Jack DonaldLooking forward to preparing your LLC formation documents to launch it? Hold on a sec! We have a few instructions that can help you! Read on to know more.
Once you have drawn up your business plan, discussed everything with your partners and employees, made in-depth research, developed branding, and it feels like you’re fully prepared to establish your business, you still have to file a special document called the “Articles of Organization” with the Secretary of State. In some states, it may go by a different name, e.g. the Certificate of Formation or the Certificate of Organization. It’s an essential document required by the state for proper LLC formation. After it’s filed and approved by your state authorities, your LLC can be considered an officially registered business within that state.
Apart from the name, the exact filing process can vary from state to state, and you may have some questions about it. In this article, we will tell you about the Articles of Organization meaning, what information they include, and how you should file them.
Read on to better understand this important document and successfully continue the LLC formation process.
Also, check out our guide below to know how to prepare a file for the Articles of Organization in different states.
Note: If you don’t have enough time to file your LLC or just want everything done fast and properly, you can hire an online LLC service like ZenBusiness ($49) or LegalZoom ($79). They will take care of all the paperwork so you can focus on what’s important.
What Are Articles of Organization?
No matter which state you choose for your LLC, your company has to be registered. This is required by any state before you can start any business activities. This is how the state government keeps a record of your LLC’s basic information, including your LLC’s name, ownership, purpose, address, contact information, etc. After filing the Articles of Organization, you put the mentioned information on the state’s official records, in return, they authorize your LLC for business.
Consider the Articles of Organization the key that makes your LLC visible in the eyes of the law and thus allows you to legally run your business.
Alas, there’s no single Articles of Organization form for each state, though it could be quite convenient. However, each state has a unique-looking form and custom filing procedures for LLCs. However, typically, the following basic information is required to set up an LLC in any state:
- Company name and legal address (principal place of business) of your LLC. You should provide information on the main location of your business (headquarters), it’s where the company’s management works and where the records/books are kept. If you run your business from home, you can list your home office as your principal place of business. As for the name, it must be 100% different from any of the existing business names in your state. You will have to check the name and see if it’s available, you can also reserve it if you want. Moreover, it should indicate an LLC designation at the end (e.g. “LLC” or “L.L.C.”). Some states also don’t allow certain words in an LLC’s name, e.g. “bank,” “trust,” or insurance.” ;
- Statement of purpose (optional for some states). Usually, a general “to engage in any lawful business for profit” statement is acceptable for most states. This is how you can also save some “room” for your future business opportunities that you couldn’t have alleged at the formation stage;
- Registered agent’s name and official address. A registered agent is a must-have for every LLC in every state. This person will receive important legal documents from the state on behalf of your company. The agent (can be an LLC member, state-approved service, or even your family member who is old than 18) must be physically located within the LLC state.
- Duration (optional for some states). You can state a specific time period, for which your LLC will operate. Some states also assume a perpetual duration by default (if none is indicated).
- Name(s) of your LLC’s owner(s), member(s), manager(s), organizer(s).
LLC managers and organizers are two different roles. The organizer can be an individual or a business entity that files the Articles of Organization with the state. It’s often an LLC owner or member. Sometimes, it can also be a business attorney or an online LLC formation service.
An LLC manager is someone that you hire to manage your company. When forming an LLC, you can choose whether your LLC members/owners or outside managers will handle the every-day management. If you hire outside managers, you will have to list their names on your formation documents.
Do You Need to File Articles of Organization?
Yes, because you’re an LLC. The Articles of Organization is not required for every company operating in your home state – only LLCs need them. Thus, if you plan to launch a corporation, general partnership, or sole proprietorship, you’ll need to check with your state’s filing requirements for your chosen business entity type.
Moreover, if want to run a business in a state other than the one where your LLC was formed (in such case, it’s called a “domestic” LLC), you’ll have to foreign-qualify it instead. Now this will require a different form filing. Check our other guide on foreign LLCs for more information on that.
