what is an organizing attorney for llc

The LLC organizer may be an attorney, friend, family member, registered agent, business formation company, or other third parties that help you complete and file the LLC formation documents. There are generally no legal requirements for an organizer to perform any other duty past completing and submitting accurate LLC documents.

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Who is the organizer of an LLC?

Apr 14, 2021 · The LLC organizer may be an attorney, friend, family member, registered agent, business formation company, or other third parties that help you complete and file the LLC formation documents. There are generally no legal requirements for an organizer to perform any other duty past completing and submitting accurate LLC documents.

What are articles of organization for an LLC?

Oct 28, 2020 · LLC members are responsible for the LLC's operations, administration, and debt. An LLC member can be an individual, corporation, foreign entity, or another LLC. Members decide how they will divide the ownership interests of the business among themselves. All states allow for single-member LLCs, so an LLC is not forced to have other members. An LLC member can …

Can an LLC organizer draft an operating agreement?

Oct 16, 2021 · The organizer of a limited liability company is the individual person or business entity that handles the actual formation of your company. The main responsibility of an LLC organizer is preparing and filing your articles of organization with your state government, and the LLC organizer’s identity is usually required information in that formation document.

Who is the member of an LLC?

If you are interested in forming an LLC, you should contact a business lawyer. A business lawyer can advise you as to formation and filing requirements. The attorney can also explain tax and insurance requirements that apply to the LLC. A business lawyer can also represent the LLC in legal proceedings. Share Tweet Share Daniel Lebovic

What is the difference between an LLC member and organizer?

What is the difference between a member and an organizer? An LLC member is an individual or entity holding a membership interest in a limited liability company. An LLC organizer is the individual or entity responsible for filing the paperwork with the state to form a limited liability company.

Is an organizer the same as a registered agent?

Organizers and registered agents are not one and the same. Organizers usually perform duties limited to the initial creation and filing of the LLC documents. They cannot share in the profits or responsibilities of the LLC unless they are members.

What is a statement of organizer?

The Statement of Organizer is an internal document formally relieving the organizer of their duties and assigns the LLC ownership to its members. In effect, the LLC members are the owners, not unlike the shareholders of a corporation.

How do I remove my LLC organizer?

The only way a member of an LLC may be removed is by submitting a written notice of withdrawal unless the articles of organization or the operating agreement for the LLC in question details a procedure for members to vote out others.

What do organizers do with LLC?

They can be assigned other tasks as allowed by state law. Some states allow organizers to act as an LLC's registered agent and receive legal paperwork for the company. They are also allowed to reserve a business name before the formation documents are submitted and assist in drafting the formal operating agreement that dictates how an LLC is run.

Where is the organizer section on an LLC form?

The LLC formation documents have an organizer section at the bottom of the form. This section varies depending on the state where the LLC is being formed. However, it is consistent that information about the LLC members will not be listed here.

What is LLC in business?

LLC is an acronym that stands for limited liability company. An LLC is a business entity that combines aspects of a corporation and a partnership. The owners of an LLC are referred to as members. Ownership of an LLC does not have the same restrictions as other business structures, so LLC members can include: 1 Individuals 2 Corporations 3 Entities outside the United States 4 Other LLCs

What does LLC stand for?

LLC is an acronym that stands for limited liability company. An LLC is a business entity that combines aspects of a corporation and a partnership. The owners of an LLC are referred to as members. Ownership of an LLC does not have the same restrictions as other business structures, so LLC members can include: Individuals.

Who files LLC paperwork?

An LLC organizer files the business's formation documents. The paperwork is typically filed with the Secretary of State's office , and every LLC is required to have at least one organizer. After the LLC is set up and formed, the organizer usually gives his or her power to the members of the LLC.

Can an LLC have multiple members?

All states allow for single-member LLCs, so an LLC is not forced to have other members.

What is an LLC operating agreement?

An LLC's operating agreement stipulates how members vote, what their duties are, and how profits are divided up. Such agreements are not required by each and every state. However, drafting an agreement is a practical option to help clearly lay out how an LLC operates.

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What Is an LLC?

Before we address the role of the limited liability company organizer, we should probably touch on what an LLC is. An LLC is a business entity that is owned and operated by one or more people, and its most popular attribute is the limited liability protection it provides.

What Is an LLC Organizer?

The organizer of a limited liability company is the individual person or business entity that handles the actual formation of your company.

Who Can Be an LLC Organizer?

Most states don’t have many requirements for being a limited liability company organizer, aside from an age requirement in several states that requires an LLC organizer to be at least 18 years of age.

