Articles Of Organization: A Guide On Must-Have LLC Documents
If you want to do business in a state, you will have to register your company. The first thing you have to do is to decide on the right business entity structure. Then, you follow the process that the state has set for that particular structure.
A popular choice for many starting companies is the limited liability company (LLC). This hybrid structure will protect your personal assets from liability in case the company incurs debts and obligations. At the same time, it allows you to have pass-through taxation.
Starting An LLC
While the whole process and the requirements may vary depending on the state where you intend to form your LLC, there are similar steps that you need to complete.
Step 1: Choose A Company Name
The name of your company has to be distinguishable, so you have to make sure no other business entity is already using it. You can verify this by conducting a business name search in the official database of the state. In most cases, you can do this on the website of the Secretary of State or the agency in charge. You also need to check the naming guidelines to prevent any issues. You will use this name on all formation documents, such as the Articles of Organization LLC.
Step 2: Appoint A Registered Agent
State laws require all companies to have a registered agent. You can appoint an individual or a third-party organization like DoMyLLC. The registered agent will receive all legal documents on behalf of your LLC. Please note that states also have requirements you need to follow when choosing your registered agent.
Step 3: Create An Operating Agreement
Depending on the state where you plan to form your LLC, it may be necessary to create an operating agreement and keep it with all your company’s official records. In some cases, it is only an optional internal document. Regardless, having one can help your company, especially if you have multiple owners. This formation document will lay out how your company will operate. It determines the responsibilities of the members as well as the management structure of the company. It also prevents misunderstandings among members.
Step 4: Submit The Appropriate Paperwork
This step will formalize your registration. You will have to submit a form to the appropriate state agency. It contains important information about your company. It also comes with a corresponding filing fee.
What It Is
Whether it is called Certificate of Formation or Articles of Organization, filing this document is necessary. The state agency needs to file and approve it to ensure that your business operations are legal.
As stated earlier, the filing requirement for registration varies from state to state. Despite that, there are certain pieces of information you have to include on the Articles of Organization LLC.
- LLC Name – Think of a name that reflects the values and vision of your company. Then, conduct a business entity name search in the state database. You also need to include the phrase Limited Liability Company or an abbreviation, such as LLC or L.L.C. You also cannot use a name that will confuse your company for a government agency. There are restricted words as well, so check your state regulations for them.
- Statement Of The Purpose Of The Company – You may need to provide a brief description of your company’s purpose. While some states may require a specific statement of purpose, others accept general statements. In such cases, you can include a general description like the engagement of lawful business to earn a profit. Putting a general statement will also open your company to more business opportunities in the future.
- Duration Of Business – Many states do not require this information. However, there are those that do. If you do not intend to have an LLC that will last perpetually, you will have to specify the time period for which your company will operate. The duration will determine the dissolution date of your company.
- Principal Office Address – The state needs to know the main location of your business. Usually, this refers to the place where your management works or where you keep the books and records of your business. Most states do not accept a P.O. Box.
- Registered Agent – You have to list the name and address of the registered agent that you appointed. Make sure they are available during normal business hours. Their address should also be located within the state.
- Management – There are states that require LLCs to indicate the management style they will use. If you choose the manager-managed option, you can appoint one or a group of managers who will handle the daily operations of the company. They can be members or hired professionals. Meanwhile, in member-managed LLCs, the owners share the responsibility of managing business operations.
- Authorized Signatures – At least one organizer has to sign the documents. You should also indicate the date of signing or preparation of the articles.
- List Of Members/Managers – Some states require LLCs to include the names and addresses of the members and managers. If that is the case for the state where you want to form your company, you will have to keep the list updated.
Getting Expert Help With Your Articles Of Organization LLC
Preparing the proper formation documents is only one of the multiple steps that you need to complete to successfully register your LLC with the state. If you want further information about the formal paperwork in a particular state, talk to one of our representatives.
Once you think you are ready to organize your business, you will have to understand the whole process. You may need to conduct research and prepare various requirements. If you think you need help with the preparation and filing of documents, contact a third-party organization like DoMyLLC. Our team of experts has experience in handling business filing requirements in all 50 states in the country. We can also serve as your registered agent. You can expect personalized solutions that will be suitable for the needs and circumstances of your company.
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