Many people know that the Limited Liability Company (LLC) can be a handy and convenient way to organize a company for minimal tax and legal liability. Heck, “limited liability” is in the name of the company type itself. But how many of us actually know how to organize one of these companies, and how many of us really know what kind of papers we’ll have to sign and keep around in order to make sure that our LLC is on solid legal footing?
The way to know an LLC from the inside-out is to know the papers that go into creating this type of organization. And since that’s our specialty, we thought we’d offer you a quick run-down of the papers you can expect to look at if you’re forming an LLC of your own.
Articles of Organization
This could be considered the main “charter” of an LLC, the essential document that provides the foundation for the organization itself. The different variables present in the articles of organization include the management of the LLC, the members of it, its contact information, the state of its organization, etc. Essentially, the articles of organization represent the document that provides the backbone for the new company you’re going to be forming.
Since it’s hard to understate the importance of the articles of organization, why are there even other forms present when creating an LLC? Generally, this is because there are items about the LLC that will require adjustments. For example, future amendments will come on separate forms, as will meeting agreements and the termination of the LLC, if applicable.
Even so, your main focus if you’re forming an LLC is on the articles of organization. Make sure that it’s filled out honestly, faithfully, and according to the wishes of everyone involved in the creation of the LLC in the first place. When the articles of organization are drafted correctly, much of the LLC’s structure will be strong and able to handle any potential future legal challenges.
Amendments and Operating Amendments
The Constitution of the United States is not an infallible document – that’s why it has an amendment process for any potential changes that might be required. Similarly, your LLC’s founding document, the articles of organization, may require amending in order to reflect different times or the different opinions of members within your organization. That’s what these documents are for: ensuring that the foundation of the LLC can be changed in a legal way, thus providing your LLC with the structural flexibility to meet new challenges and even expand in the future.
These amendments should be chosen carefully and should be carried out legally, which is why you’ll need the proper legal forms to ensure that they’re filed correctly. And you’ll need to keep these files close to the articles of organization so that you’re aware of the changes that happened after these amendments. The better organized you are, the better organized your LLC will be – and, in all likelihood, it will also be more successful.