By Marc Empey
Often times one of the biggest questions that will come up is: What types of documents are needed for corporate governance when a business is first formed?
It is important to remember that you may have to deal with one of two documents upon forming your LLC These two documents are Charter documents and an internal governance document. These will be the documents that layout the procedures that will be used for operations.
The fact of the matter is that you will have to form some form of charter documents regardless of what type of corporation you are going to form. These will generally need to be filed with the Secretary of States office for the state the business will be located.
Once you have made this filing, you will then need to have a document that will be for internal use as to how your business will be run. The reasons that these are classified as being internal are because they are not filed with the state or local offices. This will generally be considered to be your bylaws unless you are forming an LLC.
The biggest mistake that many companies make is the use of templates to form their documents. This is a bad practice as many companies are not alike and therefore the documents don’t fit. The best piece of advice is to confer with our Palm Springs corporate attorney to get the best fit for your documents when forming your company.