Corporation Bylaws Under Utah law, corporations are not required to adopt bylaws. However, they can be very helpful and are viewed by some as necessary. The function of the bylaws is to supplement the articles of incorporation by defining more precisely the powers, rights and responsibilities of the corporation, its managers, and its shareholders and by stating other rules under which the corporation and its activities will be governed. The bylaws may make provisions for special committees of the board, defining their membership and the scope of their activities. They set up the machinery for the transfer of shares, the maintenance of share records, and for the declaration and payment of dividends.
Any business needs money to operate and to grow.
One advantage of incorporation is the large number of sources of funds that are available to businesses that incorporate. One such source is the sale of corporate securities, including shares, debentures, bonds, and long-term notes payable. Besides obtaining funds from the sale of securities, a corporation may be financed by other sources. A bank may lend money to the corporation in exchange for the corporation's short-term promissory notes, called commercial paper. Retained earnings provide a source of funds once the corporation is operating profitably.