How must an LLC be formed?

An LLC, or Limited Liability Company, must be formally created by filing Articles of Organization with the state in which it will operate. This is a crucial step because it legally establishes the LLC as a recognized entity under state law, which provides benefits such as limited liability protection for its members and a specific framework for how the business will operate.

Filing the Articles of Organization typically requires information such as the name of the LLC, the principal office address, and the names of the members or managers. Additionally, this filing often includes payment of a registration fee. Once the state processes this filing and issues a certificate of formation, the LLC is officially created and can begin operating legally.

While having a written operating agreement is highly recommended to outline the management structure and operating procedures of the LLC, it is not a requirement for formation. Similarly, a verbal agreement or a partnership agreement does not satisfy the legal requirements for forming an LLC. Issuing stock pertains to corporations rather than LLCs, which do not utilize stock as a form of ownership. Therefore, filing the Articles of Organization is the definitive action necessary to form an LLC.