Article of Organization Sample: A Comprehensive Guide
The Article of Organization is a crucial document for any business entity, especially for those operating as a limited liability company (LLC). This legal document outlines the basic structure and management of the company, ensuring that all members are aware of their rights, responsibilities, and roles. In this article, we will provide a sample Article of Organization and explain its key components to help you understand its importance and structure.
Understanding the Article of Organization
The Article of Organization is a formal document that must be filed with the appropriate state agency to legally establish an LLC. It serves as the foundation for the company’s operations and governs the relationships between its members. The document typically includes the following key elements:
1.
Name and Address of the LLC
The first section of the Article of Organization specifies the name of the LLC and its registered address. This information is vital for legal and administrative purposes.
2.
Management Structure
This section outlines the management structure of the LLC, including whether it will be managed by members (member-managed) or by designated managers (manager-managed). It also identifies the initial members and managers, along with their contact information.
3.
Duration of the LLC
The Article of Organization may include the duration of the LLC, which can be perpetual or for a specific number of years. If the LLC is set to dissolve after a certain period, this section will detail the terms of dissolution.
4.
Capital Contributions
This section describes the capital contributions made by each member, including cash, property, or services. It also specifies the percentage of ownership each member holds in the LLC.
5.
Amendments and Dissolution
The Article of Organization may outline the process for making amendments to the document and the conditions under which the LLC can be dissolved.
Article of Organization Sample
Below is a sample Article of Organization for an LLC:
“`
ARTICLE OF ORGANIZATION
Name of the Limited Liability Company: ABC Company, LLC
Registered Office Address: 123 Main Street, Anytown, USA
Management Structure: Member-managed
Duration of the LLC: Perpetual
Capital Contributions:
– John Doe: $50,000 (20% ownership)
– Jane Smith: $30,000 (12% ownership)
– Michael Johnson: $20,000 (8% ownership)
Amendments and Dissolution:
Any amendments to this Article of Organization must be approved by a majority of the members. The LLC may be dissolved upon the occurrence of any event specified in the Operating Agreement or by the consent of all members.
IN WITNESS WHEREOF, the undersigned members of ABC Company, LLC, have executed this Article of Organization as of this 1st day of January, 2022.
John Doe
Jane Smith
Michael Johnson
“`
Conclusion
The Article of Organization is a vital document for any LLC, as it outlines the company’s structure, management, and ownership. By familiarizing yourself with the key components of an Article of Organization, you can ensure that your LLC is legally compliant and well-prepared for its operations. Remember to consult with an attorney or legal professional when drafting and filing your Article of Organization to ensure that it meets all state requirements.
