Quorum Definition

Learn more about what a quorum is in business.

Ready to start your dream business? Check the availability of your new company name to get started.

Starts at $49 + state fees and only takes 5-10 minutes

Excellent Trustpilot reviews 10,286 reviews Trustpilot reviews
quorum definition

Most businesses need a key group of people to operate legally. For example, a corporation needs a board of directors, and a Limited Liability Company (LLC) needs members or managers. Whatever the name of this group of people, they can only be effective if a certain minimum number of them meet regularly. People refer to this minimum number as a quorum. Having a quorum is vital for the business decision-making process. So unless your small business is a sole proprietorship, you’ll need to understand what a quorum is and how it affects your operations. Read to learn more about the word “quorum,” including its meaning and a few examples.

Start Your Company

What is a Quorum?

The Merriam-Webster Dictionary’s definition of “Quorum” is “a select group.” Quorum’s business definition is “the number . . . of officers or members that when duly assembled is legally competent to transact business.” Put another way; a quorum is the minimum number of voting members that need to attend a meeting for the meeting to be effective. Without a quorum, the meeting is not legitimate, and the attendees can’t make binding business decisions.

Despite the unusual name, Americans encounter the concept of a quorum quite often. For instance, both the Senate and House of Representatives require a quorum to vote on bills. The Senate, which has 100 members, requires a quorum of 51 to conduct business. By contrast, the quorum for the House of Representatives varies. Depending on the situation, a quorum can be as few as 25 members or as many as 218. 

The vast majority of LLCs, corporations, and even partnerships require a quorum to carry out business. 

Quorum: Advantages and Disadvantages

Conceptually, a quorum benefits a business by ensuring that all decisions are made fairly and democratically. If a company with a board of directors had no quorum, then any director could single-handedly call a meeting and make binding business decisions on their own. A quorum’s main disadvantage is that it can prevent a company’s leaders or owners from taking rapid action. For example, if a company receives a time-sensitive business offer, it can be difficult for a sufficient number of directors or members to attend the meeting in time to respond. Alternatively, if a company has a relatively small number of owners or directors, then it can be difficult to reach a quorum when one or two directors are unavailable or ill. However, you can make these two scenarios less likely by lowering the quorum. 

Thinking of starting a business?

We can help you form it.

START NOW

Summary: Quorum Definition

A quorum is the minimum number of people needed to conduct business in a meeting. It helps ensure that the process of making business decisions remains democratic and representative of the company.

We Can Help

Learning about things like quorums is just the start of your business journey. It’s easy to feel overwhelmed by all of the new information that underlies the process of running a business. And you’ll also have to deal with significant paperwork and filing fees. 

We are ready to help you with all of your business needs. We’re passionate about helping business owners. So we’ve developed an extensive collection of products and services to streamline the tedious and time-consuming parts of running a company. Wherever you are on your business journey, we have a tool that can help you. If you need help starting a business, for example, check out our Business Formation Services. Once you’re up and running, you can use ZenBusiness Money to effortlessly organize your business’s finances so that paying taxes and running at a profit becomes a breeze. And with our Worry-Free Compliance Service, we can help you keep your company compliant with all local and state regulations. With this service, we’ll notify you when important deadlines are coming up. We’ll also provide you with up to two free amendments every year so you can make the changes you need as your company grows. The opportunities are endless. Let us help you take your business to the next level!

 Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

Start New Company Today

Looking for a sign?

This is it.

Create Your LLC in Minutes