Who is Really the Organizer of an LLC? – Don’t Make This Mistake + FAQs
- February 22, 2025
- 7 min read
Filing the paperwork for your new LLC, you encounter a line asking for the “organizer.” Who is this mysterious organizer, and is it you, your lawyer, or someone else? 🤔
Many new business owners stumble over this question when forming a limited liability company (LLC).
In official documents like the Articles of Organization, the “organizer” is the person who officially forms the LLC by filing the formation paperwork with the state. But there’s a lot more to understand about this role. Is the organizer the same as an owner? What responsibilities do they have? And do rules change from state to state?
The LLC Organizer in Federal Law vs. State Law 🔍
At first glance, one might wonder if federal law defines who an LLC organizer is. The truth is, LLCs are governed by state law, not federal law. There is no single federal statute that outlines the role of an LLC organizer. Instead, each state has its own rules (often similar, sometimes with slight twists) for how an LLC is formed and who can act as the organizer. Here’s how it breaks down:
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Federal Law Perspective: From a federal standpoint, the term “LLC organizer” doesn’t have a special legal definition. The federal government (e.g. the IRS) cares about your LLC’s existence and tax classification, but it doesn’t require you to identify an “organizer” in any federal filings. For example, when you apply for a Federal Employer Identification Number (EIN) for your LLC, the IRS asks for a “responsible party,” not an organizer. In short, federal regulations do not dictate who the organizer must be – they leave LLC formation details to the states. The organizer’s identity is irrelevant to federal taxes or compliance; what matters federally is who the owners (members) are and how the LLC elects to be taxed.
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State Law Perspective: States are the real authority on LLC organizers. Every state requires some form of Articles of Organization (or Certificate of Formation) to create an LLC, and these documents usually have to be signed or submitted by an “organizer.” State LLC acts (laws) typically define an organizer as the person or entity who signs and delivers the formation paperwork to the state filing office (often the Secretary of State). While the core concept is consistent – an organizer initiates the LLC – the exact requirements or terminology can vary by state.
For instance, Delaware’s LLC law refers to an “authorized person” rather than explicitly using the word organizer. In Delaware, one or more authorized persons must execute (sign) the Certificate of Formation to create the LLC. This “authorized person” serves the same function as an organizer – they are the individual or company taking responsibility for filing the LLC’s formation documents. Other states, like New York or California, explicitly use the term organizer in their statutes and forms. In New York, the LLC law says that any person or entity can act as the organizer by preparing and filing the Articles of Organization. In California, the Articles of Organization form has a section for the organizer’s name and signature.
Despite minor differences in wording, every U.S. state requires an organizer (or equivalent role) to form an LLC. This is a state-level requirement baked into the process of legally creating your company. So, while we often talk generally about “the organizer” for any LLC, remember that any specific rules about who can be an organizer or what exactly they must do will be found in your state’s laws and regulations.
What Exactly Is an LLC Organizer? (Definition and Role)
In plain language, the organizer of an LLC is the person or company that fills out and submits the official formation documents to the state 📝. Think of the organizer as the architect of your LLC’s birth certificate: they provide the necessary information, sign the documents, and send them off for approval. Here are the key points defining the role:
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The Organizer “Organizes” the LLC: The term comes from the idea of organizing (forming) a new LLC. Just as a corporation has an “incorporator” who files the Articles of Incorporation, an LLC has an “organizer” who files the Articles of Organization. This act of filing is often called organizing the LLC – hence the title LLC Organizer for the person doing it.
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Filing the Articles of Organization: The primary duty of the organizer is to properly prepare and file the LLC’s formation document (usually called Articles of Organization, though some states use the term Certificate of Organization or Certificate of Formation). This document typically includes basic information about the LLC: its name, principal address, registered agent, sometimes the management structure (member-managed or manager-managed), and other required details. The organizer will gather all this information and fill out the form.
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Signing and Submitting to the State: The organizer must sign the formation document (physically or electronically, depending on state filing methods) and submit it to the state’s business filing agency (often the Secretary of State or a Corporations Division). They also pay the required filing fee on behalf of the new LLC. Once the state processes and approves the filing, the LLC is officially created.
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Name on Public Record: When the Articles of Organization are filed, the organizer’s name and sometimes address become part of the public record for the LLC. This is often why you’ll see an “Organizer” field on the paperwork. The state keeps a record of who filed the company. This information is generally accessible to anyone who looks up the business registration. (We’ll discuss later why some people choose someone else as organizer for privacy reasons.)
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Not an Ongoing Role in Management: Importantly, being the organizer is usually a one-time role. The organizer’s job is essentially done once the state has approved the LLC’s formation. Organizers do not automatically have any ownership or management rights in the LLC just by virtue of being the organizer. Their authority is limited to the act of forming the LLC. After that, control of the company passes to the owners (members) and/or managers as outlined in the LLC’s operating agreement.
