MUST HAVE BUSINESS DOCUMENTS

photo-1496171367470-9ed9a91ea931Bylaws include the rules and regulations that govern your corporation. Each state has its own requirements for what items must be included in the bylaws.

Among a number of other details, corporate bylaws generally contain:

  • the structure of the organization
  • the duties and responsibilities of a corporation’s members
  • details about the board of directors
  • information about when and where directors’ and shareholders’ meetings will be held
  • a list of committees

Much the same, limited liability companies (LLCs) in many states are required to create an LLC operating agreement; a document that provides a framework for their operation.

LLC operating agreements typically contain information about:

  • members’ percentages of ownership
  • members’ rights and responsibilities
  • members’ voting powers
  • allocation of profits and losses
  • management details
  • the fiduciary duties of members and managers

Corporations and LLCs aren’t required to file their bylaws or operating agreements with the Secretary of State. Still, you should have them in place as soon as you’ve incorporated or formed your LLC, because these documents are often requested by:

  • lenders, when you’re trying to obtain financing
  • banks, when you’re opening a business checking account
  • potential business partners or investors
  • attorneys and accountants

 

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