Articles of Organization
Articles of Organization are filed when registering a limited liability company (LLC). These documents:
- Establish an LLC’s existence under state law
- Require basic information about the LLC such as name, address, registered agent, and members
- Are public records accessible to anyone
- Serve as a legal declaration that the LLC is operating in compliance with state laws
- Are a legal requirement and must be filed with the state
Operating Agreement
An Operating Agreement:
- Outlines ownership and operations, and it resolves issues within an LLC
- Acts as a binding contract between LLC members
- Addresses management, voting rights, profit distribution, and other operations
- Is an internal document not filed with the state
- Is more easily amended than Articles of Organization
- Serves as a comprehensive guide for the LLC’s internal operations
While Articles of Organization and Operating Agreements are both critical for an LLC, they serve different purposes. Specific, non-vague wording is important in both documents to avoid problems.
FAQs
What is another name for operating agreement?
An Operating Agreement may also be referred to as the statement of organizer.
Is the statement of organizer the same as an operating agreement?
Yes, in some contexts, the statement of organizer can be another name for the Operating Agreement.