ELI5: Explain Like I'm 5

Certificate of incorporation

Okay kiddo, so you know how when you want to start a club or a group of friends, you have to come up with some rules and things that you all agree to follow? That's sort of what a company is like, except instead of just having fun with your friends, you're trying to make money by selling things or providing a service.

Now, when you want to make a company, you have to do some special things to make it official. One of those things is getting a certificate of incorporation. It's almost like a birth certificate for your company!

The certificate of incorporation is a special piece of paper that says the government has officially recognized your company as a real thing. It also says what the company's name is, where it's located, and who the people in charge are. It's kind of like a badge that shows everyone that your company is allowed to exist and do business.

Getting a certificate of incorporation usually involves a lot of paperwork and fees, but it's worth it because it makes your company official and gives you some legal protections. It's like getting a special outfit for your club that shows everyone that you're all part of the same group!

And that's pretty much the basics of what a certificate of incorporation is. It's a special document that makes your company official, and lets everyone know that you're allowed to do business.