One of the most important steps when creating a business in Florida is the creation of company bylaws. Bylaws setup procedures and rules for how the company will run and make sure that all of the owners, employees, etc. are on the same page.
Bylaws can help to establish an operational framework, define the relationship between the owners, and settle future disputes in the company. By settling possible disputes in the beginning, it will be easier to fix problems as they occur, when the involved parties may not have such an objective perspective.
Bylaws are also a required corporate formality. Their existence helps to ensure the company’s limited liability protection. Otherwise, a court may “pierce the corporate veil,” in which case the owners and shareholders may be responsible for any debts incurred by the company.
Bylaws are generally required to open a bank account or request a loan. They are also useful to give to investors, shareholders, and other outside sources to better understand how the business will function. If the business plan is clearly described in the bylaws, an investor is much more likely to invest in your company.
Bylaws are only one of the corporate formalities you must follow to protect your assets. With offices in Jacksonville, Orlando, and Miami, Boyer Law Firm can help you draft your bylaws as well as provide other incorporation services. By hiring a business attorney to help you with the start-up of your business, you will ensure that you are protected.
Sources: YFS Magazine ; EHow