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Multiple Organizers: Can an LLC have more than one organizer? Yes, in many states, the law allows more than one person to act as co-organizers who together file the paperwork. In practice, however, having a single organizer is far more common (and perfectly sufficient). You only need one person to sign the documents. Sometimes, all co-founders might sign to show they’re all involved, but legally it’s not necessary to have everyone as an organizer – one organizer can create the LLC on behalf of all members.
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Organizer vs. “Authorized Person”: As mentioned, some states like Delaware use the term “authorized person” in place of organizer. Functionally, it’s the same role. The authorized person is simply authorized to form the LLC by filing the documents. We can treat the terms as equivalent for our discussion.
In summary, the LLC organizer is the individual or entity who takes on the responsibility of officially registering the LLC with the state. They fill out, sign, and submit the formation documents, and by doing so, they “organize” the LLC into existence. Next, we’ll explore who this organizer can be – because it doesn’t have to be one of the LLC’s owners (though it can be).
Who Can Be the Organizer of an LLC? 🤷♀️
Almost anyone can be an LLC organizer. There are generally no strict requirements that the organizer must be a member (owner) of the LLC, nor even that it be a person within the company at all. Here’s a breakdown of who is eligible and commonly serves as an organizer:
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An LLC Member (Owner): Often, if you’re starting your own single-member LLC or a small multi-member LLC, one of the owners will act as the organizer. For example, if Jane and John are starting a business together, one of them might fill out and submit the formation documents, thereby becoming the organizer. In a single-member LLC, it’s very common for the sole owner to also be the organizer (i.e. you file your own paperwork). This makes sense when the owners are comfortable handling the formation process themselves.
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A Friend or Family Member: Technically, you could ask someone else to file the paperwork for you as a favor, even if they are not going to be an owner of the company. For instance, if you have a friend experienced in business filings, you might have them be the organizer. They would appear on the paperwork as the organizer, but they would not have any stake in the LLC unless you choose to make them a member. This scenario is less common but possible.
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Attorney or Accountant: Many LLCs are formed with the help of attorneys. If you hire a business attorney to set up your LLC, the attorney (or someone from their law firm staff) often acts as the organizer. Similarly, some small businesses might have their accountant handle entity formation. Professionals like these frequently serve as organizers because they are familiar with the process and can ensure everything is done correctly. One benefit here is accuracy and compliance – a professional will make sure all required information is included and the filing meets state requirements.
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Business Formation Service: There are numerous companies that specialize in LLC formations (online services such as LegalZoom, Northwest Registered Agent, ZenBusiness, etc.). When you use a formation service, typically the service will designate one of their staff or a partner as the organizer for your LLC. They prepare and file the paperwork on your behalf. The paperwork will list their name (or the company’s name) as the organizer, not yours.
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The Registered Agent (or their company): Sometimes, the registered agent for the LLC (the person or company designated to receive legal notices for the company) also serves as the organizer. This is especially true in states like Delaware where the only public-facing name on an LLC’s formation documents might be the registered agent or organizer. Many professional registered agent companies will handle the filing as organizer as a convenience for the client. Since the registered agent’s information must be on the formation document anyway, listing them as the organizer too is an easy way to keep the owner’s name off the public record (if that’s desired). However, this only works if the registered agent is actually the one submitting the filing.
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Another Business Entity: An organizer doesn’t have to be a human being; it can be another legal entity. For example, you might have an existing corporation or LLC that helps form a new LLC as the organizer. Law firms often use their firm’s name as the organizer. As long as a real person signs on behalf of that entity, the state will accept it. There’s generally no residency or citizenship requirement either – an organizer could be from out-of-state or even outside the country, as long as the paperwork is filed properly in the LLC’s state of formation. (Do note that while an organizer can be out-of-state, the registered agent must usually have an in-state address as required by law.)
One common misconception is that the organizer must be someone who will be part of the LLC. In reality, the organizer does not automatically become an owner or manager. They can be one and the same (owner-as-organizer), but they don’t have to be. This flexibility allows people to choose an organizer for practical reasons, such as convenience or privacy, rather than ownership.
Are there any restrictions on who can serve? Generally, the bar is low: the organizer should be an adult (18 or older in most cases) with the legal capacity to sign a contract, since forming an LLC is a legal act. It’s also important that the organizer be someone trusted to accurately handle the formation. If you appoint someone organizer, you are effectively authorizing them to create a legal entity on your behalf. So, while your teenage child or a random stranger technically could be an organizer (if they’re of age and so forth), you’d likely stick to someone with a bit of know-how or professional responsibility. Some states might have specific minor wording like “any person may organize an LLC,” which implies natural persons or entities, but doesn’t explicitly limit age — however, as a best practice, use a competent adult.
