When can a corporation (association) begin to operate?

Prepare for the Gold Coast CAM License Exam with engaging flashcards and multiple choice questions. Each question includes hints and explanations to help you excel in your exam!

A corporation, or association, is legally recognized as a distinct entity once it has completed its formation process, which includes filing necessary documents with the Department of State. The issuance of a corporate number is a significant milestone in this process, as it indicates that the state has officially filed and approved the corporation’s articles of incorporation.

The corporate number acts as an identification for the entity and signifies that it is now recognized under state law. This means that the corporation can legally begin to conduct business, enter into contracts, and fulfill other obligations as an official organization.

While approval of bylaws, holding the first board meeting, or collecting initial fees from members are important steps in the organization’s operational framework, none of these actions grant the legal status necessary to operate on behalf of the corporation. The corporation’s operational authority begins specifically once it has received its corporate number from the Department of State. This ensures that the corporation complies with all legal requirements for formation and operation within the state.

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