How to Get Started with Your Bylaws in New York City
Understanding the Importance of Corporate Bylaws for Running a Business4 min read
When it comes to running a business, you may not think twice about understanding the importance of having a comprehensive set of corporate bylaws. After all, why would you need them if you’re running a small business?
The reality is, having a set of bylaws for your business in New York City is a must, no matter the size of your business. A comprehensive set of bylaws serves as a legal framework for all stakeholders, understands how decisions will be made, and thoughtfully guides business growth. The steps that should be taken to create and maintain a functioning set of bylaws is an intensive process, and requires special expertise from experienced attorneys with knowledge of the local laws.
The goal of this article is to provide a comprehensive guide on how to get started with your corporate bylaws, while also offering helpful advice and resources for any business operating in New York City.
What are Corporate Bylaws?
Bylaws are the rules and regulations that govern the operation of a corporation. Bylaws explain how a company is managed, who’s in charge and how decisions will be made. They are among the most important documents a corporation needs to maintain, as they will guide many aspects of how a company operates.
Bylaws define the purpose of the company, how it will be structured, and how it will operate. For example, its bylaws may specify how directors are elected, the duties and responsibilities of the officers, and how meetings are held. Bylaws may also set parameters for the number of shareholders, and how dividends will be distributed.
Bylaws are created when the corporation is formed. As the business operations evolve, bylaws may change. Bylaws maintain a clear-cut understanding of what the company can and cannot do, and they helps business owners and stakeholders stay on the same page when making important decisions.
Why Do I Need Bylaws?
Bylaws are important no matter the size of your business. As a business owner, you should only operate within the structure defined by your bylaws. They serve as a type of “check and balance” that insure legality and help protect you from potential harm and loss in the future.
Bylaws also serve as a way to maintain consistency and make sure that your company’s operations are uniform across all departments. And they are also a legal requirement in the state of New York. Your corporation must have valid bylaws in order to maintain compliance with the state and your shareholders.
How Do I Get Started?
The first step you will need to take in getting started with your corporate bylaws is to find experienced legal counsel to help navigate the process. It’s important to find experienced attorneys who understand the complexities of local regulations and will be able to help you draft a comprehensive and legally sound set of bylaws.
UpCounsel is a great resource for finding experienced attorneys who understand the nuances of corporate law, and who specialize in New York City law. Whether you need a one-time consult or an entire freelance legal team for long-term projects, UpCounsel has you covered.
You can look at their list of attorneys and find one that fits your specific needs and particular areas of expertise. Their profiles provide ratings and reviews of recent work, so you can feel confident knowing you’re hiring the right lawyer with the right experience.
What is the Process of Creating and Amending BYLaws?
Once you have chosen a lawyer that is right for you, the process of creating or amending bylaws can begin. An experienced New York City attorney will help guide you through the process and provide valuable advice so that you create the best set of bylaws for your business.
In the process of creating and maintaining your bylaws, there are certain steps that you must follow in order to remain compliant. First, you will need to make sure that you have and maintain a registered office in New York City. Additionally, you will need to make sure that the office has an agent that is appointed to receive service of process in the state.
Your lawyer will also need to draft the necessary documents and files that will need to be submitted to the state. These will include the Articles of Incorporation, the Bylaws, the Consent of Incorporator and the Consent of Directors, and the Consent of stockholders, among other documents.
Once these documents are drafted, your lawyer will need to file them with the Secretary of State and register the business. Once they have been approved, your business will be officially registered and you will have an official set of corporate bylaws.
What Events Will Cause Your Corporate Bylaws Need To Be Amended?
Just as you need to review and update your business plan every couple of years, you should also update your corporate bylaws regularly to ensure that they accurately reflect the needs of your business.
Events or changes that can cause your corporate bylaws to need to be amended include changes in ownership, changes in the company’s direction, changes to the board of directors, changes to the company’s capital structure, or changes to the company’s competitive strategy. Your lawyer will be able to help advise you on when it is appropriate to amend your bylaws, and help guide you through the process.
The core message
Creating and maintaining up-to-date set of corporate bylaws is an important process for any business operating in New York City. This guide provides a comprehensive explanation of the process on how to get started on drafting and maintaining your corporate bylaws.
Having a comprehensive set of bylaws in place not only helps you maintain legally compliance, but they also help to ensure consistency and efficiency with decision-making. And with the help of experienced legal professionals, you can ensure that you’re making the best possible decisions for your business.