• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Role Of "Incorporator"

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.



Hi, One of my friends is inviting me to be a 50% shareholder in a company that he now owns. Turns out that the original "incorporator" (not the agent) of the company was another friend of his. My friend is telling me that the incorporator does not have an existence or any say or value once an entity has been incorporated and that the share holders are always the complete owners of the company. Could I please get a confirmation of this? I just dont want the guy who originally filed for the incorparation (in his name) to one day show up and ask for his share of the profits.

Thank You very much.


Charley C

Good news. The incorporator normally has no continuing role in the business. He or she designates the directors and drops out of the picture -- absent some other relationships. But to protect yourself, get a letter from him, and your new partner, stating that!

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential