Corporation Bylaws in Colorado | Boulder Small Business Attorney
In Colorado, broadly speaking, bylaws are to corporations as operating agreements are to limited liability companies (LLCs). There are some critical differences between the two, some of which are explained below, but the basic idea is very similar: bylaws lay out many of the day-to-day rules that govern the critical relationship between the corporation’s stakeholders. Unlike operating agreements, however, bylaws generally do not set forth the ownership percentages of shareholders. If a corporation is closely held, a separate shareholder agreement will usually be appropriate. Also, operating agreements will typically include buy-sell provisions within them. Bylaws, in contrast, are not usually an appropriate document in which to include buy-sell provisions. Instead, buy-sell provisions for closely held corporations should typically be included in the corporation’s shareholder agreement, or set forth in a separate buy-sell agreement.
If you are in the process of starting a corporation in Colorado or have already incorporated and are looking for a Boulder Business Lawyer with a results-oriented approach tailored to your matter’s specific needs, contact Newell Law. We have the expertise and knowledge to draft your corporate bylaws with precision.