What Is an Incorporator? & why Need Incorporator?
What Is an Incorporator?
An incorporator is a legal person in the organization who handles all the legal work related to setting up a corporation and registration within the state. All legal processes will be handled by the incorporator. This is the authorized person for filling the documents and signing the papers of incorporation. One can not start the business itself. he/she needs an incorporator who will handle and register all their legal documents and handle all types of legal work. Every organization hires an incorporator and who incorporates a business by filling forms on the organization’s behalf in the state and they will charge some amount for doing all the legal work. Some companies require more incorporators and few need one. Incorporator needs depend on the organization size.
Incorporators are not only owners of the company. Some third person and trust able person can also do incorporator work. Just he/she requires a power of attorney of the business to do the legal process on the organization’s behalf.
Working of an Incorporator
The entities of the corporation are different from the business owner. Sometimes business owners do not understand the process of incorporation for that they require an incorporator, who will understand the incorporation business form and fills the legal documents which are called articles of incorporation. These documents decide the business or we can say these are certificates of the business. What this certificate says:
- Nature and type of the business
- Name of the business or organization
- Names and Addresses of the board of directors
- What kind of corporation it is
- Information about the number and shares of stock
- Duration of the corporation
- Reason for its formation
- Name and Address of a registered agent
The incorporator does all the signing and filing of the articles of incorporation in the state at the time of the registration of the corporation. If any other document requires till the time of corporation registration then all those documents have to be submitted in the state by an incorporator.
Duties of the incorporator are:
- Selection process of the board of directors
- Organizing a beginning meeting of the board directors
- Adopting the corporation’s policies and laws
How to become an Incorporator
If the personage is more than 18 years and is having the law of corporations and other business organization certificates and having the state domicile then one can become an incorporator. There are also some other policies and rules which are set by incorporators of the state which need to qualify. Every state is having its own set of policies and rules to become an incorporator.
The incorporator must be a mature and experienced person because he/she is having the power of attorney of the corporation. This person has to sign all the legal documents of the company on their behalf. The incorporator can the owner, hired individual, the shareholder, member of the board of directors, or some other employee in the company. The incorporator can also be some agent whose work is to register corporate.
Need of an Incorporator
There are two reasons why we need an incorporator:
- Who is having the signing authority to sign legal documents and also ensure each and everything in the documents is correct.
- The person will check that organization can be a business in the state.
An incorporator is required to fill all the legal documents of the corporation. If you are running a small business then you can do it yourself. Large businesses required to hire an incorporator from outside because their filling process is hard and needs experts. There is always a risky process. If you hire fresher then you will always think how they will work and if you hire experienced one then there are fewer chances of risk. So the hiring process is always hard and tough which can be done in peace.