The articles of organization for an LLC is an important document to start your limited liability company (LLC). The articles are a public document necessary for creating your LLC in the state of your choice.
What Are Articles of Organization?
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.
Why Are Articles of Organization Needed?
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.
