Operating Agreements & Bylaws

After you incorporate your business as a corporation or LLC, it’s wise to adopt a document setting the rules by which your company will operate. This not only is a requirement in many states but allows your company to follow rules, hold regular meetings and generally prevent disagreements that inevitably come up in the life of most companies.

Note: Our incorporation and LLC formation services include these personalized documents with every order.

Corporate Bylaws

Corporations adopt what are known as Corporate Bylaws. These are the rules agreed upon by the shareholders for managing various aspects of the company including:

• How and when to elect or remove Directors.
• How and when to appoint or remove Officers.
• When the Annual Shareholders meeting is held and what kind of notice needs to be given.
• What kind of records need to be maintained.

Operating Agreement

Limited Liability Company’s adopt what is known as an Operating Agreement. These are similar to Bylaws but since LLCs are less formally structured than corporations, the Operating Agreement tends to cover more areas of operation and deal with issues like:

• Adding or Removing a Member or Manager of the LLC
• Specific financial requirements of each new Member
• Meeting and Voting rules.
• Events that may trigger dissolution of the company.

Both Bylaws and Operating Agreements can cover much more than discussed here and are easily updated by approving any changes amongst the members or shareholders.