Articles of organization establish a limited liability company (LLC). Articles of incorporation establish a corporation. Both serve to legally form a business entity.
Key Differences
Articles of organization limit owners’ liability more than articles of incorporation. However, articles of incorporation better allow for transfer of holdings to investors.
Filing Procedures
To establish an LLC, file articles of organization with the secretary of state. The articles highlight:
- LLC’s name
- Address
- Members
- Purpose
- Structure
- Registered agent’s contact information
To establish a corporation, file articles of incorporation. These list:
- Corporation’s name
- Address
- Shareholders
- Purpose
- Leadership structure
After filing, the articles become part of the public record.
The choice between an LLC and a corporation depends on liability protection needs and desire for outside investors. Consider which structure better fits your business before filing either type of article.