LLC Organizer – What is it and FAQ about Members & Organizers

What is an LLC Organizer and How is it Different than a Member or Registered Agent?
Denise Elizabeth P
Senior Financial Editor & Contributor
Last Updated: April 15, 2021
Date Published: March 31, 2021

An LLC organizer is a designated person who is responsible for filing a limited liability company’s formation paperwork with the state.

These documents are most commonly referred to as the “Articles of Organization.”

The Articles of Organization are perhaps one of the most important parts of forming your business.

In simple terms, the Articles of Organization are what outline the basic details about your company.

You could even say the Articles of Organization are like your company’s birth certificate.

The Articles of organization are sometimes confused with the operating agreement but they are not the same thing.

An LLC Operating Agreement is not legally binding and is not a mandatory requirement for most states.

The Articles of Organization on the other hand, is part of a formal legal document used to establish a limited liability company (LLC) at the state level.

The LLC articles (llc formation documents) are used to create the rights, powers, duties, liabilities, and other obligations between each member of an LLC and also between the LLC and its members.

Once accepted, the Articles of Organization are what officially registers your Limited Liability Company and locks in your business name.

It is the LLC organizer’s duty to ensure that these documents are compliant with state law and filed in a timely manner.

The LLC’s organizer must file creation documents with the secretary of state, including the LLC’s name and registered address as well as a list of all its members.

Every LLC is required to have an organizer during the initial stages of formation.

Once the LLC is formed and accepted, the organizer will typically relinquish power back to the members or owner of the LLC.

LLC Organizer FAQ

LLC Organizer – Frequently Asked Questions

Can I be my own LLC organizer?

The answer is, Yes.

Any legal entity or adult person may act as an organizer of a limited liability company as long as they are authorized to do so by the member(s) of the LLC.

Most states don’t have many requirements for being a limited liability company organizer, aside from an age requirement in several states that requires an LLC organizer to be at least 18 years of age.

Aside from these age requirements, pretty much anyone can serve as an LLC organizer, even yourself.

What is the difference between member and organizer?

An LLC member(s) or owner(s) are the individuals in charge of the operations, debts, obligations and management of the LLC.

Members are generally considered to be the owners of the LLC, and they may split ownership interests – learn all about LLC’s here.

Although it is possible for an LLC member to also be an LLC organizer, this is not a requirement.

The organizer is simply a designated person who is responsible for filing a limited liability company’s formation paperwork with the state.

They may be someone other than a member or a member can serve as an LLC organizer.

More commonly though, LLC organizers are lawyers, accountants, administrative assistants, or companies that specialize in business formation services.

Can the registered agent and organizer be the same person?

Organizers and registered agents are not one and the same however, in some states LLC organizers can act as the LLC’s registered agent.

Organizers usually perform duties limited to the initial creation and filing of the LLC documents.

A registered agent is a business’s legal appointee to receive notice of lawsuit and other legal or government notices.

The majority of businesses use a registered agent service to meet this requirement.

State law requires every LLC, corporation, and other business entity to have a registered agent.

Furthermore, organizers and registered agents cannot share in the profits or responsibilities of the LLC unless they are members.

What does it mean to be an organizer of an LLC?

In the simplest terms: An LLC organizer is a designated person who is responsible for filing a limited liability company’s formation paperwork with the state.

These documents are most commonly referred to as the “Articles of Organization.”

Learn more about Articles of Organization here.

While this role is limited to the formation of a business by filing the articles of organization, you want to make sure you choose someone that you can trust to do this correctly.

Checkout our recommendations here for the best formation services that can act as your organizer and make sure you company gets setup properly.

Harbor Compliance Review

Is there any Liability with being an LLC Organizer?

No liability, ongoing duties, or other significance is attached to being the organizer of an LLC.

Generally speaking, once an LLC is set up and filed, the organizer has no other responsibilities or duties related to the LLC.

Legally, an LLC organizer has no other requirement other than to create and submit the business’s formation documents (Articles or Organization).

They must ensure that all required attachments and fees are included with this filing.

They can be assigned other tasks as allowed by state law.

Some states allow organizers to act as an LLC’s registered agent and receive legal paperwork for the company.

They are also allowed to reserve a business name before the formation documents are submitted and assist in drafting the formal operating agreement that dictates how an LLC is run.

An LLC’s operating agreement stipulates how members vote, what their duties are, and how profits are divided up.

Such agreements are not required by each and every state so you will want to look into your local state laws regarding this matter.

However, drafting an agreement is a practical option to help clearly lay out how an LLC operates and what role each person plays.

Conclusion

In our experience, we highly recommend having someone with experience serve as your limited liability company organizer.

You wan to make sure this person or company knows what they are doing so that your company gets setup correctly and off to a good start.

It’s also imperative that you completely trust this person or business entity to form your business correctly, because there is no liability for an organizer if this process is not completed properly.

We always recommend that business owners hire an LLC formation service to form their business.

These companies charge much lower rates than business lawyers usually charge for this service, and because the LLC isn’t all that complicated of a business entity, we think that a lawyer’s expertise is often unnecessary for this role.

Here are a few related resources regarding LLC formation that we think you may be intersted in:

LLC Formation – Step-by-Step Guide to Forming a Limited Liability Company

Best LLC Formation Services

What is an LLC

What are the Articles of Organization

Cost to Form an LLC

Best Registered Agent Service for forming your business