Corporate Record Book Documents: Governing Document
This week’s blog is going to discuss governing documents with regards to your corporate record book. We are going to discuss what a governing document is, how it is approved, and whether you need one for your company.
The governing document for an LLC and a corporation are different. Where corporations have “bylaws”, a limited liability company has an “operating agreement”. While each document basically lays out how the business is to be ran, they each go about their way differently.
For example, an operating agreement may make mention to how the LLC is managed (i.e members, managers, managing members, etc.). But the by-laws of a corporation would lay out the rights and rules for dealing with shareholders, officers, and directors. The operating agreement may mention a yearly meeting of the members of the LLC, but the by-laws require an annual meeting of the shareholders and the directors.
The professionals at The Center for Financial, Legal and Tax Planning are more than well-equipped to answer your questions with regards to corporate record books or any other business formation questions. Please contact us at (618) 997-3436 to setup a free consultation.