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The function of a corporation charter is to establish the basic elements for an incorporated business enterprise. For example, a corporation charter sets forth the activities the corporation intends to engage in once established.
Among other things, it states whether it will be an S Corporation or a C Corporation and how many authorized shares there will be. It also states how its corporate governance and operations will work. A company that seeks to incorporate must file articles of incorporation with the appropriate authority. In the United States, that authority is usually the states and sometimes the federal government. It is also called a corporate charter or simply a charter. See also: Charter Amendment Limitations.