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Anyone can form an LLC with their chosen jurisdiction, making them the entity’s organizer. This person handles all the documents and legal requirements needed to open your business in its home state.
However, the LLC organizer’s role remains unclear to many entrepreneurs. To help you understand their job, we’ve discussed the organizer’s specific duties and responsibilities below.
Key Takeaways
- An LLC organizer prepares an LLC’s formation documents and files them with its chosen jurisdiction. Their role ends once the company’s Articles of Organization is filed.
- The responsibilities of LLC organizers range from preparing formation documents to meeting other state requirements.
- Individuals aged 18 years old or above can become an LLC organizer, including you, other members or managers of LLCs, and attorneys.
- Organizers are tasked to form an LLC on its behalf, while LLC members own the business. Some LLCs have owners managing them.
- Common mistakes that LLC organizers should avoid during the formation process include using an existing business name and providing incorrect information about an LLC’s registered agent.
What Does an LLC Organizer Do?
Essentially, an LLC’s organizer is responsible for forming the entity and registering it with the state and other agencies. They prepare, sign, and file the necessary paperwork to set up an LLC with the appropriate state agency. LLC organizers usually submit formation documents to the Secretary of State or its equivalent.
The organizer’s most important task is to file the LLC’s Articles of Organization properly and according to state laws. It’s the legal document that officially registers an LLC with its chosen jurisdiction, containing basic information such as the entity’s legal name and business address.
An organizer’s duty ends once they’ve filed the Articles of Organization. At this point, the new LLC’s members and managers will start running the business and make important decisions about its operations.
An Overview of an LLC Organizer’s Duties & Responsibilities
An LLC organizer performs several duties and responsibilities during the entity’s formation. Ideally, this person or company:
- Prepares, signs, and submits the LLC’s Articles of Organization
- Pays the required filing fees
- Provides information about the LLC’s registered agent
- Includes their name, signature, and contact information on the LLC’s formation documents
- Reserves the LLC’s legal name (if its owner isn’t ready to register the business yet)
- Ensures that all required documents are completed and filed properly
When these tasks are done properly, your LLC can launch and operate without any disruptions.
Compliance Updates
The Nevada Secretary of State’s office charges $75 for filing an LLC’s Articles of Organization. Expedited processing is available for an additional $125.
A Note on Additional State Filings & Requirements
Besides the Articles of Organization, LLC organizers may need to file other documents and meet additional requirements from the state.
In Nevada, LLCs are required to file an Initial List of Members or Managers upon formation. This document can be submitted online or by mail, with a filing fee of $150.
Your chosen state may also have a publication requirement for LLCs. Essentially, you must publish a notice about your LLC’s formation in a local newspaper chosen by a county office or its equivalent. NCH has discussed this requirement here.
Related Resource
Watch this video for a step-by-step guide to forming a Nevada LLC.
Who Can Serve as an LLC’s Organizer?
Generally, any individual who is 18 years or older can fulfill this role. The organizer doesn’t need to be a member of the LLC, reside in the company’s state of formation, or have an established relationship with the business.
Any of the following people or entities can be LLC organizers.
- You
- Other members or owners of the LLC
- Business-focused attorneys
- Professional business formation service providers, like NCH
- Family members
- Friends
- Registered agents
- Other parties tasked with preparing and filing LLC formation documents
Some entrepreneurs choose a professional business formation service provider or attorney to be their LLC organizer. This way, they can submit formation documents correctly and in compliance with state requirements.
What’s the Difference Between LLC Organizers & Members?
LLC organizers and members have different duties and responsibilities. One handles an LLC’s formation, while the other owns (and can manage) the business. We’ve broken down the key differences between their roles in the table below.
| LLC Organizer | LLC Member |
| Responsible for an LLC’s formation | Usually owns an LLC (Note: Many LLCs are also managed by their owners.) |
| Can be an individual or entity working outside of the LLC | Votes on important business decisions |
| No stake or financial rights in the business | Receives a share of the LLC’s profits and losses |
| No decision-making power | Has ongoing fiduciary duties to the business |
| Their duty ends once the Articles of Organization is filed. | An LLC member can leave the business or stop managing it at any time. |
Related Resources
- Get a closer look at the roles of LLC organizers and members here.
- Know the differences between the responsibilities of LLC organizers and registered agents.
What Mistakes Should LLC Organizers Avoid?
LLC organizers can make mistakes that delay business formation or cause legal issues. They include:
Using an Existing Business Name in LLC Filings
LLCs must select a business name that hasn’t been taken by other companies. Your organizer should be aware of this; otherwise, the state will reject your filings. You can avoid this scenario by:
- Searching for your chosen name on the state’s business entity database and checking its availability
- Reserving the desired name before filing your Articles of Organization
- Preparing other business names (Each of them should meet your state’s naming requirements.)
Providing Incorrect Information About Registered Agents
Inaccurate information about an LLC’s registered agent can also cause issues during the formation process.
