Ready to launch your LLC? Here’s what you need to know first: File your LLC’s articles of organization. This is one of the most important steps in registering your LLC. Articles of incorporation is a document that officially registers your LLC with the state. This document is simple to draft, but missing this step can lead to unnecessary complications and delays.

In this post, we’ll guide you through what to include in your articles of organization and the correct steps to file them with your state.

What Are the Articles of Organization?

The articles of organization are legal documentation you file with your state to show that you are a business. Although similar, articles of incorporation are not to be confused with articles of incorporation. One prime difference is that articles of incorporation are for those forming corporations, whereas articles of organization are for limited liability companies (LLCs). 

The articles of organization are used to officially form your LLC with the state. It includes important details like your business name, address, and information about its owners (members). Filing the articles of organization is required in every state to legally start your LLC.

What to Include in the Articles of Organization

The articles of organization must include specific information about your business. While the exact requirements vary by state, in Iowa, for example, the document requires:

• The LLC Name: The full name of your LLC as you plan to register it.
• Business Address: The physical address of your LLC.
• Registered Agent: The name and address of your LLC’s registered agent.
• LLC Members: Information about the owners of the LLC (including partners or single owners).
• Business Purpose: Some states require a brief description of the business’s purpose, though most allow for a general “any lawful purpose” description.

Why Are Articles of Organization Important?

Filing the articles of organization is mandatory in forming an LLC. In addition, your submitting this document to the state gives you a few secondary benefits:

• It officially registers your business with the state. The state and the world will know your business exists. 
• It establishes your LLC as a business entity separate from its owners. This is essential for providing asset protection. 
• It serves as a public record of the LLC’s contact information and address, to be used when sending lawsuits and other legal notices. 

Why did we say “secondary benefits”? Becoming a registered LLC gives your business certain legal protections and benefits. Because your articles of organization are the pathway to becoming a registered LLC, it is also the pathway to LLC protections and benefits. You can see how important this is. Without filing the articles of incorporation, your business won’t have legal recognition or these protections.

Filing the Articles of Organization with the State

Once your articles of organization are created with all the information needed, it’s time to submit them to your state’s secretary of state. You can often do this online, by mail, or in person.

Filing fees vary by state. In Iowa, for example, it costs $50 to file the articles of organization, with an additional $100 fee for expedited service.

After you submit your articles, the state will process your application and officially recognize your LLC if approved. Processing times can range from a few days to a few weeks, depending on your state.

Common Pitfalls to Avoid

Filing your articles of organization isn’t difficult, but mistakes can delay the process. Here are a few things to watch out for:

• Choosing a Non-Unique Name: Before filing, make sure your business name is unique by searching your state’s business registry. Using a name that’s already in use will cause your filing to be rejected.
• Incorrect Registered Agent Information: Be sure to provide an accurate and up-to-date address for your registered agent. Mistakes here can delay your filing.
• Skipping the Operating Agreement: While not all states require an operating agreement, it’s still a smart idea to have one. This document outlines the internal workings of your LLC and helps maintain limited liability protection. Surge Business Law highly advises having articles of incorporation. In fact, we know it’s so important to the protection of a business that we don’t consider a business a truly limited liability business unless they have this agreement in place.

How to Start a Strong LLC: 3 Things You Need

Before concluding, you need to understand the three you need to start a strong LLC:

1. LLC registration – The state will know your business exists and gives you some protections.
2. Operating agreement – a contract should be customized. It controls how your LLC will be managed. It says that you will manage your business as its own entity.
3. Observe corporate formalities – These are rules that you follow to keep your business strong. When you observe these rules, you show that you are treating your business as its own entity – very important should you have to go to court.

These three LLC formation steps are needed to make your business “legal” and give your business a strong defense should something go wrong. They strengthen your case if you find yourself in court or have to negotiate to settle a disagreement.

Final Thoughts

Filing your LLC’s articles of organization is a critical step in forming a solid business and ensuring its legal protection. Taking the time to prepare and submit this document carefully is easy and, if done correctly, will save you time and hassle down the road.
Surge Business Law helps small and growing businesses form strong LLCs with easy-to-understand and use legal and business advice. Contact us for a FREE Consultation.