To sum up, you have options in choosing an organizer. Many entrepreneurs go the DIY route and serve as their own organizer, while others opt for lawyers or services. Next, we’ll delve into why you might choose one over the other, and how the organizer relates to other key players in an LLC.
The Organizer’s Responsibilities (and What They Don’t Do)
What does the organizer actually have to do, and what aren’t they responsible for? It’s important to clarify the scope of the organizer’s duties so you know exactly what this role entails:
Core Responsibilities of an LLC Organizer:
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Preparing the Formation Documents: The organizer must gather all required information for the LLC formation and fill out the Articles of Organization form completely and accurately. This includes details like the LLC’s name, the official address, the registered agent’s name/address, the chosen management structure, and any other state-specific requirements (for example, some states require a stated business purpose or duration for the LLC).
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Ensuring Compliance with State Requirements: A good organizer will make sure the filing meets all the technical requirements. Different states have different forms and rules (some require documents to be notarized, some have specific cover sheets, etc.). The organizer checks that everything is in order so the state doesn’t reject the filing. For example, if your desired LLC name is too similar to an existing business, the organizer should catch that and have you choose a different name before submitting, to avoid a rejection.
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Signing the Articles: The organizer signs the Articles of Organization. This signature attests that the information provided is correct to the best of their knowledge and that they are acting to form the LLC. Depending on the state, this could be a physical signature on a paper form or an electronic acknowledgment if filing online. Some states might allow or require multiple organizers to sign if more than one is listed.
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Submitting the Filing and Fee: The organizer submits the paperwork to the state’s filing office. Today this is often done electronically via an online portal, but can also be done by mail or in person in many states. Along with the documents, the organizer will pay the state’s filing fee (which ranges widely, from around $50 in some states to $500 or more in others). Payment might be made with the organizer’s credit card or check, or the organizer ensures the payment from the LLC owners is passed along.
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Correcting Issues (if needed): If the state finds an issue with the initial filing (say a missing piece of info or a name conflict), the organizer is responsible for fixing those issues. That might mean amending the documents or providing additional information. A knowledgeable organizer aims to get it right the first time, but occasionally errors happen and then they’ll handle the follow-up.
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Public Notice (if required): A few states have an extra step where new LLCs must publish a notice of formation in a newspaper (notably, New York has this requirement). Typically, the responsibility for arranging that publication can fall on the organizer or the members depending on how you handle it. In New York, often the organizer or an attorney will take care of the publication process after filing. This is not common in most states, but it’s part of the organizer’s extended duties in those that require it.
What the Organizer Is Not Responsible For:
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Ongoing LLC Management: The organizer does not manage the LLC’s business, operations, or finances. Once the LLC is formed, management is up to the members or designated managers. The organizer doesn’t suddenly get an ownership stake (unless they were also named a member separately) and doesn’t make decisions for the company moving forward just because they filed the paperwork.
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Paying the LLC’s Taxes or Debts: The organizer’s role is limited to the formation. They have no obligation to contribute money to the LLC, pay its taxes, or cover its liabilities. Those responsibilities fall to the company itself and its owners. For example, if John is an attorney who organized an LLC for a client, John is not on the hook for any debts the LLC incurs down the road – he was just the organizer, not an owner or guarantor.
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Continuing Compliance Filings: After the LLC exists, there are often ongoing compliance tasks (like annual reports to the state, or annual franchise taxes/fees in some states). The organizer isn’t automatically responsible for these. Sometimes an organizer (like a service company) might offer to handle these for an extra fee, but by default, it’s the LLC management’s job to ensure continued compliance.
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Operating Agreement or Internal Documents: Drafting an Operating Agreement (the internal contract among LLC members) is typically not the organizer’s job, unless you specifically hired them (like an attorney) to do that as part of the formation package. The organizer’s statutory role is just to file the public formation document. Creating the operating agreement and other internal documents (like initial meeting minutes, membership certificates, etc.) is usually up to the members or their lawyer after formation. However, as we’ll see next, the organizer may have a small part to play in kicking off internal organization, such as issuing a statement handing over the reins to the members.
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Long-term Authority: Once the LLC is formed, the organizer generally has no continuing authority. They cannot open bank accounts for the LLC or sign contracts for the LLC just because they were the organizer (unless they have another role, like being hired as an officer or manager).
In essence, the organizer’s responsibilities are crucial but short-lived – get the LLC legally formed and then step back.
Organizer vs. Member vs. Manager: Untangling the Titles 🤝
LLC terminology can be confusing, so let’s clarify how an organizer differs from other roles like members and managers, which are core to LLCs.
