To define the hierarchy of your company and map out the future operation of your business, you need to draft an internal code of regulations - Kentucky Corporate Bylaws .
This is a document required by state law - although there is no obligation to submit it to any local or state authorities, it is necessary to prepare a set of rules that provide a solid foundation for the entity and be ready for an audit conducted by the IRS in case they ask you to confirm the legitimacy of the company.
Whenever you have a dispute between the company managers and directors, you can refer to the bylaws for reference to decide how to handle the issue. It can be a brief statement - indicate the name and location of the organization, explain its purpose and long-term goals, list the names and addresses of board members and officers, describe the procedures behind setting up a meeting of the board, and state how the business will amend its internal documentation and agreements.
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