The articles of organization are a public and official document used to create a limited liability company (LLC). The LLC members must file the articles of organization before the relevant state authority (usually the Secretary of State) for approval. Upon approval of the articles of association, the LLC will become an official separate legal and business entity. Each state charges a one-time fee for the filing of the articles of association. To keep the LLC in compliance and good standing, the members of the LLC may have to make other mandatory filings after the creation of the LLC.
The articles of organization outline the most relevant aspects of the LLC, such as the rights, powers, liabilities, and obligations between the members of the LLC and with the company. Although every state has its own regulations, in general terms, the following is some of the mandatory information that the members must include in the articles of organization:
- The name of the company.
- The name of the founding members.
- The business address.
- The company’s business purpose.
- The name of the registered agent.
- The name of the managers and directors, if any.
- The effective start date of the business.
- The duration of the LLC.
[Last updated in December of 2021 by the Wex Definitions Team]