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What Are “Articles of Organization” for a New Small Business?

OrganizedAll you really need to start a small business is a good idea and the willingness to put that idea into action. However, there are some official steps you need to take in order to legally run and operate a business. One of the elements you may need to file is called the Articles of Organization.

When Do I Need to File Articles of Organization?

You need to file Articles of Organization if you are looking to form a Limited Liability Company, or LLC. A Limited Liability Company is one with a small number of owners, or members, and one with a limited tax liability. If you are the sole owner of your LLC, then the business is taxed as a sole proprietorship. If you have partners, then it is taxed as a partnership based on the number of members who own the company.

What Are the Articles of Organization?

What exactly is to be filed as part of the Articles of Organization may vary from state to state, but there are a few basic items. These items include the name of the business, the name of each of the members of the LLC, the address of the business, and possibly the nature of the actual business that the company conducts. Remember that the name of the business must include “LLC” or “Limited Liability Company.”

You will also have to list a Registered Agent for the business. This individual is the one who can receive and send official documents related to business matters for your company. Finally, you will need to provide information about the manager or managers of the business.

Preparing Your Business

Remember, even if you have your inventory, your office space, and your employees ready to go, failing to file proper paperwork can stall your business’s progress. Make sure all the paperwork is in order before moving forward with your business.

Photo Credit: Sarah Cady, Flickr. 

Author:

Over the last ten years, Craig Berger has written thousands of articles on subjects ranging anywhere from poker to real estate. Concerning finance, Craig has written on subjects such as Credit Monitoring, Credit Scores and Credit Reports for both individuals and businesses, credit cards, mortgage loans, buying gold, debt consolidation and more. Craig has a Masters degree in Professional Writing from the University of Southern California.