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From time to time we will post valuable information pertaining to corporate record keeping and compliance issues.

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Smart Way #10: Make sure you follow the bylaws or operating agreement.

Remember, bylaws and operating agreements are binding contracts between shareholders/members. If the shareholders/members disregard the contract, they are -- in so many words -- admitting the entity doesn't exist apart from themselves. If the shareholders/members don't respect the entity's individuality, neither will the court.