Corporate bylaws are legally required in Arizona. AZ Rev Stat § 10-206 states that the “board of directors of a corporation shall adopt initial bylaws for the corporation.” This means that adopting bylaws is a legal requirement. Your corporate bylaws determine corporation structure and rules. This includes board of directors, shareholders’ meetings, whether shares carry voting power and record keeping.
Formation Process and Legal Requirements
Bylaws allow business to maintain consistency in operations and communicate rules to avoid conflicts and disputes. They cover director elections, meeting organization, officer roster and duties summary. Bylaws direct those in authority their duties to overlook the corporation.
Establishing Your Business in Arizona
One crucial step in establishing your Arizona business name is the completion of the necessary legal paperwork, known as the arizona articles of organization. This document is filed with the Arizona Corporation Commission and officially establishes your business as a limited liability company (LLC) within the state.
Organizational Meeting Post Incorporation
After incorporation the board of directors shall hold an organizational meeting at the call of a majority of the directors to complete the organization of the corporation by appointing officers, adopting bylaws, and carrying on any other business brought before the meeting.
Arizona requires that you publish the Articles of Incorporation in their entirety. The publication must be in a newspaper in general circulation in the county of the known place of business in Arizona for 3 consecutive publications. The publication must be filed within 60 days of the date of incorporation.
Bylaws Creation and Compliance
Some states, including Arizona, legally require companies to create bylaws. However, filing your bylaws with the Arizona Corporation Commission is not mandatory; simply keep them with your other business records.