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LLC Organizer vs. LLC Member (Owner): An LLC member is an owner of the LLC, holding a membership interest (similar to a shareholder in a corporation). Members invest capital, share in profits and losses, and ultimately have the say in how the business is run (unless they appoint managers). In contrast, the organizer may have zero ownership interest. The organizer is simply the person who filed the paperwork. If you file your own LLC, you are both the organizer and a member. But if your attorney filed it, your attorney is the organizer and not a member (assuming they have no ownership in your business). A key difference: members are listed in the operating agreement and company records, but members are usually not listed on the public formation documents filed to the state (with a few exceptions). The organizer’s name is on the public filing, but members’ names often are not part of that filing. That’s why an organizer can be someone not in the company, and why additional documentation is needed to link the owners to the LLC after formation.
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LLC Organizer vs. LLC Manager: A manager in an LLC is a person (or persons) chosen to run the day-to-day operations of the company, in an LLC that is manager-managed. (If an LLC is member-managed, then the members collectively manage it, and there may be no separate “manager” title.) Managers make business decisions, sign contracts on behalf of the LLC, hire employees, etc., according to the authority given to them in the operating agreement. The organizer, however, is not a management role. Organizing the LLC doesn’t give someone any managerial power by itself. Even if an attorney organizes the LLC for you, they don’t become a manager of your LLC (unless later appointed as such, which would be unusual). Think of it this way: the organizer’s job is over before the LLC even starts operating as a business. Once the LLC is born, managers (or members, if member-managed) take over running the show.
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Organizer vs. Registered Agent: The registered agent is another person/entity listed in the formation documents, which can lead to confusion. The registered agent is required in all states – this is the official contact who can receive legal papers (like lawsuit documents or government notices) for the LLC. The registered agent must have a physical address in the state and be available during business hours. Now, the organizer might list the registered agent’s information in the filing, but the organizer and registered agent have different roles. The organizer is a one-time role for creation of the LLC; the registered agent is an ongoing role for the life of the LLC. Sometimes, as discussed earlier, a registered agent service will also act as the organizer (doing both tasks), but if you see two names on the Articles – one labeled organizer, one labeled registered agent – don’t mix them up. The organizer doesn’t automatically become the registered agent or vice versa (again, unless chosen to do so).
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Organizer vs. Incorporator (Corporation context): If you’re familiar with corporations, you might know that corporations have an incorporator who signs the Articles of Incorporation. The LLC organizer is the equivalent of the incorporator. Both are roles for the formation of the entity. The incorporator’s job ends after the corporation is formed, just like an organizer’s job ends after the LLC is formed. In fact, some states’ LLC laws use language similar to corporate laws, making it clear that organizers have no post-formation rights by default. This comparison helps underscore that organizer is a formation role, not an ownership or management position.
Quick Comparison Table:
Role | When It Acts | Main Purpose | Continues After Formation? |
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Organizer | During LLC formation | Files official documents to create the LLC | No (role ends once LLC is formed) |
Member (Owner) | After formation (ownership exists once LLC exists) | Invests capital, owns a share of LLC, can manage if member-managed | Yes (ownership is ongoing) |
Manager | After formation (if applicable) | Manages LLC’s daily operations (if members elect manager-managed structure) | Yes (manages the business long-term) |
Registered Agent | Designated at formation (and can be changed) | Receives legal notices for LLC on an ongoing basis | Yes (must be continuously maintained) |
Incorporator (for corporations) | During corporation formation | Signs and files documents to create a corporation (analogous to LLC organizer) | No (ends after corporation is formed) |
As shown above, the organizer is essentially a temporary, formation-specific role, whereas members, managers, and registered agents have ongoing roles tied to the existence and operation of the company.
Understanding these distinctions helps prevent confusion. For example, a bank or landlord might ask, “Who are the members of this LLC?” – they’re not asking for the organizer; they want to know the owners. Conversely, if a formation form asks for the organizer’s name, you wouldn’t put all the members’ names there (unless you want them all to sign as co-organizers). You’d put the designated organizer’s name.
State-by-State Nuances: Does the Organizer’s Role Change?
Now, let’s talk about state nuances. While the fundamental concept of an organizer is consistent, some states have unique requirements or terminology. Here are some notable examples and variations across states:
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Delaware: As mentioned, Delaware refers to the organizer as an “authorized person.” Delaware LLC law is very flexible and does not require listing any members or managers in the Certificate of Formation. You just need the name of the LLC, the registered agent, and the signature of the authorized person who files. This means Delaware LLCs can be formed with complete anonymity for the real owners at the state level – only the organizer/authorized person (often a registered agent or attorney) is listed. Once the LLC is formed, Delaware doesn’t even require annual reports listing members (unlike many other states). This is one reason Delaware is popular: privacy and simplicity. The organizer’s role in Delaware is just to file; after that, the state doesn’t ask “who are your members?” at formation or annually.
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California: In California, the Articles of Organization explicitly call for an Organizer’s name and signature. After forming the LLC, California law requires a Statement of Information filing within 90 days, which must list the LLC’s managers or members and other details. So, while the organizer might temporarily be the only name on the initial Articles, California will soon require disclosure of who is managing or owning the LLC in that follow-up filing. California also uses the term “Organizer” plainly, and it could be anyone – an attorney, the business owner, etc. Notably, California allows the Articles of Organization to be signed by an organizer even if that organizer is not going to be a member or manager. The organizer in CA is not presumed to have any ownership just from signing.
