What is an LLC Organizer?
Are you in the process of forming a new limited liability company, but you’re not sure what the term “LLC organizer” means?
Are you wondering what the difference between an LLC member and an LLC organizer is? There are several roles involved with LLC formation and maintenance, and while some of them are largely interchangeable, it’s important to understand how each of them affects your business.
In this guide, we’ll discuss the role of the LLC organizer in your company’s formation process. Who is the LLC organizer, and what are their responsibilities? Let’s answer these questions and more!
What Is an LLC Organizer?
The LLC organizer is the person or business entity that forms your limited liability company. The exact role of the LLC organizer does vary a bit depending on your state of formation, but in general they are responsible for filing the company’s formation documents with the state. The identity of your organizer is one of the commonly required details included in your articles of organization.
In many cases, the organizer of a limited liability company is also an owner/member of the LLC. After all, many limited liability companies are single-member LLCs that operate on limited budgets, so it’s simply a matter of practicality to pull double duty. For multi-member LLCs, it’s still quite common for one of the owners to also be the LLC organizer, because if you’re starting a business with someone, you clearly already trust them and believe in their business sense.
However, many LLCs also designate someone outside the company to serve as the organizer. Let’s dig into what your options are for this position.
Who Can Be Your LLC Organizer?
There aren’t really all that many rules and regulations about who can serve as an LLC’s organizer, although in some states it is required that the organizer be at least 18 years old. While there aren’t specific laws regarding who is able to be an organizer, we can discuss what the most common choices for an LLC organizer are.
- 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
While you’re allowed to designate essentially anyone you want as your LLC organizer, we recommend that you either choose someone with experience forming LLCs, or someone that you trust to put in the time and effort to learn how the process is done correctly. Especially considering 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?
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, when you could save quite a bit of money by hiring an online LLC formation service.
While saving money is always great, companies like IncFile and Northwest Registered Agent provide high-quality LLC formation service that makes them trustworthy options to be your LLC organizer. You’ll save quite a bit of time and effort compared to the DIY route, while still receiving the peace of mind you get from a 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:
- IncFile – $49: IncFile has one of the lowest price points around for LLC formations, and they include a full year of registered agent service as well. They also receive excellent feedback from their customers, giving them a very well-rounded offering in our opinion.
- Northwest Registered Agent – $79: While they’re a bit more expensive than IncFile, they do quite a bit to justify their price point. Northwest has top-notch one-on-one customer support with a dedicated representative for each client account, which is a big advantage. They also include a year of registered agent service, and they’re the only major service provider that locally scans every document they receive on your behalf, instead of just scanning government docs like most competitors do.
- LegalZoom – $149: Their price points aren’t particularly inviting, but depending on your priorities LegalZoom might be a solid choice for you. They have a huge customer volume and they have a ton of brand power, plus their 100% satisfaction guarantee is a nice safety net.
There are surprisingly few legal requirements for LLC organizers, and in many states there aren’t any legalities to consider at all. What you need to focus on when selecting an organizer for your limited liability company is whether you’d like to tackle the DIY option, or whether you want to hire someone to form your LLC for you.
In our opinion, hiring an LLC formation service is a great compromise between forming your own LLC, and spending the big bucks to hire a lawyer to handle it. You get the benefit of knowing your company was professionally formed, but the cost isn’t really that much more than the DIY route.
No matter who you choose to serve as your LLC organizer, we wish you nothing but the best of luck with your new business!