Articles of organization (also known as articles of formation, or the certificate of formation) are the legal documents filed with the state to create a limited liability company (LLC). This document is an official form that must be filed with the state in which the business will operate in order to legally establish the company and to keep it in good standing.
It’s important to note that each state has its own laws and regulations related to forming and operating an LLC. This means that every LLC must adhere to the laws of the state in which it will be doing business. Additionally, it’s the responsibility of the LLC members to make sure that all article of organization filings are up-to-date in order to stay in compliance with the law.
What Do Articles of Organization Include?
Articles of organization generally include information such as the date the company will be formed, the name of the company, the purpose of the company, the business address, the registered agent name, the name of the managers or members, the amount and type of ownership shares, and other relevant information.
Depending on the type of LLC, and the state in which the LLC is formed, the articles of organization may also include provisions about how the LLC will be managed, how profits will be distributed, when and where meetings will be held, and how members will have decision-making powers.
Why Are Articles of Organization Necessary?
Articles of organization are necessary for creating an LLC because they provide legal protection for the members of the LLC. Filing the articles of organization with the state creates a legal relationship between the LLC and the state, and also provides the LLC members with protection from personal liability for the debts or liabilities of the LLC. Additionally, having an up-to-date articles of organization in each state in which an LLC does business is necessary to protect the LLC from potential legal issues.
How Often Should Articles of Organization Be Updated?
The articles of organization should be updated whenever there are changes to the LLC that require a change in the state filings. This may include a change of address, a change in the ownership structure, a change in the members or managers, or any other changes that would require an amendment to the articles of organization. This ensures that the LLC is always in compliance with the law in the states in which it is doing business.