How To Avoid Issues on Your Articles of Organization

How To Avoid Issues On Your Articles Of Organization

Registering as a limited liability company (LLC) is a popular way of structuring a business. To do this, a company will have to go through the business formation process. That includes the submission of the Articles of Organization.

Why Articles of Organization Are Necessary

Submitting this paperwork will formalize the registration of the LLC. At the same time, it ensures the legality of the business operations in the state. 

Generally, state laws for business entities aim to protect consumers and residents in the state. There will be requirements and obligations that a company has to comply with. The governing agency designed this paperwork to obtain information related to a company doing business in the state.

Information Needed

While each state may require different pieces of information, there are common ones that are required in most states. These include the following:

  • Company Name
  • Effective Date
  • Principal Business Location
  • Name And Address Of The Registered Agent
  • Statement Of Purpose
  • Management Structure 
  • Duration Of The Business
  • Authorized Signatures

Avoiding Issues on the Articles of Organization

Filing the document and paying for the corresponding fee does not guarantee success in forming an LLC. The governing agency will review the form and determine whether it will approve the registration.

Some companies get rejected because of certain issues found in their Articles of Organization. Here are some of them: 

  • Non-Compliance with State Requirements

As mentioned earlier, the necessary pieces of information will depend on the state. That means that the Articles valid in one state may not meet the requirements in another. Therefore, it is important to use state-specific forms. In most cases, the Secretary of State offers readily available forms that can be downloaded and filled out. However, some states allow companies to draft their own Articles.

  • Incorrect LLC Name

States have naming regulations that business entities need to follow. For LLCs, that includes the use of a proper designator. It can be the phrase “Limited Liability Company” or “Limited Company.” Any of the abbreviations of those two phrases, such as “LLC,” “LC,” or “Ltd. Co.,” are also acceptable.

Most states, if not all, also require a company name to be distinguishable. That means a company can not use a name if another entity in the state has already claimed it. It is crucial to ensure that the LLC’s name is unique. Failure to do so can lead to the rejection of the Articles.

A simple way to prevent state rejection due to naming issues is to conduct a business entity check on the database of the state agency in charge of overseeing companies. If the LLC name is still available for use but the company is still not ready to proceed to the business formation process, then it may opt to apply for a reservation of name. Doing this involves the filing of a state form and payment of the corresponding fee.

  • Wrong Choice of Registered Agent

States require LLCs to appoint and maintain a registered agent. They will serve as the point of contact of the company with the state. The registered agent will receive all legal correspondence on behalf of the company. That is why it is necessary to find the registered agent best for the business.

Most states allow the appointment of either an individual or an organization. However, there are certain qualifications they need to meet. Check out our state-specific articles to learn more. Choosing an unqualified agent can cause issues with the company’s Articles.

  • Absence of a Valid Registered Office

Along with the name of the registered agent, the state formation documents require the disclosure of a registered office. In most cases, it has to be a physical street address and not a P.O. box. The registered office should also be accessible, and the registered agent has to be available at that address during regular business hours.

Get Help with the Articles of Organization

There are state-specific requirements a company has to comply with to form a business venture. For some entrepreneurs, handling these tasks and taking care of the Articles of Organization may be a bit much. It might be hard for them to set a time to complete all of the steps. That is where DoMyLLC comes in.

Our team of experts has extensive experience in handling business formation requirements in all 50 states, including the District of Columbia. We can also serve as a registered agent as we are authorized to do business in all states. The knowledge we have acquired through the years can help ensure compliance while making the whole experience hassle-free for you. Contact us now to find out more about our services.