Understanding Operating Agreements and Bylaws

As the title implies, understanding legal framework when it comes to your social setting can go a long way into cutting costs. So if you want to live like a budget socialite, then you’ve got to take time to research such things as comprehensive operating agreements and bylaws. However, just so we’re clear, finding out about operating agreements and bylaws shouldn’t take away from your lifestyle per se. It’s just one more way to make you smarter in your financial dealings with others.

Operating Agreement and Bylaws: What Are They?

If you’ve been to law school or have been an executive director for any number of corporations, then you probably already know what operating agreements and bylaws are. However, if you’re new to this whole legal framework in regards to social settings, then you’re probably asking (quite vocally), “What’s the deal, and how important is it?” And this is what is so great about these concepts because not only are they found in the legal system (by way of the operating agreement and bylaws for a business, for instance), but they also apply to the social scene. Case in point.

Let’s say you have a group of friends that frequently go bowling. Occasionally the bowling team will fall apart – meaning someone gets a girlfriend, someone moves away, etc. – and so everyone on the team has to find another league or team to bowl with. Therefore, it wouldn’t be uncommon for such friends to write up an operating agreement and bylaws of their own. And depending on how long you’ve been together, you could have a very interesting operating agreement and bylaws. Could this idea work? Of course. You just have to understand the value of knowledge to be a budget socialite.

Social Impact of Your Operating Agreement and Bylaws

OK, it’s true that most of the time, the only “legality” your operating agreement and bylaws have, at least socially, is if anyone questions the validity of the social agreement. But assuming you’ve got a rare case on your hands, where there is some level of legality, then this is good!

For instance, let’s say that in your operating agreement, you put that everyone pays dues of $10 per week, so long as you show up to play at least twice a month. Then the operating agreement stipulates that the “fine,” so to speak, is $1 for every missed meeting. Suddenly, forgetting how to operate as a team becomes a lot more expensive than simply not keeping in touch, which means you’ll make more of an effort to do so.

Your operating agreement and bylaws don’t specifically list out members or even who is captain or even who is winning or losing the game. But at least you know that when you sign on that dotted line, that you’re literally putting your money where your mouth is, and that you’ll certainly justify each social action you take by referring back to the operating agreement and bylaws for a little guidance.

So there you have it. Now go ahead and read the article on operating agreements and bylaws. Note what they define, their differences, what benefits they hold and more, so you can be that much smarter the next time you get with your social group or bowling team. Remember, as a socialite, you can sing karaoke out at local clubs, or even pass around a big jar for donations, but it’s going to require more than luck and your singing ability if you want to have fun socially.