When starting a new business, one of the most important decisions you will have to make is choosing the legal structure that best suits your needs. For many entrepreneurs, a limited liability company (LLC) is the preferred option due to its flexibility, tax advantages, and limited liability protection.
However, setting up an LLC requires more than just filling out some paperwork and paying a registration fee. In most states, LLCs are required to submit two key documents: an articles of organization and an operating agreement.
The articles of organization is essentially the LLC`s birth certificate. It is a legal document that registers the business with the state government and outlines the basic details of the company, such as its name, purpose, and address. It may also include information on the LLC`s management structure and the names of its members.
While the articles of organization are important for establishing the LLC, they do not provide all of the necessary information for running the business. That is where the operating agreement comes in.
An operating agreement is a contract between the members of the LLC that outlines the rules and procedures for how the company will be run. This can include things like how profits and losses will be divided, how decisions will be made, and what happens if a member wants to leave the business.
Even if your state does not require an operating agreement, it is strongly recommended that you have one. Not only does it provide clarity and structure for your business, but it can also protect you in case of disputes or legal issues down the line.
In addition to fulfilling legal requirements, submitting your articles of organization and operating agreement can also have SEO benefits. By including important keywords in your documents, you can improve your online visibility and make it easier for potential customers to find you.
When it comes to starting an LLC, don`t overlook the importance of submitting your articles of organization and operating agreement. Not only are they legally required in most states, but they can also provide structure and protection for your business, as well as boost your SEO efforts.
