The Role and Responsibilities of an Incorporator
An incorporator is the individual or organization that sets a new business up for incorporation. They are responsible for completing legal paperwork, which establishes the new business as it’s own entity that’s separate from its owners. In doing so, the incorporator helps to provide legal protection to the business and its owners. The paperwork involves filing the Articles of Incorporation with the state in which the business will be incorporated.
Incorporators can be individuals or companies, but must be approved by the state in which they are filing on behalf of the corporation. Incorporators must also act as a point person for the corporation during the establishment process.
Key Steps in the Incorporator’s Process
Serving as an incorporator requires the following steps:
- Research: Have an understanding of the state’s business laws and requirements for incorporation.
- Prepare Paperwork: Prepares and files the Articles of Incorporation.
- Organization Sign-Off: Obtains signatures from the board of directors, officers, and shareholders.
- Follow-up Tasks: Fulfills other tasks and documents, such as obtaining a federal tax identification number for the corporation, applying for licenses and permits required for the business, and obtaining employer identification numbers.
When Does an Incorporator’s Involvement End?
Once the Articles of Incorporation are filed and approved by the state, the incorporator’s responsibility is complete. They are no longer legally liable for the business and have no ownership stake. The business is now its own separate legal entity.