What does it mean that my boss has listed me on legal forms as a corporate officer? Are there risks/benefits?
I have been part of creating a new e-commerce business over the past year - web development, customer service, marketing - you name it. I have made the main contributions that have led to our very high search engine rankings and booming business. What does it mean that I am listed as a corporate officer. Does it provide him with tax benefits. Should I be getting something for that? Are there any risks involved?
If your boss has listed you as a corporate officer, he is implying that you are a board member (SEC registered or nonprofit corporation). If the business is a sole-proprietorship, he is probably implying that you are in a position of authority, but are not a board member (board members exist only in publicly traded or nonprofit corporations). There are definitely liabilities involved either way. If you are actually a board member, you should make sure you are covered under a corporate Director's and Officer's (D&O) Liability Policy. If you act in a professional capacity (accountant or director) within a corporation or sole-proprietorship, but are not a board member, you should have professional liability insurance as a good measure. This is something you would have to pay for yourself. There are no benefits to your employer for listing you as a corporate officer. He is probably using your name to lend credibility to the business, however, so it would not be unjustified to ask for compensation commensurate with your level of responsibility. The only tax benefits would be listing you as an expense if he pays you a consulting fee, which would be justified. This would decrease his taxable income (income minus expenses equals taxable income).
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