Articles of Association for Sole Proprietorship, while not mandatory under U.S. law, serves as a crucial internal document that formalizes business operations and management procedures. This document is particularly valuable when seeking business loans, entering into contracts, or establishing relationships with suppliers and customers. It typically includes details about business structure, capital investment, operational procedures, and management responsibilities. Though sole proprietorships are the simplest business structure in the U.S., having formal Articles of Association demonstrates professionalism and organizational clarity.
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1. Article 1: General Provisions: Business name, principal place of business, purpose of business, and ownership declaration
2. Article 2: Nature of Business: Detailed description of business activities and scope of operations
3. Article 3: Capital Structure: Initial capital investment and financial structure of the business
4. Article 4: Management: Management structure and decision-making authority
5. Article 5: Financial Matters: Accounting practices, fiscal year, banking arrangements
1. Article 6: Employees: Employment policies and procedures when the business plans to hire employees
2. Article 7: Succession Planning: Business continuation plans in case of death or incapacity of the owner
3. Article 8: Intellectual Property: IP ownership and protection provisions for businesses involving intellectual property
1. Schedule A: Business Assets: Detailed list of business assets and their values
2. Schedule B: Licenses and Permits: Copies of all business licenses and permits
3. Schedule C: Insurance Policies: List of insurance coverage and policy details
4. Appendix 1: Operating Procedures: Detailed business operating procedures and protocols
5. Appendix 2: Forms and Templates: Standard business forms and document templates
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