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New York: New York’s LLC law states that one or more persons called “organizers” can form an LLC by signing the Articles of Organization. The organizer can be a person or legal entity. New York doesn’t require the members to be listed on the Articles, only the organizer. However, after filing, New York has that publication requirement (LLC must publish notices in newspapers and file a publication affidavit). Often the organizer or an attorney will handle that publication step for the new LLC. Once again, the organizer’s involvement after filing might include helping with this extra requirement, but the law doesn’t give the organizer any special status beyond filing the paperwork.
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Texas: Texas refers to the person forming the LLC also as an “Organizer,” and requires their name and address in the Certificate of Formation. Texas allows the organizer to be anyone – they explicitly say the organizer does not have to be a member or manager. Texas law also suggests that after formation, if initial managers or members were not named in the Certificate (which Texas doesn’t require to list members either), the organizer can take actions to officially hand over the company to the members. For example, Texas and many other states allow an organizer to sign an initial resolution or Statement of the Organizer that records the initial members and then resigns as organizer.
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Florida: Florida’s LLC Act similarly requires an organizer to sign the Articles. Florida doesn’t require member names at filing. One quirk: Florida (like some states) requires a statement in the Articles that the LLC has at least one member. Often the organizer will just include a line or check a box confirming the LLC will have at least one member upon formation. This ensures “empty” LLCs aren’t formed without owners. The organizer might make that declaration, but they don’t have to be that member.
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Other States: Almost all other states follow the pattern that the organizer is simply the filer. Some states might use slightly different form names or have multiple signers, but none make the organizer an ongoing role. A few states might incorporate the initial management setup in the formation documents. For instance, some states allow or require you to indicate if the LLC is manager-managed and optionally name the initial managers in the Articles. In those cases, those managers might be listed, but that’s separate from the organizer. The organizer still is just the one who signs the form. If initial managers are listed, that doesn’t make them organizers (unless they also sign as such).
In short, state laws unanimously agree on what an organizer does – form the LLC – but differ on what information is collected at formation. The key nuance for organizers is often about privacy and disclosure: states like Delaware keep owners off the formation record entirely, while states like California will get that info soon after via another filing.
Below is a quick illustration of different state approaches to the organizer and formation details:
State | Term Used | Organizer’s Info on Public Filing? | Members/Managers on Public Filing? | Special Notes |
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Delaware | Authorized person | Yes (name of authorized person listed) | No (members not listed; no annual disclosure) | High privacy for owners 🕵️ |
California | Organizer | Yes (name and signature of organizer) | Not in Articles, but in a required Statement of Information within 90 days | Follow-up filing reveals owners/managers |
New York | Organizer | Yes (name and address of organizer) | No (members not in Articles) | Must publish formation in newspapers |
Texas | Organizer | Yes (name and address of organizer) | No (members not listed in Certificate) | Organizer can be anyone; often signs a Statement of Organizer post-formation |
Florida | Organizer | Yes (organizer signs, name on Articles) | No (members not listed in Articles) | Articles must state LLC has at least one member (organizer declares this) |
Illinois | Organizer | Yes (name and address of organizer) | No (members not listed in Articles) | Similar to standard practice, organizer signs to file |
(Note: “No” in members/managers on public filing means the state doesn’t ask for member names in the initial formation document. Many states do require later annual reports listing managers/members or officers.)
As you can see, the organizer’s fundamental role is stable across all states – they form the company – but what gets disclosed at formation varies. If privacy is a concern, knowing these differences matters (e.g., choosing Delaware or Wyoming to form your LLC might keep your ownership quieter, whereas other states will make ownership known in public filings eventually).
Why Does the Organizer Matter to You? (Choosing the Right Organizer)
If you’re in the process of forming an LLC, you might wonder how much it matters who the organizer is. Choosing the organizer is an important small decision that can have practical implications:
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Accuracy and Success of Filing: First and foremost, you want your LLC formed correctly and without delays. A skilled organizer (like an experienced attorney or formation service) will likely get your paperwork right on the first try, avoiding rejections. If you DIY, ensure you double-check everything. Mistakes in the filing can lead to rejections or the need to file amendments later, which costs extra time and money.
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Privacy Considerations: As we discussed, the organizer’s name goes into public records. If you, as the business owner, don’t mind your name being on the public Articles of Organization, then acting as your own organizer is fine. However, if you prefer to keep your name off the initial formation documents, you might opt to have someone else be the organizer. For example, many entrepreneurs forming an LLC in a state that doesn’t list members will deliberately use their lawyer or a service as the organizer. This way, only the lawyer’s or service’s name is on the state records, and the owner’s name might only appear on internal documents (operating agreement, etc.) and perhaps later filings. This can provide a layer of privacy or anonymity regarding ownership. Keep in mind, this is about public records – you might still need to disclose ownership in other contexts (banks, tax filings, or new federal beneficial ownership databases), but not on the state’s public site.
