Articles of organization are used at the state level to create a limited liability company (LLC). It is part of the legal documents required to prove the establishment of an LLC. The articles of organization establish the duties, powers, right, liabilities and other aspects and obligations of the company between its members and the members and the LLC itself.
Articles of organization is a legal document used in the creation of companies. Read on to find out what they contain and how they are created.
What are articles of organization?
The articles of organization are like the articles of incorporation. They are also known as the “certificate of formation” or the “certificate of organization”. When an LLC files its organization, it must pay the prescribed fee to the state.
The information contained in them includes the name and address of the LLC, the names and addresses of its members, managers, directors and organizers, the name of the LLC’s registered agent and a statement regarding the purpose of the business.
Although new LLCs are required to file their articles of organization with the state, there are other requirements that cities and counties have when it comes to their own zoning and business licensing regulations. Businesses in certain industries like childcare and food services have to comply with stricter regulations compared to others.
Regulations regarding Articles of Organization
Depending on the area in which an LLC proposes to carry out its business objectives, it will have to comply with the local regulations of that zone. But for filing with the state, many states have forms that can quickly be filled in rather than preparing the articles of organization from scratch. Even though the articles of organization of most states are the same, there may be a few clauses and requirements that may differ.
LLCs usually get an experienced lawyer to help them prepare and file their articles of organization. In New York, an LLC can prepare its agreement of operations while filing its articles of organization or within 90 days of doing so.
Once they are filed, the company registrar or the secretary of state of the state in which the articles of organization of an LLC are filed reviews and approves them. After approval, the articles of organization form the legal foundation on which the LLC becomes a registered business entity. From then on, the company is legally bound by the laws of the state in which it is registered.
Contents of articles of organization
All the basic information for every article of organization document remains the same. Here’s a list of what’s normally required:
- The name of the LLC and the address in which it intends to carry on its primary business.
- The nature of the business of the primary activities the LLC proposes to carry out.
- The names and addresses of the LLC’s members, directors, and managers.
- The name and address of the registered agent who is authorized to collect or accept legal documents for the LLC.
