Thursday, 25 April 2013 20:25

How many Board members do we need to have on our Board?

Generally, the initial Directors should be the founders and/ or persons who are going to be overseeing the operation of the entity. In most states, ONE (1) PERSON may serve as the sole Director for incorporation purposes. However, in furtherance of submitting a 501(c)(3) application or other type of tax exempt application, the IRS may require (almost always requires) three (3) distinct individuals to serve on the Board of Directors. Also, keep in mind that you may change your Board from time to time pursuant to your corporation’s bylaws and/or applicable law. Also, keep in mind that your Board may be compensated, per applicable law, in a reasonable amount. Generally, though, the IRS prefers Directors who are volunteers. In the event that initially you only have one (1) Director, do not worry as the selection of the additional Directors needed may take place at a later time.

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