Statutes are internal documents, but each state may need elements that must enter them. In addition, some states require a company to explicitly change certain standard rules, such as the scope of segregation of directors and officers. The company`s statutes are similar to an enterprise agreement, as they specify how the company`s board of directors will manage the transaction. Depending on the number of shareholders expected by the company and the complexity of the business, the statutes can be simple and simple or very complex. Key to deployment: An enterprise agreement is an internal document that describes the relationships of business owners, and the statutes legally define a company as a business with the state. When writing your internal documents, you can contact a legal expert to make sure all owners or members are on the same page. Well-developed enterprise agreements and statutes can ensure a smoother day-to-day operation for each company. Key use: Enterprise agreements and statutes define both the ownership of the company and the structure of the company. Companies are legally required to file their statutes with the Secretary of State or a similar registration authority. The articles register the business as a separate entity from its owners. On the other hand, limited liability companies are not always required by law to have an enterprise agreement or to submit the agreement to the registration authority.
Each state differs from the forms in which LCs must submit their organizational documents. Unless the LLC is very small, it is usually best to appoint a person (a member or manager) to manage the business. You may want a separate compensation and refund agreement for the managing member or an external manager. An important part of starting a small business is the submission of all documents in due form. While setting up the legal structure of your business and filling out forms can be painful and frightening, it is often part of the legal process prescribed by law.