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An LLC is the name given to a company that is formed by an individual in the United States. Each and every day, new ones are formed all across the country. Maybe you are here because you are trying to become one of the newest LLCs!
If you want to form an LLC, you will need an organizer, as it is required by law for all LLCs to have one. But, the good news is, it isn’t a hard position to explain or fill, so you should have no problem becoming the organizer for your own LLC or hiring someone to do so on your behalf.
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Read on to learn more about LLCs, their organizers, and how to have success when you open your very own LLC.
What is an Organizer of an LLC?
The name “organizer,” in the terms of an LLC, pertains to the person who handles all of the paperwork involved in forming your company. This paperwork can include filing the articles of organization and associating the name of the LLC with the owner.
The organizer of an LLC is also the individual that will be the liaison with the state on behalf of the company. For example, if there are taxes that need to be paid, the state will often send a letter to the organizer of your LLC.
Generally, the organizer of an LLC is also a member of the company themselves, especially if you don’t have a lot of money to hire employees just yet. Most sole proprietor LLCs are also the organizers of their LLCs.
When you are filling out the application for your LLC, you will see a place to input the information for the organizer. If it is just you working for your company, then congratulations, you are the organizer of your LLC.
Who Should Be the Organizer of an LLC?
If you are forming a multi-member LLC with friends or family, then one of the individuals needs to be designated as the organizer. This individual should be someone who is willing to be the organizer and has a little information about how to file an LLC.
Most states require by law that the organizer of an LLC is at least 18 years old. Otherwise, almost any individual is qualified to be the organizer of the LLC.
But, that being said, the best person to choose as your organizer is someone who has a little experience forming an LLC (if that person exists), as there is some paperwork that needs to be filled out. This is always easiest if the person has done it before. This individual should also have an idea of the local LLC laws. This means that someone in your LLC that has formed one in another state may not be the best candidate.
If none of you are experienced, then choose someone who is good with paperwork. There are no liability implications for being chosen as an organizer above the other members of the LLC.
Who Can Be the Organizer of an LLC?
Are you wondering who can be an organizer of your LLC? Well, there are a whole lot of possibilities to choose from! Below is a list of people who could be your organizer for your LLC.
- Another member of the LLC
- A relative of yours
- A friend of yours
- An attorney
- An LLC Formation service
- An accountant
- Another LLC
- A Registered Agent
This list isn’t exhaustive, but basically, anyone over the age of 18 that you trust with filing paperwork can be the organizer of your LLC.
Can You Hire an Organizer?
Maybe you can’t pick between you, or none of you feel you can fill out the LLC paperwork properly. Don’t worry, as it is possible to hire a professional organizer for your LLC.
There are many lawyer's offices as well as LLC service offices that offer to serve as an organizer for LLCs. While these services aren’t free (and likely aren’t cheap), they can go a long way towards taking stress off of you when it comes to forming your LLC.
Before you hire any of these services, ensure you check for reviews, as well as the legitimacy of the company. If you have the option to go with non-lawyer help, this is typically cheaper, and since you don’t need a lawyer to open an LLC, why not save a little money where you can?
What is a Registered Agent?
One type of organizer for an LLC is called a registered agent. The registered agent will go far beyond what a basic LLC registration service will provide.
An LLC registration service will help you register your LLC and may help tell you when and where to pay fees to the government. They may also receive mail from time to time on your company’s behalf. But, generally, an LLC registration company finishes its job when your LLC is formed.
If you want someone to be with your company through the life of your company, then it is recommended to hire a registered agent, which is an organizer that also stays with you for the life of the business. They will typically accept documents on behalf of your company on an ongoing basis.
Some LLC formation services are also registered agents. This is something you will want to verify before choosing a formation service, depending on the level of service you are expecting. Some LLCs enjoy having a registered agent, while others just want help with the formation and then want to handle all the matters themselves.
Can a Registered Agent and Organizer Be the Same?
It is possible that your organizer and your registered agent will be the same person. You can even be the organizer and the registered agent for your own LLC, you just need to meet the following requirements:
- Have a valid street address (no P.O. boxes allowed)
- Be 18 years of age
- Meet all the requirements for your specific state
Many people choose to use a registered agent when they are forming a business out of state. This way, they will have a local address in the state where the business is registered as well as a local contact point. This is ideal if you want to start a business but think you may need to move states in a couple of years. Thus, the registered agent can stay in the state where your business is, and you won’t have to close it down just because you moved.
Should You Mention the Organizer in Your Business Agreement?
It is absolutely critical that you outline the role of your organizer or registered agent in your business operating agreement. This will let them know, as well as all members of your LLC, what their expected role in the business is. This will additionally make it easier to dissolve your LLC later if necessary.
Even if you are the only member of an LLC and acting as the organizer, it is a good idea to have a business agreement. This simply makes it easier in the future, whether you decide to hire others to work at your business or sell your LLC entirely. It is also a good idea to hire lawyers to look over your business articles to ensure they are legally sound.
Remember, the operating agreement should include the following information about your company:
- LLC Name
- LLC Contact Info
- Outline of management structure
- Capital contributions
- Profit divisions
- Voting rights
While it may seem a bit silly to outline all of the above when it is just you, it really can go a long way toward helping you avoid future issues as an LLC.
Final Thoughts on What is the Organizer of an LLC
Overall, the organizer of the LLC is someone who will be a contact point between your company and the state. Usually, they can be anyone over the age of 18, but it may be worthwhile to elect an organizer that has some experience forming LLCs.
If you don’t want to stress over the formation of your LLC, then it’s a good idea to hire a service to become your organizer. If you want an organizer to stay with you long term, then find one which offers registered agent services. No matter who you decide to make your organizer, just make sure their role is outlined in the business agreement to avoid future potential problems.
Reference Legal Explanations
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"What is an Organizer of an LLC?". Legal Explanations. Accessed on December 10, 2023. https://legal-explanations.com/blog/what-is-an-organizer-of-an-llc/.
"What is an Organizer of an LLC?". Legal Explanations, https://legal-explanations.com/blog/what-is-an-organizer-of-an-llc/. Accessed 10 December, 2023
What is an Organizer of an LLC?. Legal Explanations. Retrieved from https://legal-explanations.com/blog/what-is-an-organizer-of-an-llc/.