Future Business Leaders of America (FBLA) Business Law Practice Exam

What legal document is filed with the state to establish a corporation?

1. Articles of incorporation

2. Corporate bylaws

3. Certificate of good standing

4. Operating agreement

The correct answer is: Articles of incorporation

The legal document that is filed with the state to establish a corporation is the Articles of Incorporation. This document is essential as it officially creates the corporation and provides key information, such as the corporation's name, purpose, registered agent, and the number of shares authorized to be issued. Filing the Articles of Incorporation is a necessary step in the formation process, allowing the corporation to exist as a distinct legal entity separate from its owners. The other options, while associated with corporate governance, do not serve the purpose of establishing the corporation itself. Corporate bylaws outline the internal rules and procedures for managing the corporation, but they are created after the corporation is established. A Certificate of Good Standing is a document that shows the corporation has complied with state requirements and is authorized to do business; however, it is not involved in the initial formation. An Operating Agreement is relevant to limited liability companies (LLCs) rather than corporations, detailing the management structure and operating procedures of an LLC. Therefore, while all these documents play important roles in business operations, the Articles of Incorporation specifically fulfills the requirement for filing to create a corporation.