Are you looking to form a new limited liability company? Thousands of these popular American business entities are formed every day across the country, a trend which likely won’t stop anytime soon.
Of all the questions we receive from our readers, by far the most frequent ones pertain to the LLC. In this article, we’ll take aim at a rather common question with a relatively simple answer: What is an LLC organizer?
Every limited liability company needs an organizer, no matter what state you form your business in. As it turns out, the role of the LLC organizer is a rather easy one to explain, so let’s get to it!
What Is an LLC?
Before we address the role of the limited liability company organizer, we should probably touch on what an LLC is. An LLC is a business entity that is owned and operated by one or more people, and its most popular attribute is the limited liability protection it provides.
If your business is sued, your LLC business structure will shield your personal assets from your creditors, so they cannot pursue your house, car, personal bank accounts, etc.
The LLC is easy to form and simple to maintain, and it provides plenty of options regarding management structure and taxation models. You can do it yourself by filing with the state or have a top rated LLC service do it for you. LLCs are popular for a wide variety of industries, and for both large and small businesses. But what exactly is the LLC organizer, and what does this role include?
What Is an LLC Organizer?
The organizer of a limited liability company is the individual person or business entity that handles the actual formation of your company. The main responsibility of an LLC organizer is preparing and filing your articles of organization with your state government, and the LLC organizer’s identity is usually required information in that formation document.
The LLC organizer is often a member of that company, especially in the case of a single-member LLC operating on a tight budget. That’s not the only situation where you commonly see owners of a company serving as their own organizer though, as multi-member LLCs also often have a member forming the business entity themselves.
There are also many examples of someone outside the company acting as the LLC organizer, so let’s discuss who is eligible to serve as your LLC’s organizer.
Who Can Be an LLC Organizer?
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.
This age requirement is specifically designated by law for LLCs in Colorado, Illinois, Minnesota, Oregon, and Texas. Aside from that, just about anyone can legally serve as an LLC organizer.
With that in mind, perhaps a better question is who typically fills the role of an LLC organizer. The most common options are a member/owner of the LLC, the LLC’s registered agent, a lawyer, an accountant, and online business formation services.
In our experience, we highly prefer having someone with experience serve as your LLC organizer. 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.
Should You Hire a Professional LLC Organizer?
We often recommend that our readers use a reputable business formation service to serve as their LLC organizer.
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.
A business formation service forms limited liability companies day in and day out, so they have the experience to get the job done right. Often, the most difficult aspect of hiring a professional LLC organizer is deciding which of the many quality options you want to go with.
If you’re interested in using an online business formation service, you can take a look at a couple popular LLC services — Zen Business and LegalZoom and Northwest Registered Agent:
- Northwest Registered Agent ($225): For $225, Northwest will form your LLC and include a full year of their online registered agent service. They also have next-level personalized customer support that makes Northwest one of our favorite companies in this industry.
- Zen Business ($39): Zen Business undercuts Northwest’s price tag, while also offering a free year of registered agent service. While Zen Business doesn’t have the same level of customization for their customer service as Northwest does, they do have thousands of fantastic customer reviews available online, which can be quite the advantage depending on your preferences.
- LegalZoom ($79): LegalZoom can’t match Northwest or Zen Business when it comes to value, and they don’t include any registered agent service with their LLC formation packages either. However, LegalZoom has a massive customer volume and impressive brand power, so if you want to use the most popular service available, LegalZoom is worth a look.
Even though the limited liability company organizer is a tremendously important role, there aren’t many rules or regulations regarding who is legally allowed to serve in this position. The most popular routes are to either DIY your LLC’s organization, or to hire a professional LLC organization company to shoulder this load on your behalf.
As you’ve probably gathered by now, our preferred route is to hire an LLC formation service. You get comparable expertise and peace of mind to hiring a lawyer for this position, but at a much lower cost that fits well within most startup budgets.
Whether you choose to function as your own LLC organizer, hire a formation service, or use one of the other options discussed in this guide, we hope we were able to answer your tough questions about this important role!