What Are Articles Of Organization For An LLC?

To establish an LLC, you must file a document called “Articles of Organization” with the state agency responsible for business filings. It’s a simple document that typically contains your business name and address as well as the name and address of a person who can receive lawsuits on the business’s behalf. Depending on your state, the articles might include additional information such as the names of the owners (members) or managers of the LLC and the purpose of the LLC.

The rules and requirements for articles of organization are different for different states. Almost all states have a form you can use, and some states even call the articles by a different name. For example, in Texas, the document for forming an LLC is called a “Certificate of Formation.” Filing articles of organization helps you properly launch both one-person and/or multimember companies.

An LLC has its own legal identity, separate from its owners. An LLC can sue and be sued, own assets, set up bank accounts, sign contracts and take on debt. Operating your business as an LLC offers numerous advantages. For example, members/owners are granted limited liability and are not held personally accountable for the actions/debts of the company. LLCs also enjoy tax flexibility that’s not available to other types of businesses.

However, an LLC does not legally exist until you file articles of organization and have them approved by the state. The articles provide a public record of the LLC’s existence, its name and its contact information. They also provide information about where to send lawsuits and legal notices involving the company.

Start with visiting your state’s business filing website (usually the Secretary of State) to learn more about your state’s requirements for articles of organization. The fee for filing the articles is between $50 and $500 depending on the state. Most states offer editable PDF forms for filing articles of organization. In many states, you can complete the process online.

The information you’ll need to provide in the articles of organization will vary from one state to another. Here’s a list of commonly requested information.

• Business name: Make sure no one is already using the same business name or a similar one before you begin filling out the form. Most states have an online search tool for checking business name availability. Choosing a name that’s already in use can get your form rejected. Be sure to follow your state’s rules for using “limited liability company,” “LLC” or a similar designation in your business name.
• Address of the LLC: Typically, this must be a street address. If you’re establishing an LLC in a state other than your home state, you may need to provide an in-state office address.
• Business mailing address: This may be required if your mailing address is different from your business’s street address.
• Business purpose: It is also known as the statement of purpose. It’s usually acceptable to list a broad purpose such as “any and all business purposes for which an LLC may be organized.”
• Members’ and/or managers’ names: Some states require this information, along with the members’ or managers’ physical addresses.
• The state law: This is a governing law statement specific to your state, called the state statute number, under which your LLC gets permitted to operate. This information is usually preprinted on the form.
• Effective date: If you don’t want your LLC’s creation to take effect right away, you may be able to specify an effective date in the future.
• Registered agent’s details: A registered agent (also called a resident agent or statutory agent) is the person who receives legal documents on behalf of your company. Most states require you to list the agent’s name and physical street address. The address is sometimes called the “registered office.” In some states, the agent must sign the articles of organization.
• Duration of LLC: Your LLC can either be perpetual or indefinite. Perpetual LLCs continually exist without expiration until they’re dissolved. An indefinite LLC calls for a compulsory dissolution date that you need to mention in the articles of organization.

Different states have different options for filing the articles of organization. Many states have an online business portal where you can complete the process online. You can usually also download and fill out paper forms and file them by mail, fax or in person.

If you don’t want to fill out and file articles of organization yourself, there are a number of online services that can handle the process for you. Here are some options:

• Northwest Registered Agent: Offers maximum affordability for small businesses with its one-year free plan that also includes registered agents.
• ZenBusiness: If you appreciate accuracy and don’t trust yourself enough to submit an accurately filled form, then ZenBusiness is your best friend.
• LegalZoom: From providing you with its network of vetted attorneys to refunding your money if you’re unsatisfied with its services, it’s really “got your back,” as they say.

Read more about the best LLC services available for your business in our comprehensive guide.