Incorporate in Orlando Florida Roles in a Corporation
FreedomSBS’s staff has been offering business incorporation services for 15 years. The question we get the most is…So what does an incorporation do? How does that differ from a sole proprietorship? So you get lesser liabilities as an individual when you incorporate in Orlando, Florida, but it also comes with an extra load of responsibilities. When incorporating in Orlando, Florida, you need to understand the changing dynamics of how your business will need to be run and the roles of different individuals and groups associated with the corporation.
Florida Incorporation Role 1 – Board of Directors
The original list of designated directors is provided in the Articles of Incorporation when you incorporate in Orlando, Florida. Articles of Association is a document that needs to be filed at the state office in order to legally form a corporate entity. The job of the directors is to oversee the different officers in the company and to make sure that it is operating according to the corporate and law procedures.
Directors have the fiduciary duty to act in the entity’s best interest which includes the protection of the shareholder’s investments. The board formally controls the decisions of the corporation and so investors demand at least one director to be the representative. In some cases, the investors may prefer contractual alternatives rather than directors so that they can avoid the fiduciary duty requirements and rather work in their interests than the company’s.
The board of directors has the authority to appoint and fire officers of the corporation that perform day to day operations.
Florida Incorporation Role 2 – Shareholders
One of the primary advantages of incorporating in Orlando, Florida, is to be able to go public and take up shareholders to raise more capital and make the corporation grow. Shareholders are those people who invest their money in a company in return for a certain amount of shares. Shareholders generally meet annually at the annual meeting and are also responsible for electing the board of directors. Shareholders are neither liable for any illegal or wrongful activities nor for any other debts and liabilities.
Florida Incorporation Role 3 – Officers
The officers most typically include the president or CEO of the company, the treasurer, a secretary among others. The officers do not have the same level of fiduciary duties as those of the board of directors.
The foundation of a corporation lies on these primary positions and thus the success of a business vastly depends on the competence of the individuals appointed on these positions. So if you are thinking of incorporating in Orlando, Florida, make sure that you have enough resources, potential shareholders and management system to take on the task.
Many small businesses thus prefer to form LLC in Orlando, Florida because it offers the same no liability benefits as that of a corporation, however a business does not necessarily need to follow protocol or other restrictions as those of a corporation. An LLC is like an entity responsible for all its liabilities and at the same time is flexible and free of obligations like annual meetings or board of directors. So make sure that you understand the responsibilities before incorporating in Orlando, Florida. There are many incorporation companies that can offer advice and processes for all the possibilities available to your business.
If you need more information about our business development services, please contact us at 407-344-1228. FreedomSBS is a marketing, graphic & web design, accounting, internet marketing, business development, and corporate law resource firm all in one! FreedomSBS is your one stop shop to start, grow and mature your business. Our services include: incorporation services, graphic design, logo design, web design, web development, internet marketing, search engine optimization (SEO), marketing consultations and corporate law resources. Our services are provided nationwide, but since our main office is located in Kissimmee, FL, we mainly help businesses in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL.