What Is an LLC Organizer?
Appointing an LLC organizer can take a lot off your plate during the LLC formation process. While you certainly can serve as an LLC organizer yourself, many new business owners outsource this role to allow them to focus on other aspects of starting their new venture.
Read on to learn more about who can be an LLC organizer, what they do, and how they can benefit you.
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What Is an LLC Organizer?
An LLC organizer is someone who oversees the completion and filing of all LLC formation documents or Articles of Organization with the state in which you plan to LLC.
Their primary responsibilities involve filling out the required paperwork and ensuring the information is accurate and complete. An LLC organizer will then submit all of these documents — usually to the Secretary of State — and pay any required filing fees.
Other LLC organizer responsibilities may include:
- Facilitating any additional, required steps of the LLC formation process;
- Submitting applications for any business licenses;
- Drafting and creating an LLC’s operating agreement
- Verifying initial compliance with all state laws and guidelines.
If any issues arise with the required paperwork, taxes, or fees, the state will communicate with the LLC organizer through the contact information filed along with the Articles of Organization until it approves the official creation of the LLC.
Every state requires at least one person to serve as the LLC organizer — and each state has its own requirements for this role. After forming your LLC, the state will communicate with your registered agent moving forward.
Furthermore, after an LLC organizer completes and signs all formation documents, files the LLC’s Articles of Organization, and pays all related fees, they have no ongoing responsibility to the LLC members to continue to act on their behalf.
LLC Organizer vs. Member
While an LLC is considered a small business, it’s important to understand the difference between an LLC organizer and an LLC member.
LLC Member
An LLC member is a person (or entity) that holds membership or interest in the LLC while an organizer, if not already a member, does not.
All LLC members (also considered owners) are responsible for the operation and management of the LLC as well as for all of its debts and obligations. They’re also liable for ensuring the LLC complies with its operating agreement and all applicable state laws and regulations.
LLC Organizer
An organizer is responsible for facilitating paperwork and forming the LLC, but they don’t have any financial responsibility to the business.
Once an LLC organizer completes and files the necessary paperwork for the LLC’s formation, their duties stop. In contrast, an LLC member will remain involved in the LLC throughout the business’s life span.
Who Can Be an LLC Organizer?
Most states have minimal requirements and regulations regarding who can serve as an LLC organizer. Typically, they need to be at least 18 years old and reside within the state where you plan to form your business. You can check with your local government for any additional regulations.
While a member of your LLC can serve as the LLC organizer, it’s not a requirement. You can instead choose another person or entity to serve as your designated organizer. Some examples of who — or what — can act as your LLC organizer include:
- Family Members
- Business Lawyers
- Your Registered Agent
- Corporations
- Trusts
- Partnerships
- Other Legal Entities
LLC Organizer Qualifications
While there are no strict requirements for who can be an LLC organizer, certain considerations and qualifications are essential for a successful and effective LLC organizer. Examples of qualities and characteristics that make someone suitable to be an LLC organizer include:
Legal Knowledge and Experience
An LLC organizer should possess a solid understanding of the legal framework surrounding LLCs. They should be familiar with state-specific regulations and requirements for forming and maintaining an LLC. While not mandatory, having a legal background or working with an attorney can be advantageous to navigate the complex legal aspects involved.
Attention to Detail
Organizing an LLC involves completing numerous administrative tasks and paperwork. An organizer should be meticulous and have exceptional attention to detail to ensure accurate completion of documents such as articles of organization, operating agreements, and relevant tax forms. Mistakes or oversights in these documents can lead to complications in the future.
Communication and Interpersonal Skills
Effective communication is crucial for an LLC organizer. They will need to liaise with potential members or owners of the LLC, as well as government agencies, attorneys, and accountants. Clear and concise communication helps to establish expectations, resolve conflicts, and ensure all parties are well-informed throughout the formation process.
Trustworthiness and Integrity
As an LLC organizer, you will be privy to sensitive information about the company and its founders. It is essential to maintain the highest standards of trustworthiness and integrity, ensuring the confidentiality of personal and financial information. A reputation for honesty and ethical conduct is crucial for the success and credibility of an organizer.
Organizational Skills
Given the name, it is no surprise that organizational skills are vital for an LLC organizer. The formation process involves managing various documents, timelines, and deadlines. A well-organized individual can efficiently handle the administrative tasks, keeping track of important dates, and ensuring compliance with legal requirements.
Patience and Persistence
Establishing an LLC can be a cumbersome process, with various amounts of paperwork, legal filings, and administrative tasks. An organizer must have the patience and persistence to navigate through any delays or setbacks that may arise during the formation process.
Professional LLC formation services can save you time and money by putting you directly in contact with an experienced professional. Check out our Best LLC Services Review to learn more.
Who Should Be My LLC Organizer?
Many small business owners choose their registered agents to serve as their LLC organizer.
Registered agents can accept legal documents on behalf of your LLC, and their service continues beyond its formation. By combining the roles of LLC organizer and registered agent, you can ensure consistency with all paperwork and save money by not having to hire two people for similar tasks.
Alternatively, can even serve as your own LLC organizer and submit your Articles of Organization and any other required paperwork to the state where you plan to conduct business.
Because an LLC organizer’s responsibilities don’t extend beyond the formation process, they generally have no conflicts of interest. With these minimal restrictions, you can choose whomever you prefer to act on your LLC’s behalf and take on the responsibility of filing its formation paperwork.
We recommend you follow the professionals and designate an experienced registered agent as your LLC organizer. Visit our Best Registered Agent Services Review to learn more.