What You Must Have On Hand

If you're working on business incorporation, you may already have some of the documentation you're going to need for this next phase of your company's operation. But especially if you're a relatively small company, one of the things you may not yet have prepared is a set of bylaws. If you're ready to write the bylaws required for business incorporation, remember that these rules are going to govern - at least to a great degree - the day-to-day business operation of your company.

There's no doubt that bylaws as a rule sound very formal and it may seem impossible to wade through the "legal-ese" of some bylaws. If you're a small company that has entered into business incorporation for tax and liability purposes, don't let this point hang you up. Your bylaws can be as simple as your company demands.

One thing that you should carefully consider is the way in which you'll hold meetings, who should attend and how much advance notice you're required to give. While it's a good idea to have a series of checks and balances in any company, a small business may find calling a meeting of four or five peripheral people in order to make a purchase becomes a significant hassle. Before you inflict such rules, consider the way the business is run, who'll be making those decisions on the daily operations of the company, and whether those checks and balances are needed for your company.

If you have full incorporation, you're going to be required to also have a board of directors. Even a small business that's successfully entered into business incorporation must establish this governing board. While it may seem like a good idea to have Uncle Joe sit on the board because he offered up some financial backing to get you started, consider the impact of giving Uncle Joe a say in the decisions of your company. Once you seat that person on the board, you have to take official action to remove him. The financial backing may come with some restrictions, but be wary of seating someone on your board of directors. It may seem that's it's nothing more than an honorary offering at first, but it could be giving more power than you intended.

The paperwork you're required to file and to keep in your office as part of your business incorporation should be carefully considered. Resist the temptation to simply get something on file to meet the requirements of business incorporation. Those documents could greatly impact your company's future.

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