Choosing to incorporate a company is a major step for any business owner. Incorporation can mean taking additional steps to ensure that everyone involved in the company is on the same page and that the appropriate New Jersey laws have been followed to incorporate properly. Specifically, drawing up corporate bylaws is an important part of this process.
Bylaws are essential to incorporation because they lay out the groundwork for responsibilities and expectations of the parties involved. Bylaws also address the business structure and guidelines that the board of directors will adhere to. In fact, choosing a board of directors is often part of the incorporation process, and the board helps create the bylaws, which can include details like how long directors should be on the board, how they should be replaced and how new directors should be chosen.
Bylaws also explain how the C-officers of the company chosen and the amount of compensation the CEO, CFO, COO and others should receive. The bylaws should also state that the C-officers will be on the board of directors. It may also be worth including instructions in the bylaws for forming business committees and when they might be needed.
The specific information to include in corporate bylaws can differ depending on the size of the company and its specific needs. In any case, the rules and guidelines need to be legally binding. As a result, it is important the New Jersey company owners ensure that they have the right information and assistance when drawing up these important details.