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Control and Trust: The organizer will be the one to actually execute the formation. If you’re using someone else, you need to trust them with this task. If you use an attorney or reputable service, you’re generally safe. If you have a friend do it, make sure they will follow through promptly and correctly. Using a third-party organizer means you’re hands-off with the state interaction, which can be convenient, but ensure you get all the documents once the LLC is formed (you should receive the filed Articles or a confirmation from the state).
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Cost: Hiring an attorney or a formation company will cost money (on top of state fees). Being your own organizer is essentially free (aside from state fees). If budget is a big factor and the formation seems straightforward, many people successfully do it themselves. On the other hand, the cost might be worth it to avoid errors or to get legal advice during the process.
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Legal Advice: An attorney-organizer can provide legal guidance during formation that you might not get if you file on your own. They can advise on things like how to word certain provisions, whether to choose a manager-managed structure, and they will typically help draft the operating agreement. If you only use a filing service as organizer, they won’t give legal advice – they’ll just fill in what you tell them. So, consider if you need counsel at this stage.
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Multiple Founders Alignment: In a multi-founder scenario, deciding who is the organizer is sometimes just a matter of who’s taking point on the paperwork. It might be clear (“Alice will handle the filings for our startup LLC, and Bob and Carol will just be listed as members internally”). In other cases, all founders might want to be part of the process. Remember, only one organizer name is needed, but you could list multiple if you really wanted to. Typically, though, one organizer is chosen to keep things simple. Ensure all founders are comfortable with that and that the organizer will share the control once the LLC is formed.
Choosing an Organizer – Scenarios and Options:
To better illustrate how you might choose an organizer, here’s a quick comparison of common approaches:
Formation Method | Organizer | Benefits | Considerations |
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DIY (Do-It-Yourself) | You (the owner) | Direct control; no extra fees. You handle everything, so you immediately receive all state filings and confirmations. | Your name on public record. Must learn and follow all procedures yourself. Risk of errors if unfamiliar with forms. |
Attorney-Led Formation | Your attorney or legal staff | Expert handling; legal advice included. Increases chance of quick, correct filing. Keeps your personal name off the public formation docs (attorney listed instead). | Legal fees can be high. Slightly slower if you need to coordinate info with attorney. Need to trust the attorney to pass you all documents and not retain any authority (good attorneys will formally resign as organizer). |
Online Formation Service | Service’s employee/agent | Convenient and often faster (they know the drill). Moderately low cost compared to an attorney. Keeps your name off public record (service’s name as organizer). | Service fees (though lower than attorney). No personalized legal advice (they fill in what you provide). Make sure the service is reputable and will deliver your documents promptly. |
Using Registered Agent service as Organizer | Registered Agent (individual or company) | Privacy and simplicity: one party is both organizer and registered agent. They are experts in filings for that state. Minimizes number of parties involved. | The registered agent must agree to file for you (often it’s an offered service). If you change registered agents later, it doesn’t affect the past organizer listing (that’s fine, just something to note). |
Friend/Family Helper | Trusted friend or relative | Avoids professional fees; their name, not yours, is on the filing (if privacy is desired). | They must be reliable and knowledgeable enough to not screw up the filing. They should provide you with all login info or receipts from the state filing. Potential awkwardness if something goes wrong. |
As shown, each method of organizing has its pros and cons. The right choice depends on your priorities: saving money, keeping privacy, getting legal guidance, etc.
One more angle to consider: If you use a third-party as organizer, what happens after formation? Let’s cover that next.
After Formation: The Organizer’s Role (Wrapping Up and Handing Over)
After your LLC is officially formed by the state, what becomes of the organizer? Here’s what typically happens post-formation:
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Organizer’s Authority Ends: In most cases, once the state issues the certificate or confirmation that the LLC is formed, the organizer’s legal role is finished. If the organizer is not going to be involved in the LLC as an owner or manager, they should step aside formally. They do not continue to have any say in the LLC’s affairs just because they were the organizer.
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Statement of Organizer (Resignation): If the organizer was someone other than the owners, it is a best practice (and some would say implied duty) for the organizer to sign a brief statement or document that officially hands over the LLC to its members. Often called a “Statement of the Organizer” or “Organizer’s Resignation,” this document says, in effect: “I, the organizer, having fulfilled my duty of forming the LLC, now hand control over to the members (or the managers as named by the members). I have no further role in the company as an organizer.” The statement might also list the initial members by name to establish who the true owners are from day one. While not required by law in many jurisdictions, this step is helpful for record-keeping. It provides a clear paper trail that the organizer has finished their job and that the LLC’s ownership and management are as per the operating agreement. Many attorneys and formation services include such a statement in the LLC kit they give to clients.
