A promoter is a person who starts up a business, particularly a corporation, including the financing. The formation of a corporation starts with an idea. Preincorporation activities transform this idea into an actual corporation. The individual who carries on these preincorporation activities is called a promoter. Usually the promoter is the main shareholder or one of the management team and receives stock for his/her efforts in organization. Most states limit the amount of "promotional stock" since it is supported only by effort and not by assets or cash. If preincorporation contracts are executed by the promoter in his/her own name and there is no further action, the promoter is personally liable on them, and the corporation is not.
Under the Federal Securities Act of 1933, a pre-organization certificate or subscription is included in the definition of a security. Therefore, a contract to issue securities in the future is itself a contract for the sale of securities. In order to secure an exemption, all stock subscription agreements involving intrastate offerings should contain representations by the purchasers that they are bona fide residents of the state of which the issuer is a resident and that they are purchasing the securities for their own account and not with the view to reselling them to nonresidents. A stock transfer restriction running for a period of at least one year or for nine months after the last sale of the issue by the issuer is customarily included to insure that securities have not only been initially sold to residents, but have "come to rest" in the hands of residents.
Hillsborough Florida Preincorporation Agreement between Incorporates and Promoters: A Comprehensive Overview The Hillsborough Florida Preincorporation Agreement between Incorporates and Promoters refers to a legally binding contract that outlines the terms and conditions agreed upon by the individuals involved in the process of incorporating a new company in Hillsborough County, Florida. This agreement serves as a crucial foundation prior to the company's formal establishment. In this agreement, key aspects such as the roles and responsibilities of the incorporates and promoters, the division of shares, the nature of the business, and various other crucial elements are meticulously outlined. The primary purpose of this document is to establish a clear understanding between all parties involved, ensuring a smooth and successful business incorporation process. Different types of Hillsborough Florida Preincorporation Agreement between Incorporates and Promoters: 1. Partnership Preincorporation Agreement: This type of agreement is specifically designed for businesses that are set up as partnerships. It covers the contributions of each partner, profit-sharing arrangements, decision-making processes, and other relevant provisions. 2. Limited Liability Company (LLC) Preincorporation Agreement: Suitable for companies planning to establish themselves as LCS, this agreement outlines the roles and responsibilities of the members, profit-sharing arrangements, the procedure for adding or removing members, and other pertinent details. 3. Non-profit Organization Preincorporation Agreement: For individuals or groups aiming to establish a non-profit organization in Hillsborough County, this agreement highlights its mission, purpose, board member roles, capital structure, and other specific requirements needed for 501(c)(3) qualification. 4. C Corporation Preincorporation Agreement: This agreement is suitable for companies planning to establish themselves as C Corporations. It covers various aspects, including the roles and responsibilities of the board of directors, shareholders, decision-making processes, and provisions related to stock issuance. 5. S Corporation Preincorporation Agreement: Specifically for businesses planning to form an S Corporation, this agreement outlines shareholder rights, distribution of profits and losses, qualifications for S Corporation status, taxation considerations, and other relevant provisions. By using the applicable Hillsborough Florida Preincorporation Agreement between Incorporates and Promoters, businesses can establish a solid structure and ensure a smooth transition from the preincorporation stage to an officially recognized entity. It is important to consult with legal professionals specializing in business incorporation to ensure compliance with local laws and regulations.Hillsborough Florida Preincorporation Agreement between Incorporates and Promoters: A Comprehensive Overview The Hillsborough Florida Preincorporation Agreement between Incorporates and Promoters refers to a legally binding contract that outlines the terms and conditions agreed upon by the individuals involved in the process of incorporating a new company in Hillsborough County, Florida. This agreement serves as a crucial foundation prior to the company's formal establishment. In this agreement, key aspects such as the roles and responsibilities of the incorporates and promoters, the division of shares, the nature of the business, and various other crucial elements are meticulously outlined. The primary purpose of this document is to establish a clear understanding between all parties involved, ensuring a smooth and successful business incorporation process. Different types of Hillsborough Florida Preincorporation Agreement between Incorporates and Promoters: 1. Partnership Preincorporation Agreement: This type of agreement is specifically designed for businesses that are set up as partnerships. It covers the contributions of each partner, profit-sharing arrangements, decision-making processes, and other relevant provisions. 2. Limited Liability Company (LLC) Preincorporation Agreement: Suitable for companies planning to establish themselves as LCS, this agreement outlines the roles and responsibilities of the members, profit-sharing arrangements, the procedure for adding or removing members, and other pertinent details. 3. Non-profit Organization Preincorporation Agreement: For individuals or groups aiming to establish a non-profit organization in Hillsborough County, this agreement highlights its mission, purpose, board member roles, capital structure, and other specific requirements needed for 501(c)(3) qualification. 4. C Corporation Preincorporation Agreement: This agreement is suitable for companies planning to establish themselves as C Corporations. It covers various aspects, including the roles and responsibilities of the board of directors, shareholders, decision-making processes, and provisions related to stock issuance. 5. S Corporation Preincorporation Agreement: Specifically for businesses planning to form an S Corporation, this agreement outlines shareholder rights, distribution of profits and losses, qualifications for S Corporation status, taxation considerations, and other relevant provisions. By using the applicable Hillsborough Florida Preincorporation Agreement between Incorporates and Promoters, businesses can establish a solid structure and ensure a smooth transition from the preincorporation stage to an officially recognized entity. It is important to consult with legal professionals specializing in business incorporation to ensure compliance with local laws and regulations.
