Articles Of Organization

Articles of Organization (sometimes called Certificates of Organization or Certificates of Formation) are the document by which limited liability companies, known as LLCs, are established, state by state. In order to begin any official business in any state, the organizers of an L.L.C. must let the local government of that state know that they plan to do business there. Many small- to medium-sized business opt to form limited liability companies. Sometimes, even one-person businesses choose to form limited liability companies to protect their assets in a certain way.

LLC stands for "Limited Liability Company." It is a business designation that relieves its owners of personal responsibility for their company's debts or liabilities. Instead, the responsibility falls on the LLC, meaning the firm is its own legal entity. In the event of bankruptcy or a legal dispute with the business, LLCs protect owners' personal assets like bank accounts, homes, and cars. For this reason, it is usually the preferred form of business for most solo entrepreneurs and small- to medium-sized businesses.

The Articles of Organization is not generally a very complicated document. There doesn't need to be too much information already established about how the L.L.C. will plan to do business. The only real requirements for Articles of Organization across most states are that the document sets out basic information about the new LLC like the LLC's name, address, registered agent, and structure.

Articles of Organization do vary immensely across states, however, so make sure the correct state of business is chosen for the new LLC. For more information on this topic, please see the guide What are Articles of Organization for an LLC?.

How to use this document

This document can be used once organizers have decided to form a Limited Liability Company. It can be created either before or after the organizers have filed for and recieved a Federal Identification Number from the gorvernment. These Articles of Organization will help compile all the information needed in whichever specific state the L.L.C. will be formed. Be aware, however, that some states have extra requirements for their Articles of Organization filing, such as the accompaniment of a cover letter or an extra consent form. This means that while this document will be what is needed for the actual Articles of Organization, additional documents may be required to complete the formation of the LLC, which are not provided here. Before attempting to complete any filing for the Articles of Organization, check the requirements of the specific state where the L.L.C. will primarily do business.

In this document, the identifying details of the LLC will be entered, such as name and address. Then, there will be a choice as to whether the LLC will be a professional LLC, made up of members who are subject to professional regulations in their careers (like physicians or attorneys). If the LLC is a Professional LLC (also sometimes called just a PLLC), the structure of the document may change a bit to ensure that it continues meeting all necessary requirements.

When this document is filled out, the requirements for signature will be dependant upon the state. No matter what, it will need to be sent in its completed form to the state government where the LLC is being formed.

Applicable law

Articles of Organization are subject to the laws of individual states. There is no one federal law covering the requirements for Articles of Organization. This is because each individual state governs the businesses formed within that state.

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