If you’re starting a new limited liability company (LLC), you may be wondering what an LLC organizer is, or perhaps what the difference is between an organizer and a member.
To form your own LLC, it’s important to know exactly what is involved and what the correct formation process looks like. While the role of an organizer is not terribly complicated, there are some details that you should understand before starting your new company.
What Is an LLC Organizer?
The organizer of a limited liability company is the individual or business entity responsible for forming the company.
While the responsibilities of an organizer can vary slightly from state to state, the LLC organizer’s basic function is to file the company’s formation documents with the state, establishing the company’s ability to conduct business in that state.
What Is an LLC Member?
An LLC member is also frequently referred to as an owner since LLCs are member-owned companies.
Despite this, in most states, you are only required to document the name of your organizer, not all of your members, when you form your company.
Who Can Be an LLC Organizer?
There are very few regulations governing who can be an LLC organizer. Aside from states that mandate the organizer be over the age of 18, no real restrictions exist. In this case, it’s important to determine who should be your LLC organizer. The most common choices for an LLC organizer include:
- Another member of the LLC
- A respected business service provider (like IncFile or LegalZoom)
- Your company’s registered agent
- Your lawyer or accountant
- A trusted friend or family member
In most situations, the LLC organizer does not have any specific duties beyond the company’s formation, so there is no conflict of interest between their formation responsibilities and any other duties within the LLC. Other LLC titles are given to those managing the LLC.
Legally speaking, you can name just about anyone as the organizer of your LLC, but practically speaking, it’s vital you choose someone who can be trusted to handle the responsibility of properly filing your LLC formation documents. Keep in mind that the LLC organizer does not have any liability if your business is improperly formed.
Should I Hire a Professional LLC Organizer?
Many entrepreneurs prefer to leave their LLC’s formation in the hands of an experienced professional.
There are quite a few benefits to hiring a professional business service provider to handle your formation and serve as your LLC organizer, starting with expertise. Since these companies specialize in drafting and filing business documents, their expertise can prevent errors and provide peace of mind while you work to get your business off the ground.
Another major advantage of hiring a service provider as your LLC organizer is the fact that it can save you or one of your members a considerable amount of time and effort at a time when you have other important responsibilities to consider.
If you do choose to hire a professional service, there are several reputable and affordable options:
- IncFile: Starting at $49 (+ state fee), IncFile is one of the most popular LLC service providers available. They’ve served hundreds of thousands of clients, while maintaining low prices and high-quality customer support.
- LegalZoom: Slightly more expensive at $79 (+ state fee), LegalZoom is one of the largest players in industry. While their customer reviews can vary, they have the longevity and experience to make them a solid choice.
The concept of an LLC organizer is relatively simple: it’s the person or entity responsible for the formation of your limited liability company.
The main decision you need to make in this regard is whether you want to designate yourself or someone you know personally, or whether you’d like to hire a professional LLC service provider like the ones mentioned above.
Either way, choosing the right organizer can go a long way in making your business formation as smooth and seamless as possible.
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