If you’ve spent any time on this blog or researching how to incorporate your business online, you’ve probably found some terms you weren’t really clear on and had questions. What’s the difference between an LLC and a corporation? What paperwork do I need to file annually? What are Articles of Organization, and do I need them?
Let’s address that last question and talk about Articles of Organization.
First, the LLC vs Corporation Discussion
While ultimately, the LLC and corporation are different, they both provide similar protection and tax benefits. Also, when you either form an LLC or a corporation, there are a lot of similarities in the processes. For both, you have to fill out an application and submit a fee (though the paperwork varies slightly and the fees may be different from one another).
That paperwork is either called Articles of Incorporation (for…you guessed it! Corporations) or Articles of Organization (for LLCs). They serve the same purpose, but don’t really cross streams.
So, to answer your question: you only need to fill out and submit Articles of Organization if you plan to file as an LLC. If you are incorporating as an S Corp (or any other type of corporation) you do not need to fill out Articles of Organization.
More on Articles of Organization
If, on the other hand, you’re filing as an LLC, keep reading. Also referred to as Certificate of Organization, your Articles of Organization are required by the state you want to form your LLC in. Typically, you can either file the document online through the Secretary of State website or print and fill out a PDF template and submit it. Alternately, CorpNet can take care of your Articles of Organization for you.
What’s Included in Your Articles of Organization
While every state’s paperwork will be slightly different, you’ll typically need to fill out the following information on your Articles of Organization:
- Your LLC’s name and address
- The nature of the business
- The name and address of your registered agent (that would be CorpNet if you hire us to form your LLC)
- Name of manager(s) and members of the LLC
Once your LLC’s Articles of Organization are approved, you will be able to operate as an LLC and take advantage of the benefits it provides. Do note that you may be required to file an Annual Report for your LLC and pay an annual renewal fee.
Ready to form your LLC? Let CorpNet help. We can get your LLC processed and approved in as little as 24 hours.
Image: Dollar Photo Club