How Do You Prepare Articles of Organization?
There’s actually nothing to be afraid of when it comes to Articles of Organization preparation. Even though it’s one of the most essential documents in the LLC formation process and, we believe, it may look quite complicated to novice entrepreneurs, the preparation process is often fast and painless. Especially, if you have collected all the required information in advance.
Plus, each state has its official templates, so you just need to fill in the appropriate blanks. Stay focused, though, because you don’t want any mistakes. Make sure you enter all the required information precisely, closely following every filing direction. One mistake – and your Articles of Organization can be rejected, and you will have to start all over again.
If you have a lot of responsibilities and your to-do list is too long, you might want to consider using some help from the side. Fortunately, there are a couple of options you can choose from.
- Business lawyer. Plenty of entrepreneurs hand over the Articles of Organization to lawyers. While these experts have in-depth knowledge of LLC procedures to make you rest assured that your Articles of Organization will be fine, their prices can still bite.
- LLC formation service. These guys can take care of your Articles of Organization, business maintenance requirements (e.g. annual reports and/or franchise taxes), and registered agent responsibilities. LLC formation services are a famous choice among busy entrepreneurs in the U.S. Such service providers greatly facilitate proper filing procedures for an affordable cost.
If you feel interested, check out a few of the most reliable and affordable service providers below:
- ZenBusiness ($49 + state fees). This provider has the best basic features and overall value online. ZenBusiness offers speed and a one-year-free registered agent service, along with great customer support. The service provider has very positive online reviews and has helped form thousands of businesses, even though they can’t boast an extensive track record.
- IncFile ($0). IncFile is an outstanding and user-friendly LLC formation service on multiple fronts. You can expect reliability, speed, and transparent fees. It’s a great provider for small businesses or if you’re on a tight budget. However, their low prices don’t in any way mean poor quality service. You actually get premium customer support, clean website design, and simple navigation tools, and an included registered agent service (free for 1 year). IncFile’s customer feedback is positively impressive, with a large number of online reviews and stunning average rating scores.
- Northwest Registered Agent ($225). Like IncFile and ZenBusiness, Northwest includes one year of registered agent service along with formation services. The difference? Northwest doesn’t have any packages and locally scans every document they receive as your registered agent. In fact, most of their competitors only scan the governmentally-required ones. They also offer a personalized customer support system, which is quite rare for the industry. This ensures your LLC is in good hands.
Hiring one of these three providers above will ensure proper and timely filing of the Articles of Organization. This is how you can save yourself some time to create important business plans and improve your strategies or simply kick back and watch a movie!
Articles of Organization Filing Cost
Every form of the Articles of Organization implies a certain fee, and its price depends solely on your LLC’s formation state. Thus, some states can charge around $50, while others will require as much as $200 or even $500. You can pay by cash, check, money order, MasterCard, Visa, or American Express. With that said, make sure you have some money set aside before filing your Articles of Organization to avoid any unpleasant surprises. You can also check our in-depth guide of LLC formation costs for every state.
Summary
Without the Articles of Organization, your LLC won’t be authorized by the state and will stay a promising business idea. They are vital to your business success because they will allow you to put your LLC on record with the state authorities.
Remember that if you don’t want to make any mistakes with your Articles of Organization or your business schedule is fully packed, there’s always a way out. Thus, you can hire a business lawyer or an online LLC formation service that can be really helpful and save your time.
If you are in doubt about the best formation service to choose – take it easy – each option comes with certain advantages and disadvantages. We have them in our comparison guides so you can always compare, say, ZenBusiness, IncFile, and Northwest Registered Agent to LegalZoom, a leading service provider with many years of experience.
- ZenBusiness vs LegalZoom
- IncFile vs LegalZoom
- Northwest Registered Agent vs LegalZoom
We are sure that after reading this article you can create a great action plan for filing the Articles of Organization. Remember that it’s nothing too complex – you can always address professionals and avoid any mistakes. Next thing you know, your LLC is up and running!
