Mission Vs. Charter

A mission statement of a company is a statement that provides the vision and purpose of the business. It is usually a broadly scoped statement that allows the readers to understand the values and direction of the company. Some businesses quantify their objectives, such as stating a specific dollar mark they hope to achieve by a certain year. Others simply state they hope to be the best or most innovative in their industry. The mission statement should offer the reader knowledge about the product or service the company offers, what its moral obligation is to the public and its customers, the target market and its strategic goals.

The charter, also called the business charter or the articles of incorporation, is a document a company fills out and submits to a specific state to incorporate the business. A corporation is a form of business that enjoys several benefits, including limited liability and being a separate entity for tax purposes. To receive these benefits, the owner must file the articles of incorporation with the state in which he wishes to incorporate. Some states offer more tax benefits than others, so this is a key decision. The charter usually states the general purpose of the business, the number of shares the corporation will issue and the par value of these shares.

There are several key differences between a mission statement and a charter. Almost every company should have a mission statement, so any person who wishes to become involved with the business will understand the needs and purpose of the entity. Only businesses seeking to incorporate as either an S corporation or a C corporation or as a limited liability corporation must file a charter. Another difference is that the mission statement belongs to the business itself and does not need to be filed with any government organization, whereas the company files the charter with the specific state's Secretary of State. Finally, the intent of the documents is completely different. The mission outlines the values and goals of the organization, whereas the charter merely supplies objective information, such as the name of the business and number of shares it is authorized to issue.

There are forms of business that do not have to file an articles of incorporation, such as the sole proprietorship, the partnership and a limited liability partnership. These businesses may choose to create a charter that simply states the name of the business and its purpose. However, as these forms are not corporations, they do not need to file an articles of incorporation with the state government. In these cases, the charter is just an internal document that states the business is being formed.