When you start a business, you should write a list of the main rules and guidelines the company will comply with during its day-to-day operation - prepare California Corporate Bylaws every manager, officer, and board member must follow for the benefit of the entity.
Although the state does not require every corporation to prepare and keep the bylaws , it is a good idea to create a guide that will define how your business will operate - indicate the names of the directors and determine how long can they stay on the board, describe the rules to follow when setting up a general or emergency meeting, outline the structure of the management, state the objectives of the company, and include a provision that explains what to do when the organization decides to work with a third party taking out a loan or signing an agreement.
You do not have to file this document with any authorities - just maintain and amend the bylaws whenever necessary and refer to them when you want to confirm the entity functions correctly.
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