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Initial Organizational Meeting or Consent: After formation, the members should hold an initial meeting or sign an initial written consent to take care of early tasks (like approving the operating agreement, admitting members formally, electing managers if applicable, authorizing opening bank accounts, etc.). If the organizer is not a member, the organizer typically is not part of this meeting. However, sometimes the organizer will facilitate it by preparing a template for the initial meeting minutes for the members to use. In a corporation, the incorporator often calls the initial meeting of shareholders or directors then resigns; similarly, an LLC’s organizer might prepare an outline for the members to follow for their first actions.
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Documentation for Banks or Third Parties: As mentioned earlier, when an organizer is not an obvious owner, third parties might question the discrepancy. For example, if you go to a bank to open an LLC bank account, the banker might look at your Articles of Organization. If the Articles were signed by an organizer (say an attorney) who isn’t you, and your name isn’t on that document, the banker will want proof that you have authority in the LLC (i.e. you’re an owner or manager). Typically, your Operating Agreement and perhaps the Statement of Organizer or an initial resolution can serve as proof. The Operating Agreement will list the members (and managers if any) and is signed by them. Showing that, along with the filed Articles, makes it clear that although John Doe, Esq. was the organizer, you are the member/manager now running the company. So it’s wise to have those internal docs prepared soon after formation.
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Organizer as Member/Manager: If the organizer was also one of the owners (for example, you organized your own single-member LLC), then post-formation there’s no separate resignation needed – you simply continue as the member. You would just proceed with your business, possibly have an initial meeting with yourself (in a single-member LLC this is more of a formality to adopt the operating agreement), and comply with any initial filing like a Statement of Information if required in your state. The key takeaway is that in this scenario you wore two hats: organizer during formation, and now you’re wearing the member hat going forward.
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Liability of Organizer: Generally, the organizer isn’t liable for the LLC’s debts or legal issues simply due to being the organizer. However, one should always be truthful on the formation documents. If an organizer knowingly filed false information (for example, lying about the LLC’s address or purpose), there could be legal penalties under state law for filing a fraudulent document. But assuming the organizer did their job correctly, they are not responsible for what the LLC does later. The LLC is its own legal entity, separate from the organizer.
In summary, after the LLC is up and running, the organizer fades into the background. If the organizer was a third party, they should formally pass the baton to the actual owners. If you were your own organizer, you simply carry on as the owner. Either way, the organizer’s role is concluded, and the LLC’s ongoing governance is in the hands of its members and managers as set out in the operating agreement and relevant law.
Common Misconceptions about LLC Organizers
To wrap up the main content, let’s address a few misconceptions that often arise regarding LLC organizers:
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“The organizer is the owner of the LLC.” – Not necessarily. The organizer can be an owner, but doesn’t have to be. Many times, the organizer has zero ownership. Always distinguish between the person who filed the paperwork (organizer) and the people who invested money and own the company (members).
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“The organizer has legal authority in the LLC after formation.” – False. The organizer’s authority typically ends at formation. Unless they assume another role (like being hired as an LLC’s attorney or given power of attorney for some reason), they can’t make decisions for the LLC just because they formed it.
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“I need to hire a professional to be my organizer, otherwise my LLC isn’t legit.” – No, you don’t need to. Hiring a pro can be helpful, but plenty of business owners organize their LLC themselves successfully. The state does not require an attorney or service to file – it’s an option, not a mandate.
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“All the founders have to be listed as organizers.” – Not true. One organizer can form the LLC on behalf of everyone. There’s no legal requirement to have every member sign the formation documents. As long as it’s okay within your group who does it, the state is fine with just one or a subset of organizers.
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“The organizer’s name can be removed from records later.” – Generally, no. Once the Articles of Organization are filed, the organizer’s name stays part of that historical filing. You usually cannot amend the filed document to delete or change the organizer’s name after the fact (since it was true that they did file it). However, this usually isn’t an issue unless the organizer really wanted their name hidden. If privacy was a concern, better to use someone else from the start. If you filed yourself and later wished you hadn’t used your name, there’s not much to be done – but remember, being listed as an organizer is not a big deal legally.
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“Using a service as organizer means I’m not the founder.” – Some people get confused when they see someone else’s name on their LLC paperwork as organizer. They worry, “Does that mean it’s not really my company?” Rest assured, if you hired a service, you are the member/owner as stated in your internal documents. The service’s role was just clerical. You are still the founder/owner; the service can’t claim any ownership just because they helped file it.
Having cleared these misconceptions, you should feel confident about what an LLC organizer is and isn’t.
Below, we’ll answer some frequently asked questions, particularly those that pop up on forums and discussion boards, to address any lingering curiosities about LLC organizers.
