The Difference Between Corporate Officers and a Board of Directors.
Some Corporate Advice for the Holidays.
Happy Holidays from all of us at Alron Enterprises, Inc. As we move toward the New Year, we want to share some advice regarding Corporate management. We get so many questions regarding corporations, and we are very happy to answer them all in person or over the phone, but this article will focus on two common questions we receive from start up businesses:
“What’s the difference between an Officer and a Director?” and “Do I need either in my business?”
The answers are simpler than you think.
Simply stated: Directors decide and Officers execute.
Corporate Officers directly manage a corporation, and carry out the daily tasks of running the company. The three minimum officer positions a corporation has are: President, Treasurer, and Secretary. A single person can be all of these positions in Florida, however this could vary state to state. Essentially, corporate officers all have the same signing authority, but the President leads the team, the Treasurer handles funds, and the Secretary up-keeps documents and paperwork, such as corporate meeting minutes. Officers are automatically considered employees of the corporation.
The Board of Directors is a level above the officers. They have meetings and make major business decisions, such as electing corporate officers, purchasing major equipment like vehicles or property, accepting and/or approving loans, authorizing stock purchases, and making any other monumental decisions. A director is not necessarily an employee of the company, however a director can also be an officer, which by default would make them an employee. You should typically have at least 1 Director in a profit corporate structure and a minimum of 3 Directors in a non-profit corporate structure.
Contact Brevard County’s Corporate Specialist!
Alron Corps, Inc., a subsidiary of Alron Enterprises, Inc., specializes in providing small businesses the highest quality expert assistance in entity formations and business support. If you need assistance understanding the corporate structure, or have further questions about the roles of your Corporate Officers and Board of Directors, Alron Corps, Inc. has your back. It’s our goal to provide you with effortless business experience so you can focus on what matters most – growing your business. Give us a call at 321.951.7626, or contact us here. We look forward to working with you!