Conclusion

Even though the limited liability company organizer is a tremendously important role, there aren’t many rules or regulations regarding who is legally allowed to serve in this position. The most popular routes are to either DIY your LLC’s organization, or to hire a professional LLC organization company to shoulder this load on your behalf.

How to create an LLC?

Forming an LLC requires following a series of steps. These include: 1 Determining who will be members of the LLC. 2 Creating a unique business name. 3 Filing the articles of organization. These documents are usually filed with your state’s Secretary of State. 4 Filing an operating agreement, if required by state law.

What is an LLC?

What is a Limited Liability Company (LLC)? A limited liability company (LLC) is a business entity. A variety of business entities, or forms, exist in the United States. Other examples of business entities include partnerships, and corporations.

What is a partnership liable for?

Partners in a partnership are personally liable for debts incurred by the partnership. These debts include debts incurred by another partner. This means that if a partnership owes money to a creditor, the creditor can “come after” the individuals’ own individual real and personal property to satisfy the debt.

Is LLC income taxed?

Unlike corporations income, LLC income is only taxed once. In other words, the income “passes through” the LLC, and is only taxed at the individual member level. Partnerships, sole proprietorships, and limited partnerships, also have this tax structure. Limited liability companies differ from corporations in terms of ownership structure.

What is LLC in business?

Forming a LLC protects individual assets, limiting liability to the LLC’s own resources. By forming an LLC, a small business owner, if sued, will not have to pay out of personal assets. Individuals who are interested in forming a business with minimal paperwork and costs should also consider forming an LLC.

Can an LLC be sued for negligence?

While the LLC form protects members’ personal assets from a lawsuit, the situation is different if the lawsuit involves a claim of LLC member negligence. If a court determines an LLC member has acted negligently, the member can be individually liable for that negligence.

What is LLC filing?

LLC formation requires filing a document called “articles of organization,” and a fee, with the state. This fee is typically smaller than the fee required for forming a corporation. LLC formation usually requires less paperwork to be filed with the state, than does corporation formation.

What is an operating agreement for an LLC?

The LLC’s Operating Agreement is an agreement among the members of the LLC. It spells out who owns the LLC, how much they own, how the LLC is managed, how profits are distributed, how taxes are paid, and more. The state simply forms your LLC according to their laws governing businesses.

What are the members of an LLC?

LLC Organizer vs LLC Member 1 you 2 other LLC members (if applicable) 3 friend or family member 4 registered agent/resident agent 5 attorney 6 accountant 7 document filing company 8 anyone really (as long as you give them authorization)

Is a multi member LLC a partnership?

More specifically, for federal tax purposes with the IRS, by default, Multi-Member LLCs are taxed as a Partnership. But they are not Partnerships. And no, there are no disadvantages to having an LLC taxed as a Partnership versus an LLC taxed as a Sole Proprietorship (the default status for Single-Member LLCs).

What is LLC Articles of Organization?

The Articles of Organization is the document that you’ll file with the Secretary of State’s office (or similar division) in the state where you are forming your LLC. Depending on the state, the LLC Articles of Organization may also be called a Certificate of Organization or Certificate of Formation … but they all do the same thing: they register ...

How much does it cost to file an LLC?

The average LLC filing fee is about $132 in the U.S., with the range of fees being $40 on the low end to $500 on the high end .

How long does it take to get an LLC approved?

Most states will process and approve your LLC filing in about 1 week (or sometimes even a few business days). Once you receive back your stamped and approved Articles of Organization (or Certificate of Organization ), your LLC is officially in existence and you can begin conducting business in the state.

What is an organizational document for LLC?

Organizational Documents for LLC. Organizational documents for LLC primarily include an articles of organization that creates your LLC. An LLC is a legal entity created within the state you reside in and mixes aspects of a partnership and corporation. In the same manner as a corporation, LLC owners cannot be held liable for debts incurred by ...

What is an operating agreement?

Operating agreements are generally not mandatory in most states, but you should draft one to ensure that you manage the LLC properly. An operating agreement should contain the following pieces of information: 1 Roles and duties of each member 2 Compensation plans 3 Rules and guidelines

What does "home office" mean?

This means the address in which the business will primarily operate. If you own a home business, you may label your home as your main business center. To get home office deductions, a portion of the home should be used solely for that business or trade.

Do I need a registered agent for LLC?

Such documents may include court paperwork or documents from state authorities. You must have a registered agent in every state where your LLC operates. Registered agents may be a member or a person outside of the business approved by the state. You can also choose a company or lawyer to be your registered agent.

Do you need an operating agreement for LLC?

Operating agreements are generally not mandatory in most states, but you should draft one to ensure that you manage the LLC properly. An operating agreement should contain the following pieces of information:

Can I file an LLC on my own?