FAQ: LLC Organizer Questions 🤔
Q1: Can the organizer of an LLC be the owner?
Yes. An LLC’s owner (member) often serves as the organizer when they file their own paperwork. However, the organizer doesn’t have to be an owner – it can be an external person or service.
Q2: Is the LLC organizer the same as the registered agent?
Not by default. The organizer files the formation documents, while the registered agent receives legal notices. They can be the same person or company if you choose, but it’s not automatic.
Q3: What information of the organizer becomes public?
The organizer’s name and sometimes address appear on the Articles of Organization, which are public records. Personal details like phone or email are usually not required, just name and address.
Q4: Does being an organizer make me liable for the LLC?
No, the organizer isn’t liable for LLC debts or lawsuits just for filing the paperwork. Liability falls on the LLC itself and any members or managers under normal legal principles, not on the organizer.
Q5: Can I have multiple organizers for my LLC?
Yes, you can list more than one organizer in most states. However, it’s not necessary – one organizer can create the LLC. Many filings only have one organizer to keep it simple.
Q6: How do I remove or change an organizer?
You generally cannot change the historical organizer on the formation documents once filed. If an organizer was listed by mistake, you might file an amendment or correction, but usually the original organizer remains part of the record.
Q7: Why would I not want to be my own organizer?
Privacy or convenience. If you prefer your name not be on public formation records, or you want a professional to handle the filing to avoid errors, you might use someone else (lawyer/service) as the organizer.
Q8: Do I need to do anything special if my organizer is not a member?
It’s wise to have the organizer sign a Statement of Organizer to formally hand off the LLC to the members. Also, ensure you have an operating agreement listing the members, so there’s clear documentation of ownership.
Q9: Is the term “organizer” used in all states?
Most states use “organizer,” but some use terms like “authorized person” (e.g. Delaware). Regardless of the term, it refers to the person who files the LLC’s formation documents.
Q10: If I use an online service as the organizer, how do I prove I own my LLC?
Your operating agreement and the service’s documentation will designate you as the owner (member). The service’s role ends at formation. Use your internal documents to prove ownership to banks or others.
Q11: Can a non-US resident be an LLC organizer?
Yes. There’s no citizenship requirement for who can organize an LLC. A non-US resident can file the paperwork (often done online or via mail). They do need a reliable registered agent with a US address.
Q12: Does the organizer have to be present in the formation state?
No. The organizer can file remotely. Many people form LLCs in other states without ever being there. The key requirement is an in-state registered agent, but the organizer themselves can be anywhere.
Q13: What’s the difference between an organizer and a company’s founder?
“Founder” is an informal term for the person who started the business or had the idea. The organizer is a legal role for filing paperwork. Often they are the same (you founded the company and you filed the paperwork). But if you hired someone to file, you’re still the founder/owner, and they’re just the organizer on record.
Q14: Do I have to list the organizer in the Operating Agreement?
Not usually. The Operating Agreement focuses on members, management, and operations. The organizer might be mentioned in a recital if at all. If the organizer is not a member, they generally aren’t part of the Operating Agreement’s substantive terms.
Q15: Will the organizer be contacted for official matters after formation?
Generally no. Once the LLC is formed, the state and others will contact the registered agent or the LLC’s official address for any matters. The organizer’s role is done, so they typically won’t receive further communications (unless the organizer and registered agent are the same, or the organizer listed their address as the LLC’s initial office).
Q16: Can an LLC organizer also be the LLC’s lawyer or accountant later?
Yes, if that person is professionally engaged for those roles. An attorney might organize the LLC and continue to serve as legal counsel for the company. But these are separate roles; one could be organizer and also be hired for other services.
Q17: Does having an attorney as organizer increase attorney-client privilege?
Forming an LLC is generally a matter of public record, so the fact of filing isn’t privileged. However, any legal advice given by the attorney during the process is covered by attorney-client privilege. Having them as organizer doesn’t change that either way, it’s the communication that is privileged, not the act of filing.
Q18: If an LLC fails or is dissolved, does the organizer have any responsibility?
No. If the business later dissolves or fails, the organizer isn’t responsible for that outcome. Their job was just to create the LLC. However, if the organizer is also a member or manager, that’s different – then they have stake as an owner or duties as a manager. But just as an organizer, they have no ongoing responsibility for the business’s success or failure.
Q19: Can I change my registered agent without changing the organizer?
Yes. The organizer is a one-time role at formation, and the registered agent is an ongoing role. You can change your registered agent anytime following the procedure in your state (usually filing a change form), and it has no effect on who the organizer was on the original filing.
Q20: What’s a “professional organizer” in this context?
Be careful: “professional organizer” can also mean someone who organizes your closets and office (totally unrelated!). In the LLC world, a professional organizer refers to a person or service that specializes in forming businesses. They professionally handle the filings. It does not mean they run your business; they just professionally deal with registration paperwork.