A comprehensive look at how LLC articles of organization and operating agreements should be set up in. This is important information for business owners.

This document starts the process of becoming an LLC and is required by all states (after first naming the business and registering it with the state). The form includes basic business information, including name, address, member names (if a partnership), and details of the registered agent, such as an attorney, who has been authorized to accept legal documents on behalf of the LLC. Sample Articles of Organization can be found on most state web sites. Once filed and approved by the state, the articles of organization legally create the LLC as a registered business entity within the state. The taxpayer can prepare the articles or consult an experienced business attorney for assistance.

An LLC’s operations are governed by its Operating Agreement, which structures the LLC’s financial and functional decisions, and defines each member’s duties, powers, and responsibilities. An LLC can alter their Operating Agreement to fit business and member needs as frequently as necessary. This document is not required by most states, but it is recommended that one be created to protect the owner(s) and the interests of the business.