Account Organizer LLC: Everything You Need to Know
An account organizer LLC is an individual or a business responsible for filling out and filing all formation documentation for an LLC.3 min read
An account organizer LLC is an individual or a business responsible for filling out and filing all formation documentation for an LLC.
What Is an LLC Organizer?
Guidelines vary by state, but almost anyone can be appointed as an organizer as long as they are over 18 years of age. LLC members can select an associate, appoint themselves, or hire a third party to act as an organizer.
The main responsibility of an account organizer is to sign the articles of organization paperwork, which legally confirms all documented business information, including state laws, the individual or business's name, and address.
Additionally, organizers serve as the registered agents and are required to report their earnings to the IRS.
Organizers' responsibilities include:
- Obtaining legal and business documents
- Preparing the operating agreement
- Summarizing the business format
- Holding elections within the company
- Distributing income
Limited Liability Company
By combining a corporation and partnership business structure, a limited liability company (LLC) protects its owners from personal liability and allows for direct management control over their company. An LLC consists of one or more representatives.
Organizers file required documents. Adding members is an internal process, never seen by the state. This allows for freedom when choosing whether or not to have an organizer. An organizer can be the owner, a member, lawyer, bookkeeper, friend, or a family member.
Decide Where to Organize
Registration rules for businesses vary from state to state. Be sure to research all requirements. Determine in which states you conduct business and register accordingly. If you do business in several states, you have to register in each state, pay initial filing fees, ongoing fees, and yearly income reports.
Pick a Business Name
Naming a business is not an easy task. Choosing a poor name can lead to many setbacks, including legal problems. Follow simple guidelines to protect yourself:
- Choose a name that is timeless, can be pronounced and recognized with ease, and is one of a kind.
- To avoid possible problems, search the internet to see if the name already exists. Check for errors in the name. Search for registered trademarks on the U.S. Patent and Trademark Office website and through the secretary of state.
Select a Registered Agent
Appoint a qualified registered agent who has a local address. The agent is responsible for legal correspondence for your LLC.
Hire an Attorney or Form an LLC Yourself
Though you can form an LLC yourself, consulting with a lawyer is recommended because they have experience in legal processes, know what documents to file, can help avoid mistakes, understand legal jargon, and maintain a permanent address.
Forming an LLC yourself saves the company money if done correctly. Hiring a qualified attorney or discount service is costly. Discount services range from $200-$300 a year, while experienced attorneys can cost up to $2,000 for their services.
This step is done prior to reporting the company's articles of organization. It outlines ownership control, including profit distribution. Ownership percentage is determined by how much each individual contributes financially to the company. The more one invests, the more shares they hold.
Legally, companies are permitted to have as many owners as desired. Owners must submit paperwork authorizing responsibilities and goals through an Investment Representation Letter.
Articles of Organization
Articles of organization documents are open to the public. They are submitted to the secretary of state along with filing fees. Requirements vary from state to state, and it is recommended to visit your state's website.
In the articles of organization, you must include:
- Your LLC's name
- Address and name of the registered agent
- Business objectives
- Members' names
- The intended lifespan of the company
Choose Management Type
Management by owners means that the business owners directly manage the business. A manager-operated organization incorporates a third-party person to manage daily transactions.
Prepare and Approve Operating Agreement
Operating agreements are confidential documents that describe the company's ownership and management style as well as members' rights and obligations.
Obtain Your Federal Employer Identification Number
An EIN is mandatory for all LLCs. An EIN protects the business owner from identify theft and is required to open a business bank account. You can submit your application for an EIN online, by mail, or by phone.
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