The Top Six Reasons Your Company Needs Bylaws
Although California does not require a company to have bylaws, below are six reasons why every business owner should invest in a strategically thought out set of bylaws for their company:
1. The Bylaws are the Company’s Legal Backbone.
A company’s bylaws provide the framework for how it operates, including rules for the owners’ relationship.
2. What if Your Company Does Not Have Bylaws?
If your company does not have bylaws in place, the laws of California will control how the company is run. The owners should determine how it would like to have the company operate than to rely on the state’s statutes.
It is similar to an individual not having a will or trust. If they die, the state’s statutes determine how the individual’s assets are distributed. Instead, the individual should thoughtfully think through how they would like their assets distributed and to set up the legal mechanism …
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