The Role of an LLC Organizer
An organizer of an LLC is a person or entity responsible for the initial formation of the company. This includes filing the Articles of Organization, drafting the operating agreement, and recruiting members. Once the Articles of Organization are filed with the state, including member names, registered address, and agent information, the organizer’s duty is considered complete. An LLC member can act as an organizer, but it may be advantageous to use a professional service to reduce the risk of mistakes and allow members to focus on critical business areas such as operations, staff, marketing, and sales.
Registered Agent and Legal Compliance
A registered agent’s role is to receive mail and handle communication on behalf of the LLC. They must be at least 18 years old, maintain an in-state address, and be available during normal business hours. This position is essential for staying compliant with state and federal authorities.
Differences and Responsibilities
The main distinction between an LLC organizer and a registered agent lies in their responsibilities. An organizer takes charge of the technical aspects of forming the LLC and ensures compliance with state regulations. In contrast, a registered agent is appointed for ongoing communication with authorities, primarily receiving mail and notices.
To change an organizer, members usually need to submit a written withdrawal notice or follow a removal procedure detailed in the operating agreement. Similarly, when adding an organizer, one should review the operating agreement and file necessary updated formation documents with the state.
Member vs. Organizer
Is an LLC Organizer the same as an owner? The answer is no. An LLC Organizer does not have to be a member (owner) of the LLC but can be. LLC owners are generally referred to as members and can include various entities such as individuals, corporations, and other LLCs.
Conclusion
The LLC organizer is a temporary but vital role for setting up the company’s legal structure, while the registered agent is a continuous position required for maintaining good standing with state and federal regulations. Despite the overlap in tasks, both roles are crucial and distinct, ensuring the company’s formation and communication streams are properly managed. Using a professional for these roles can offer peace of mind and let members concentrate on growing their business.