When you form corporation, it is a good practice to have bylaws or a shareholders’ agreement. Even if you are on your own, it shows that you are respecting the corporate formalities, it shows professionalism and helps prevent creditors from trying to pierce the corporate veil and get your personal assets. If there is more than one owner, an agreement is even more important to establish the rules of the road at the outset. Get your customized bylaws today.
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There is no set rule dictating what must or what cannot be in your corporate bylaws. Generally speaking, the corporate bylaws will cover:
Without bylaws, you could lose the personal liability shield that comes with the formation of your corporation. Many states have default rules that will govern your corporation if there are no bylaws, but the lack of clear rules at the outset is one of the primary reasons many disputes between owners end up at the courthouse. As lawyers like to say, you can pay a little to establish the rules now or pay a lot more to have the rules established in court.
