question.jpgIn Business Law

How many directors should my corporation have?

You can generally have as many directors for your corporation as you determine is appropriate. However, you should always check your state law, particularly if you are considering having just a single director, as some states require its corporations to have at least two directors. The general rule, which should be fairly obvious, is that bigger corporations tend to have more directors, while smaller corporations tend to have fewer. Typically, a corporation can start out with two or three directors. Three directors, or any odd number, is the preferred way to go because it helps avoid running into ties and deadlocks when the directors are voting on issues.

While directors are often owners/shareholders or officers of the corporation, it is usually a good idea to have at least one of the directors be someone who is otherwise unaffiliated with the company, so that they can bring an outside opinion to the table, free from any of the other concerns that may be implicated by a director who is also an officer or a shareholder.