What is an LLC Organizer? Everything You Need To Know

Many small business owners consider taking their enterprise to the next level by forming a company.  The most popular structure is the LLC, or Limited Liability Company.  LLCs are beneficial for many entrepreneurs because they combine the best features of the other types of businesses.  LLCs have the flexibility and simplicity of a sole proprietorship, while protecting the owner’s assets like a corporation. In this article, you can learn about the role of the limited liability company organizer compared to members.  Many owners consider using third party organizer services for LLC formation.  In this article, we also compare some of the top third party organizer companies and explain their value proposition. Note that this article is an overview of the topic, and not intended as any specific legal or tax advice. Consult your state laws and regulations for additional details.

What is an LLC (Limited Liability Company)?

LLC is an abbreviation for “Limited Liability Company.” It is a sort of business organization and legal entity that combines the tax advantages of a partnership or sole proprietorship with the liability protection of a corporation. The owners, referred to as members, of an LLC have limited liability, which means they and their family member are neither legally or personally liable for the debts of the business. Instead, the LLC is in charge of fulfilling these responsibilities, and members’ private assets are often safeguarded. Due to the flexibility they provide in terms of ownership, taxation, and management structure, LLCs are popular among small enterprises and startups. Additionally, compared to corporations, LLCs often have fewer onerous administrative and regulatory requirements.

What is an LLC Organizer?

The LLC organizer is a person or group that prepares and files the documents to start the LLC with the state government.  The organizer is retained and appointed by the LLC owners, who are referred to as members.  Sometimes a member serves as the organizer; while other times a 3rd party is utilized.  The organizer obtains necessary business licenses, and permits,  drafts the articles of organization, and the organizer files all paperwork with the appropriate state authority.

What are LLC Members?

LLC members are the owners of the limited liability company.  An LLC can have a single member or multiple owners.  The members are founding owners, investors, or any person who will take part in sharing the profits of the company.  The member’s ownership stake is memorialized as part of the articles of organization, while their roles in the company are usually detailed in the LLC operating agreement and other llc documents.

Who Can be an LLC Organizer?

Most any person can serve as the LLC organizer if they are appointed by the members.   The LLC organizer files required paperwork. A member of the LLC, business lawyers, an accountant, or a third-party service are all commonly utilized as LLC organizers.  Single member LLC owners can be their own LLC organizer. Some states do require the organizer to have residency in the state while others do not.  After the paperwork is filed, the organizer has no further role in managing the LLC unless specifically authorized to do so.

LLC Organizer Vs LLC Member: What’s The Difference?

LLC Organizers are individuals or companies who are responsible for the filing of LLC form documentation in their state. It is these individuals who “organize” and file LLCs. LLC Organizers are usually not required to be members in an LLC. LLC organizers differ a bit in terms of affiliation with members of LLCs. A member of an LLC may include individuals or entities who have membership interests. LLCs are able to control company operations and administration. An LLC organizer is a person who facilitates the technical formation of the LLC for a particular entity as the organizer files the required licenses and formation documents. It’s not necessary to join the company in order to do so.

LLC Organizer Liabilities

The organizer’s role is to facilitate the founding of the LLC by filling out the required paperwork and submitting it to state authorities.  The organizer does not have an ownership or employment interest further than that in the LLC.  Thus, the LLC organizer is in no way liable for business debts or other liabilities.  The members themselves are also not personally liable as previously described in this article.  However, the LLC organizer may be liable for any errors or omissions they make in the business’s formation documents..  Therefore, many professionals who specialize in this work may consider purchasing E and O insurance.

LLC Formation Documents

To legally begin an LLC, the organization must file creation documents. Each state requires slightly different LLC formation documents, but there are many similarities.  First, the organizer obtains the required business license and permits, which may also include registering a legal name. Then the organizer files the articles of organization, the primary document that describes the purpose of the LLC, the registered agent’s name and address, the names of the members, and other required information.  Additionally, organizers may obtain an EIN, or employer identification number, for federal tax purposes and file a formal  operating agreement.

Should You Hire a Professional LLC Organizer?

For those who want to create an LLC, hiring a professional LLC organizer might have a number of advantages. One of the main benefits is that a professional organizer has dealt with many LLC formations in the past and can offer knowledge and experience to the table. If you are unsure of the legal requirements and processes, they can walk you through the entire process and make sure that all required paperwork is filed appropriately. The fact that hiring a professional organizer can help you save time is another significant benefit. A professional can handle the paperwork and legal requirements for you, freeing up your time so you can concentrate on other important areas of your business. Forming an LLC can be a time-consuming process. In addition, a qualified LLC organizer can collaborate with you to provide specialized solutions that meet your particular requirements. They may assist you in drafting an operating agreement that represents your company’s needs and objectives, which can help avoid conflicts and provide your LLC’s operations a clear structure. The peace of mind that comes from knowing that your LLC is being set up legally and under professional direction can also help to relieve stress and free up your time so you can focus on developing and expanding your business.

The Top 2 LLC Organizers

ZenBusiness

Zenbusiess offers an easy to use interface and an excellent array of services.  This company is somewhat newer in the field, but has a well deserved hot reputation.  It’s hard to find a bad user review with Zenbusiness. Customers appreciate their sleek and intuitive UI/UX which makes the formation process easy.  Infact, some LLC members were able to organize their business in under 30 minutes with the platform.   They offer three transparent pricing plans, all of which provide excellent value and return on investment. We find their organization service to be outstanding. Users can add on other services such as annual compliance, registered agent, or tax consultations. Even the free service has excellent features and the higher tiers offer benefits of faster (even same day) filing.

Northwest Registered Agent

With decades of successful experience, Northwest Registered Agent has helped over 3 million business owners file their required paperwork.  A solid overall competitor, Northwest is best known for its superior customer service and its eponymous registered agent service.  Northwest is well known for its customer representatives called “Corporate Guides” who walk you through every step of the process.  The company prides itself on doing business in an old fashioned personal way.  Someone always picks up the phone to answer your calls – no chatbots or annoying automated menus.  They also specialize in efficient and data secure registered agent services. Formation speed can take a few weeks, so Northwest is probably not the choice if you need work done ASAP.

Final Thoughts

Many entrepreneurs, sole proprietors, and small business owners may benefit from forming Limited Liability Companies (LLCs).  These corporate entities possess both simplicity and ease of operation along with the protection of a corporate shield.  By separating personal and business liability, LLC members protect their personal funds and assets from risk.  It can be surprisingly easy and cost effective to set up an LLC.  We have discussed the organizer role in the formation of LLCs.  Many entrepreneurs find the help of a third party expert in organizing the LLC makes the process streamlined and affordable – while the members can concentrate on growing the business instead of foiling the paperwork.  For today, we find the Zenbusiness and Northwest Registered Agent are the top choices.  Zenbusiness is easy to use, fast, and intuitive for business organization.  Northwest provides superior customer service and stellar registered agent service.

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