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When forming a limited liability company (LLC), the organizer is the person or entity who signs, and files the Articles of Organization (also referred to as a Certificate of Formation in some states) for the LLC. Generally, they organize the filing of the LLC.
Thousands of LLCs are formed each day. However, most of our readers and small business owners tend to have a few common questions before they get started with the formation process, one of which is regarding the role of LLC organizers.
The LLC’s organizer is the person or business responsible for setting up the LLC.
An LLC Organizer does not have to be a member (owner) of the LLC, but often they are a member.
Regardless of where you form your LLC, how many members you have, or what type of industry you’re in, you need an LLC organizer.
You can be the organizer of your LLC or hire an experienced professional service to do it for you.
The most important function of an organizer is to ensure the Articles of Organization are filed correctly and within the state’s laws.
An LLC Organizer is the person (or company) who takes responsibility for, fills, and files, the LLC formation documents with the state and other agencies to ensure proper LLC formation.
They are the ones who are “organizing” (filing) the LLC. They fill out the paperwork to form the LLC, sign it, and pay any necessary fees.
The responsibilities of an LLC organizer may differ from state to state, but their primary and most important function is to make sure the Articles of Organization are filed correctly and in accordance with the applicable laws of the state. Depending on the state of formation, these articles may be alternatively referred to as a Certificate of Organization or a Certificate of Formation.
Usually, the Articles of Organization are submitted to and approved by the Secretary of State, or a relevant company registrar. These documents contain essential company’s including the LLC’s name, registered address, and a list of its members, among other pertinent details. Once the organizer has successfully filed the Articles of Organization, their primary function are usually complete.
Once the LLC is formed, the organizer essentially relinquishes control of the entity to the LLC’s members, which is similar to how a corporation’s initial incorporator relinquishes control to the initial board of directors.
If the organizer is not a member, then the members can entrust the organizer with additional tasks. For example, some LLCs entrust their organizer with the tricky task of drafting the operating agreement. To be clear though, beyond the initial formation of the business, there are no formal responsibilities or requirements for LLC organizers to fulfill.
In most states, there are no requirements at all regarding who can be an LLC organizer. However, other states require that the organizer is a legal adult at least 18 years of age. An organizer can be any person or entity that prepares and files the Articles of Organization on behalf of an LLC. Examples are:
You should check your state’s guidelines prior to appointing your organizer to familiarize yourself with the exact requirements, but in most states the regulations are quite loose.
Other than that, an organizer can be practically anyone, although some options are certainly better choices for your business than others. While some people choose to enlist a friend or family member for this role, or one of the members of the LLC, we prefer hiring a professional who knows what they’re doing. This can be a registered agent, an attorney, or an online LLC formation service.
The main difference between an organizer and a member is that, an organizer can be anyone or company (not necessarily a member) designated to file the initial paperwork necessary for formation, whereas the only people that can be a member of your LLC are you and anyone else who is a co-owner of the business.
The members are the actual owners of the business, and they receive a cut of the profits. As for the LLC organizer, their primary responsibility is to file the initial paperwork for the LLC. If the organizer is not also a member, they will not have any additional responsibilities, and they also would not get a cut of the profits.
If you don’t have anyone in your LLC’s membership group who has experience as an organizer, we typically recommend hiring an online business formation services provider to handle this role on your behalf.
There are several benefits of hiring a professional LLC organizer service. One notable benefit is the expertise and experience these services provides have, which can greatly help you navigate the process smoothly and error-free. An experienced business organizer can help you file paperwork correctly the first time, avoiding costly mistakes like having your paperwork rejected, thus saving you both time, money and valuable resources.
Their price points are significantly more affordable than an attorney’s fees, and they still provide trustworthy service.
That said, the issue with these companies is that there are so many of them, so it can sometimes be hard to decide which one you want to use. But if you ever find yourself in such situation, we recommend you use Zenbusiness for your LLC formation services.
The importance of the limited liability company organizer can’t be overstated. They are tasked with ensuring that your LLC is formed correctly, and that your business is set up for success from day one. Any mistakes made by your organizer could put your business in serious jeopardy.
While plenty of people do serve as their LLC’s own organizer, we strongly advice you to hire someone who has experience in this role. You could hire a business attorney to handle the organization of your company, but this is usually an expensive option.
All said, we prefer you hire a trustworthy online business formation service/LLC organizer for your paperwork, as they strike the perfect balance between being reliable and experienced, without costing an arm and a leg.
In many cases, the organizer is also a member of the company. This is especially true in situations where you have a single-member LLC — for one-person businesses, it’s often easier and cheaper for the owner to simply handle this responsibility themselves. It’s not unusual at all to see members of a multi-member LLC serve as the organizer either, but it’s a bit more common for single-member businesses.
Generally, an LLC organizer has no other duties or responsibilities related to the limited liability company after filing the Articles of Organization. Unless they’re a member of of the LLC, organizers have no requirements other than to prepare and file the Articles of Organization.