Before filing your formation documents, have your LLC organizer check the necessary information. Your chosen registered agent should meet all of your jurisdiction’s requirements, like having a valid address within the area.
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Related Resource
Know how a registered agent conducts the process of service for your LLC.
Failing to Calculate or Pay Filing Fees Correctly
Your LLC’s state of formation can also reject your filings if its organizer doesn’t calculate or pay the exact filing fee. LLC organizers should check their jurisdiction’s current filing fees, accepted payment methods, and additional fees for expedited processing before submitting the company’s formation documents.
Performing Improper Record-Keeping
Once your LLC is formed, you can ask your chosen organizer to give you copies of all filed documents, any related correspondences, and receipts of paid fees. Check whether they’ve provided you with a complete set of records, as some organizers may fail to maintain important ones for LLCs. The latter may cause your business to lose good standing with the state.
Frequently Asked Questions
Can an LLC’s organizer be a member or manager of the company?
Yes, an LLC’s organizer can be a member or manager of the company. It’s a somewhat common scenario for new businesses, as the owner can file formation documents themselves.
Alternatively, you can hire a professional business formation service provider or an attorney to help you register your business with the state.
What happens if an LLC organizer provides incorrect information in my formation documents?
If an LLC organizer provides incorrect information in your formation documents, you must file an amendment. This process will cost your business more and create potential delays.
Your state’s filing office can check your documents for any errors before approval. If it spots mistakes, it’ll ask you to correct them.
Is an organizer personally liable for my LLC’s future obligations?
No, an organizer isn’t personally liable for your LLC’s future obligations. Their duty ends once your Articles of Organization is filed with your jurisdiction. But if the organizer owns and manages the LLC, they may face personal liability for the company’s obligations.
How long does the organizer’s role last during LLC formation?
The organizer’s role typically starts as they prepare an LLC’s formation documents and ends once its Articles of Organization is filed. However, you may delegate other tasks related to the formation process. For example, your chosen organizer can handle name reservations or publication requirements.
Can an LLC have multiple organizers?
While there are no rules setting the ideal number of organizers for LLCs, hiring just one is your best option. This way, you prevent significant issues during the formation process and ensure open communication between your LLC and regulatory authorities.
Does an organizer need to live in the LLC’s formation state?
No, an organizer doesn’t need to live in the LLC’s formation state. This means that business owners can form LLCs in states with business-friendly legal environments regardless of where they live.
Your LLC’s organizer can be a professional business formation service provider, attorney, or another third party based in a different jurisdiction.
Does an LLC organizer need to sign the company’s operating agreement?
No, an LLC organizer doesn’t need to sign the company’s operating agreement. But if they’re a member or manager of the business, they must sign the document. Just make sure their signature is accurate before implementing the operating agreement.
Can I change an organizer’s information after my LLC is formed?
Yes, you can change an organizer’s information after your LLC is formed. To do this, you must file an amendment with your LLC’s home state. However, updating organizer information isn’t necessary unless the filing office spots errors in it.
Do state records list information about an LLC’s organizer?
Yes, state records list information about an LLC’s organizer. If the organizer is a person, their privacy may be compromised. You can hire a business formation service provider as your LLC’s organizer to protect the individual’s privacy.
Does an LLC organizer have any qualifications to meet?
Generally, an LLC organizer doesn’t have any qualifications to meet. They only need to know how to file formation documents and provide the correct information about your business. But if you’re hiring an attorney or a business formation service provider, you must consider their experience with LLC formation.
Expert Tips From NCH
- Choose your organizer carefully because they’ll serve as your LLC’s official point of contact during the formation process. A reliable and detail-oriented organizer can help you avoid costly delays and get approvals from the state filing office.
- Document the formation process thoroughly. Take note of all activities done during your LLC’s formation process, including filing the necessary documents, paying the required fees, and meeting other requirements.
- Keep copies of your LLC’s formation documents. These documents can contain the same set of information for consistency or revised details about your business.
- Work with trusted registered agents, legal experts, financial and tax advisors, and accountants before and after LLC formation. You’ll need these connections to keep your LLC legally compliant and operational.
- Check your state’s ongoing compliance requirements. Your chosen LLC organizer should understand these prerequisites and explain them to you for a successful launch.
Hire a Trusted Organizer for LLC Formation
An LLC’s organizer plays a crucial but brief role in registering the entity with its chosen jurisdiction. This individual or business must prepare the necessary paperwork, ensure accurate information, and file the documents according to state law. When an LLC organizer takes on these responsibilities properly, they’ll help you start your business without issues.
With over 30 years of experience in business formation, NCH has guided hundreds of thousands of businesses through the process while avoiding the mistakes that can cause new LLCs to fail. We’ll prepare your formation documents and submit them to your state’s filing office, giving you more time to focus on your operations.
DISCLAIMER: The above material has been prepared for informational purposes only, containing opinions of the provider and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.