How can I set internal rules within my company to help resolve disputes in the future? The answer is your next step in forming your corporation or start-up. After creating your articles of incorporation, you must now create bylaws. Bylaws are contained within a single written document and dictate the operating standards and procedures of your business entity. They are your way to set internal guidelines and procedures for your new company.
The standards set out in your bylaws will follow through the life of your business entity determining what it can do. You are not required to file bylaws with the Secretary of State in New York, but you must keep a copy of them at your principal place of business. Typical bylaws will contain the following:
- Documenting your identifying information, such as: the name of your organization and where your office(s) are located
- The number of corporate officers and directors: you should include the members of your organization including your board of directors and the range or specific number of those directors.
- The election of your board of directors and how they will function.
- Committees: the specific roles of any special committees including formation, how their appointed, and their duties.
- The shares and stock classes that the corporation can issue.
- Information concerning director and shareholder meeting protocol, the extent to the liability arising out of the performance of their duties, conflicts of interest, and corporate record keeping.
- Specific procedure in amending bylaws and articles of incorporation.
Bylaws cover far more specific topics than the Articles of Incorporation including the corporation’s organization and structure. They are what give your company direction. What difficulties are you finding when creating your LLC’s or corporation’s bylaws?
The Law Office of Frederic R. Abramson represents start-ups in New York. If you have any questions regarding bylaws feel free to contact our office at 212-233-0666