Member, manager, owner, organizer, employee – there are a lot of roles to consider when forming an LLC.
The truth is that these roles overlap frequently, and they’re not always assumed by separate people. But out of all these roles, you might be least familiar with the organizer. Fortunately, the organizer’s role and duties are fairly straightforward.
Still, it’s important to understand the responsibilities of an LLC organizer, especially as you prepare to start your business. This guide offers a comprehensive understanding of LLC organizers, everything you need to know as a new or aspiring business owner.
If you need help starting an LLC or just want to make sure it’s done correctly, hire an online LLC service like 🥇 ZenBusiness ($39) or LegalZoom ($99). They take care of all the legal paperwork so you can focus on what you do best.
What Is an LLC Organizer?
Your LLC doesn’t magically blink into existence (as nice as that might be!), but it needs to be willfully formed by completing several specific steps. This means that a physical person or business entity must execute the formation. This is the LLC’s organizer.
The organizer’s exact role varies between states, so you’ll want to consult your state’s laws, but generally, their main objective is to file the LLC’s formation documents with the appropriate state department. The Articles of Organization (or an equivalent document) will commonly ask for the organizer’s name and address.
In many cases, the organizer of a limited liability company is also one of its owners/members. After all, many limited liability companies are single-member LLCs that operate on strict budgets, so it’s practical to pull double duty. For multi-member LLCs, it’s still quite common for one of the owners to form the business. Because they’re already reliable members with extensive knowledge of the company, it’s only natural to trust an owner with the task.
But this isn’t the only option and, in certain situations, it might be better to go a different route.
Who Can Be Your LLC Organizer?
You don’t have to look far to find eligible organizer options, because most states have very few restrictions on the role. Many states require the organizer to be over 18 years old, but other than that, there are few other laws about it. These are some popular and effective options:
- Another member/owner of your LLC
- Your LLC’s registered agent
- A lawyer or accountant
- A friend or family member
- An online business services provider
But just because you can designate essentially anyone as your LLC organizer, doesn’t mean you should pull someone off the street to do so.
The truth is that some options are more effective than others. Choosing someone who has experience forming LLCs or understands formation processes will ensure that there are fewer snags in the process. Considering the fact that the organizer has no liability if your LLC isn’t formed correctly, you should definitely be careful when deciding who to trust with this process.
Can I Hire Someone to Be My LLC Organizer?
Many LLC owners decide to take on the formation process themselves, and this is certainly a viable option. But as an entrepreneur, your plate is probably piled high with responsibilities and concerns already, and adding one more could cause it to topple.
Or, maybe you’re simply not confident that you’d be able to complete the process correctly, so you’d rather hire a professional. Sound like you? The good news is that hiring help doesn’t have to be overly expensive.
Some entrepreneurs like to designate their lawyer or accountant to organize their LLC. This is generally a smart move, but be aware that attorneys and accountants can charge very high rates for this service. Instead, you might consider hiring an online LLC formation service.
The DIY formation route might be free, but for a modest fee, you can hand off all those responsibilities and rid yourself of anxieties about handling the process correctly. There are companies online that provide high-quality LLC formation services that make them trustworthy options to be your LLC organizer. You’ll save quite a bit of time while still receiving the peace of mind you get from professional formation.
If you’re interested in hiring a business services provider to be your limited liability company organizer, check out a few of our favorite companies in this industry:
- ZenBusiness – $39: This is the best value you’ll find for LLC formation services. While they don’t have the extensive track record as the two options below, they’ve formed thousands of businesses so far and very positive online reviews. They also have the most complete base package available.
- IncFile – $0: They boast the best customer feedback in the industry and they’ll throw in a full year of registered agent service with any LLC formation purchase. For these reasons alone, IncFile is always among our top picks. They go above and beyond, though, and their customer reviews reveal a track record of satisfaction, success, and excellent service.
- Northwest Registered Agent – $225: Their pricing isn’t as low as IncFile’s, but Northwest has outstanding one-on-one personalized customer support, which is a big advantage in this industry. Like IncFile, Northwest includes a year of registered agent service, but they have an advantage here too as they’re the only major service provider that locally scans every document they receive, whereas most competitors only scan government docs.
Roll with any of these three and your LLC formation will be in worthy, capable hands. They’ll handle everything, so you can continue strategizing with your team, setting up business deals, and fleshing out your plans for growing the company.
The organizer might be the most flexible position in your LLC. There are surprisingly few legal requirements for LLC organizers, and in many states, there aren’t any legalities at all. When selecting an organizer, you should consider your LLC’s unique circumstances and budget before deciding whether to take the DIY route or hire help.
Want our opinion? Hiring an LLC formation service is a great compromise between forming your own LLC and spending the big bucks to have a lawyer handle it. With a formation service, you get the best of both worlds: professional, trustworthy formation at a reasonable cost. And you can trust our advice because we’ve put in a ton of legwork, researching all the options and weighing their pros and cons.
Regardless, designating an organizer is an exciting first step on your LLC journey. Make it a good step forward and you’ll set yourself up for success and stability for years to come.