Structure of a C Corporation
When you decide to incorporate your business, there is a set structure to which to must adhere to be eligible as a C corporation. Small business owners will likely find that they have been performing the duties of several different positions within the corporation structure. When a small business becomes incorporated, an owner's business roles and responsibilities will change and may continue to change as the business continues to grow.
Positions within a C Corporation
All C corporations within Texas are required to have the following positions:
- Shareholders: These individuals own shares of stock in the company. Primary duties include electing the directors, approving major business actions, changing and approving the corporation's bylaws, and dissolving the corporation if necessary or desired.
- Employees: Individuals who work for the corporation and are paid for their time.
- Officers: Individuals who are elected by the directors and make everyday decisions regarding how the company operates. They must include a president, secretary, and treasurer.
- Directors: These individuals are elected by the shareholders. They are in charge of making major business decisions and are the managers of the corporation. They elect the officers and issue shares of stock.
These positions are all crucial to the operation of a corporation and help a corporation remain accountable to its shareholders as it grows.
Contact Us
To learn more about incorporating your business and the details of a C corporation, contact Texas Legal Entities today at 512-472-2431.
At any time, please feel free to ask us a question. It's FREE!