An articles of organization is a document that must be filed before you form an LLC in Texas. This document serves as proof that you are officially registered as a limited liability company. In addition to filing this document, you must file a certificate of good standing certifying that the corporation has been properly formed.
The articles of organization is divided into four sections. These include:
• Name of Company
• Address of Business
• Purpose of Business
• Names of Members
After completing the process, you will receive a Certificate of Incorporation, a legal document that states the date you incorporated. Once you obtain this document, you will no longer need the articles of organization.
You can find sample articles of organizations online. We recommend contacting a local attorney if you do not know where to start.
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What Are Articles of Organization?
Article of the organization is a legal document required for forming an LLC in the state of Texas. You must complete it within 30 days of filing your articles of incorporation. This article outlines what you will need to do to form an LLC in Texas. If you don’t know whether you’re ready to incorporate, check out our guide on How to Incorporate Your Business.
There are two ways to file articles of organization. One way is online and the other way is by post. The documents you will need depend on how many members there are in your LLC.
Completing your articles of organization varies depending on where you live. For example, if you live in New York City, you’ll need to go to the Secretary of State’s office to submit your articles of organization. In California, you’ll need to mail the completed forms to the secretary of state.
If you choose to use the online method, you’ll need to provide the following information:
• Name of Company
• Telephone number
Requirements for Articles of Organization
A company name is required to be listed in the articles of organization. This includes the names of the owners, officers, directors, and managers. These people are responsible for managing the company. They are also responsible for filing tax forms and paying taxes. You cannot use another person’s name unless it is legally authorized.
The address of the office where the company meets must be stated in the articles of organization, along with the city, county, and state. The address must be the same as the one used on the company’s federal tax return. The address must be located within the United States.
An agent needs to be named in the articles of organization in case something happens to the owner. An agent can be someone like a lawyer or accountant. Sometimes, a corporation can appoint an agent without having to file articles of organization.
You can choose whether to become an S Corporation or an LLC. Both types of companies are treated differently by the IRS. For example, an LLC can deduct expenses while an S Corp cannot. However, both types of companies can pay dividends.
If you plan to incorporate in Delaware, you must follow certain requirements. First, the company must have at least three shareholders. Second, the company must have been incorporated for at least 30 days. Third, the company must have paid $100 to register with the Secretary of State. Fourth, the company must maintain a registered agent in Delaware. Finally, the company must have filed a certificate of good standing with the Secretary of State within six months of incorporation.
Creating an Operating Agreement
An operating agreement is not required to form an LLC in Texas, but it is highly recommended. An operating agreement should include some of the following items:
• A description of the purpose of the organization;
• An identification of the members, including the names, addresses, occupations, and types of businesses or interests held;
• A statement of the powers granted to each member;
• A statement describing how profits, losses, distributions, and dissolution are allocated among the members;
• A statement regarding the management and control of the business;
• A description of any real property
Meeting Other Requirements
You must do several things to operate a limited liability company (LLC). You will need to file Articles Of Organization with the Secretary of state. This document will tell people about your business and protect it against lawsuits.
In addition, if you plan on selling products or services, you must register with the Comptroller for sales tax purposes. Also, you will need to apply for Employer Identification Number (EIN). These numbers are needed if you have employees or want to deduct expenses. Finally, you will need an attorney to help draft documents for your LLC.
Hiring the best business attorneys saves money and makes sure things go smoothly. There are many different ways of forming an LLC in TX. If you start out small, the cost of forming one in Texas is around.
Frequently Asked Questions
Are LLC Articles of Organization the same as a Certificate of Formation?
Certificate of Formation is an alternative term for Articles of Organization. In some states, it is called Formal Articles of Organization. This document contains information about the formation of an LLC, including the names of officers, members, and directors. It must be filed with the Secretary of State.
The process of filing articles of organization varies from state to state. Some states require you to file the documents within 30 days of forming the corporation. Others allow you to wait 90 days. If there are multiple shareholders, each shareholder needs his/her own copy of the articles. Each shareholder must sign the articles. You cannot use a corporate resolution form to fill out the articles.
Do I need LLC Articles of Organization?
Yes. You do need to file Articles of Organization with your state’s Secretary of State’s Office before forming a Limited Liability Company (LLC). This document is required even if you are just starting as a small business owner. If you want to start a business in multiple states, you must file articles of organization in each state where you plan to operate.
The Articles of Organization contain information about your company, such as:
• Your name
• The address of your principal place of business
• A statement of purpose
• How many members do you have
• What type of entity are you forming
• Whether you are filing under Chapter 120 or 121
• The date you filed articles of organization
You must file Articles of Organization within 30 days of forming the corporation. Failure to comply with this requirement could lead to fines.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.