Bylaw / Operating Agreement
Bylaws/Operating Agreement basically serves as a corporations/LLC operating manual. This form includes an abbreviated and flexible Bylaws/Operating Agreement that closely follows State Statutes to allow your company to conduct any legal business.
Bylaw/Operating Agreement $95
Bylaws/Operating Agreement basically serves as a corporations/LLC operating manual. This form includes an abbreviated and flexible Bylaws/Operating Agreement that closely follows State Statutes to allow your company to conduct any legal business. This is especially important for the most protective LLC. Unfortunately, many self help document companies, as well as legal professionals, produce large volume Bylaws/Operating Agreements for dollar value appearance that may actually inhibit a company’s ability.
Corporate and organizational bylaws regulate only the organization to which they apply and are generally concerned with the operation of the organization, setting out the form, manner or procedure in which a company or organization should be run. Corporate bylaws are drafted by a corporation’s founders or directors under the authority of its Charter or Articles of Incorporation.
Bylaws widely vary from organization to organization, but generally cover topics such as how directors are elected, how meetings of directors (and in the case of a business, shareholders) are conducted, and what officers the organization will have and a description of their duties. A common mnemonic device for remembering the typical articles in bylaws is NOMOMECPA, pronounced “No mommy, see pa!” It stands for Name, Object, Members, Officers, Meetings, Executive board, Committees, Parliamentary authority, Amendment.
Bylaws generally cannot be amended by an organization’s Board of Directors; a super-majority vote of the membership, such as two-thirds present and voting or a majority of all the members, is usually required to amend bylaws.
An operating agreement is an agreement among Limited Liability Company (“LLC”) Members governing the LLC’s business, and Member’s financial and managerial rights and duties. Many states in the United States require an LLC to have an Operating Agreement. LLCs operating without an Operating Agreement are governed by the State’s default rules contained in the relevant Statute and developed through state court decisions. An Operating Agreement is similar in function to corporate bylaws, or analogous to a partnership agreement in multi member LLC’s. In single member LLCs, an operating agreement is a declaration of the structure that the member has chosen for the company and sometimes used to prove in court that the LLC structure is separate from that of the individual owner and thus necessary so that the owner has documentation to prove that he or she is indeed separate from the entity itself.
Limited Liability Companies are very flexible in nature and the operating agreement defines each member or manager’s rights, powers and entitlements. This includes capital accounts, membership interest, distributions of profit and allocated tax responsibility, just to name a few. This internal document is an agreement set by the company members that contains provisions for critical items and rules that run the company. Operating agreements can be amended at any time by the company members or managers.