What's so important about corporate bylaws?

Or the limited liability company's operating agreement? Or a partnership agreement?

First and foremost, these documents set out how the legal entity will operate internally. Think of them as a blueprint or like a disk operating system. I used the analogy to tailor made goods in an earlier post. The by-laws set out the rights and responsibilities of the owners to one another and to the business. The by-laws need to meet the needs of the owners and the business.

Secondly, the agreement - if it is any good - sets out the process for splitting up the business. For a bit more on this topic you might want to read Like a marriage, a new business partnership needs a 'pre-nup' written by an Illinois attorney and published in The Napierville Sun.