Why Bylaws are Important for Your New Company
The Secretary of State fails new businesses by not requiring you to record your company bylaws. It signals to the entrepreneur that articles of incorporation are more important than company bylaws, leaving bylaw drafting a mere afterthought.
Every business is different and has issues that need to be addressed in its bylaws. Therefore, “template” bylaws you can acquire via Google or your local bookstore are a one-size-fits-all approach to a unique situation.
Using template bylaws and filling in the blanks with your company’s name is like purchasing a suit that only comes in one size. And while you may initially file this one-size-fits-all suit into the back of your closet, the day will come when you will have to wear this suit out in public and pray it doesn’t rip at the seams.
About the Author
Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Click here to learn more about his practice.
[...] corporation’s internal administration and management. Startups often fail to draft bylaws, as bylaws aren’t submitted to the secretary of state. Don’t be one of these startups, unless you are 100% certain that your startup will never [...]