Why do I Need a Board of Directors?

From the tutorial building a board of directors

If you are starting a company, congratulations! This could be the first step on the road to financial independence if things work as you're planning.

These plans may be fairly modest and you might be pursuing the role of independent consultant or contractor. In this case, you don't need to consider the issues involved with putting together a Board of Directors. Even if you incorporate your consultancy, all states now permit a corporate board with a single director, as long as there are a limited number of shareholders.

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On the other hand, you might be more ambitious, dreaming of untold riches and fame, maybe a public offering of stock in your company, perhaps even your picture on the front cover of Forbes or FORTUNE! If this sounds closer to your objectives and you are planning to aim for the stars, you'll definitely want to assemble a Board of Directors. Good: you're just the person we hope will read through this tutorial.

This tutorial discusses the size and composition of the board, what to expect when you bring investors into the company (in particular their desire to either participate in or observe your board meetings), the duties of a board, practical matters such as compensation and legal requirements surrounding meeting minutes, and, finally, a list of common mistakes you should try and avoid.

Let's get started!

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