Members would then file such profits and losses on your individual tax returns. Moreover, you do not need help from an attorney to create an LLC, and you may file the necessary legal documents on your own. On the other hand, you can use a professional formation service to create an LLC on your behalf.

What happens if you create an LLC?

As the name implies, when you create an LLC, your own personal liability is limited for the activities of the business. In other words, if you formed an LLC for your fitness business, and someone got hurt while at your business, they might decide to go after you in court. If they did, your liability would be limited to the assets of the business;

What is LLC business?

Final takeaway: An LLC, or Limited Liability Company, is the preferred business structure for many small- to medium-sized businesses because of its limitation on liability, as well as easy tax structure .

What is an article of organization?

As the name implies, Articles of Organization are the document that organizes the structure and basic information of the LLC. "Articles" in this case doesn't mean a series of articles like you might read on the internet. Instead, it means short contractual clauses that are listed one after another in a single document.

What is an operating agreement?

An Operating Agreement is much more detailed than Articles of Organization. Although they may overlap a bit on some relevant information (such as the name, purpose, structure, etc.), the Operating Agreement describes how the governing decisions for the LLC are made and how the members or managers relate to each other.

What does LLC stand for?

LLC stands for "Limited Liability Company. ". This is usually the preferred form of business for most solo entrepreneurs and small- to medium-sized businesses. The reason that many people prefer the LLC is because of its primary benefit feature: limited liability.

Can an LLC be an LLC without an Articles of Organization?

In fact, the Articles of Organization birth your LLC! No matter the state, a new business can't form as an LLC without a well-drafted Articles of Organization.

What is the difference between a professional LLC and a regular LLC?

The main difference between professional and regular LLCs is that all the members of a professional LLC must hold a professional license.

How many members does an LLC have?

Many LLCs have only one member, but an LLC can have five or ten or hundreds of members. LLCs can be managed by their members--that is, all the owners share responsibility for the day-to-day running of the business. LLCs also have the option of designating one or more managers to run the business.

What does LLC stand for?

LLC stands for "limited liability company.". An LLC is one type of legal entity that can be formed to own and operate a business. LLCs are very popular because they provide the same limited liability as a corporation, but are easier and cheaper to form and run. For an introduction, see " LLC Basics ".

What is personal asset protection?

Personal asset protection. An LLC provides its owner or owners with limited liability. This means that means you—the LLC owner—are generally not personally liable for any debts incurred by your LLC business or most business-related lawsuits.

What is an LLC member managed?

Most LLCs are member-managed. With this approach all the members (owners) of the LLC share responsibility for the day-to-day running of the business. This approach is more common in part because most LLCs are small businesses with limited resources and they don't need a separate management level to operate.

What is the tax rate for a C corporation?

The C corporation tax rate is 21%, much lower that of most individual rates. With S corporation treatment, the LLC remains a pass-through entity, with profits passed through the business to the owners to be taxed at their individual tax rates.

What is a sole proprietorship?

A sole proprietor personally owns a business and all its assets. There is no separate business entity involved. The sole proprietor is personally liable for all business debts and lawsuits. This means that creditors or lawsuit plaintiffs can reach the proprietor's personal assets to satisfy a debt or judgment.

What is an organizer in an LLC?

The name of each organizer. An organizer is someone who acts to form an LLC. The organizers may or may not be owners (members). Restricted professional companies (if the LLC is going to provide specific professional services, you will need to designate the profession.

What is LLC in business?

A limited liability company (LLC) is a business that must be registered with a specific state. To properly register a new LLC in your state, you must file articles of organization . All U.S. states have a required formation document for an LLC. Some states call this document a different name from "Articles of Organization:".

How to file articles of organization?

Step 1. Visit Your State's Secretary of State Website 1 Check out the LLC articles of organization form. 2 See if the state allows online filing of this form. 3 Check the filing cost. Filing cost can be anywhere between $50 and $200, depending on the state.

How long do you have to publish articles of incorporation?

Publishing must be in two newspapers within 120 days after the effective date of the articles. 3 .

Which states require a certificate of organization?

Certificate of Organization: Connecticut, Idaho, Iowa, Massachusetts, Pennsylvania, Utah. The specific documents for each state may have a different name and each state may require different information, but the result is the same in each state.

What is a registered agent?

A registered agent must be designated for the company. The Registered Agent is the person responsible for sending and receiving official paperwork for your business. The registered agent just passes the paperwork on to your business for you to handle.

Do you need an annual report for a business?

Most states require an annual or biennial report - with a fee - to keep the business active. Georgia, for example, says that the purpose of annual registration is to provide a current record of the business management structure, correct mailing address, and registered agent's name and address.