Managing Business Changes or Amendments
From time to time corporations have the need to change their names (either as a marketing tool or a change of times), ownership, change in purpose, etc. However, changes are not as easy as it sounds. The change must take place according to both the rules set forth in the corporation's articles as well as according to the rules of the state in which the corporation is set up.
Why is it important
The information included in your Articles of Incorporation/Organization or in your Certificate is the official information the government has on record for your company. When that information changes, it also needs to be updated with the appropriate government agency.
- Submitting Articles of Amendment tells the government that the appropriate company representatives have consented to the change. For example, amending the business purpose of a corporation might require consent by the incorporator or the corporation’s directors or shareholders.
- Approval by the government certifies that your company met legal requirements and that the information has officially been changed.
Here are some of the common business changes: