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Corporate Bylaw Basics Instead of using an operating agreement, which is specific to an LLC, an S corporation will rely on its corporate bylaws and articles of incorporation. All states require S corporations to use articles of incorporation.

The C corporation is the standard (or default) corporation under IRS rules. The S corporation is a corporation that has elected a special tax status with the IRS and therefore has some tax advantages. Both business structures get their names from the parts of the Internal Revenue Code that they are taxed under.

The operating agreement should include the following: Basic information about the business, such as official name, location, statement of purpose, and registered agent. Tax treatment preference. Member information. Management structure. Operating procedures. Liability statement. Additional provisions.

Most states don't require an LLC, or limited liability company, to have an operating agreement, but if you're setting up your LLC in California, the state's laws require you to have one (although you won't have to file your agreement with the state).

An operating agreement is similar to a shareholder agreement, but it is tailored for a limited liability company. Instead of shareholders, the company has members.

If you're planning on operating a single-member LLC, an operating agreement isn't as important, but you may still choose to create one for yourself to outline the way that you'll do business.

A partnership agreement and an operating agreement are very similar in what they define: ownership and investment stakes, division of profits and losses, and so on. However, a partnership agreement is used in partnerships, while operating agreements are used in LLCs.

The operating agreement is a legal document that sets rules for the relationships between the owners of a limited liability company (LLC), while bylaws provide regulations and rules that govern the operation of the corporation and internal management.

Tip: It is unwise to operate without an operating agreement even though most states do not require a written document.Operating agreements should be kept with the core records of your business. They are not required to be filed, nor will they be accepted by your state.

Call, write or visit the secretary of state's office in the state in which the LLC does business. Ask if the company you are researching has filed a copy of the LLC bylaws or operating agreement with state officials.