Bylaws describe the way your corporation will be organized and operated, and they're required in most states. Corporate bylaws are guidelines for the way you'll structure and run your corporation. Bylaws are required in most states. Even when they're not required, bylaws are useful because they avoid uncertainty and ensure you're complying with legal formalities.
Bylaws serve a couple of important purposes:
They provide a road map for running your business. This map includes how many people will be on your board, how to handle board and shareholder meetings, and the duties of each of your officers. When an issue arises, bylaws can provide clear guidance, minimizing disagreements over how the business will be run.
They give your business legitimacy. In a lawsuit, loan application, or other business dealings, you can point to your bylaws as evidence that you're following proper corporate rules in running your enterprise.
Bylaws are not the same as articles of incorporation—the articles are a short document filed with your state to form your business. Bylaws are a longer, more detailed, internal document. Both for-profit and nonprofit corporations should have bylaws.