Stage One of the Business Credit Success Guide
How to Build Small Business Credit with No Personal Guarantee

Step 7 ~ Draft Business Operating Documents

The last step in setting up a proper legal entity to provide the highest level of protection is to draft and file the documents that govern your Corporation or Limited Liability Company (LLC) and detail the operation and management structure of your business. Instead of filing with the Secretary of State, these documents are created and stored within the company’s internal record system.  This is another item a bank will require even, in most cases, for opening a business checking account.

The directors of a corporation must draft bylaws and a LLC must draft an operating agreement to outline the company’s rules and regulations. If you ordered Standard Package from MyNewCompany in Step 2 then you will have the Corporate Forms CD or LLC Forms CD (depending on your entity type) which contain multiple samples that can be modified to fit your business situation. We included a few other resources and we highly recommend consulting with an expert or at least studying enough examples and resources until you completely understand the details of the document.

• If you are the sole owner you might be able to get away with modifying one of the sample corporate bylaws or sample operating agreements we have available.

Note: The above is provided for informational purposes only and is NOT to be relied upon as legal advice.

• In any case, we highly suggest you order MyNewCompanyForms since the additional documents and resources they provide can be used over and over throughout the life of your entity, such as: minutes, resolutions and an annual compliance checklist..

Congratulations! You have completed every step required to properly structure your business to build business credit.  Now that the framework is in place we can start on the steps to give your business the face it needs to secure business credit with no personal guarantee.