A limited liability company is a popular type of legal business structure. When establishing and operating an organization, many documents are required to be legally considered a limited liability company.
While individual state requirements vary, the documents generally used in most states include the articles of organization, operating agreements, and member meeting logs (see Reference 1).
Articles of Organization
This is the most important document needed for the formation of a limited liability company because it outlines the basic structure of the organization. The articles of organization must be filed with the Secretary of State along with the required fees and taxes (see Reference 2).
Operating agreements are not legally required in every state. They are, however, strongly recommended in all states because they establish plans for how the company will operate.
Significance of Agreements
Operating agreements are the organization’s guidelines for important business operating decisions such as members’ rights and responsibilities, ownership and profit sharing (see Reference 1).
Limited liability companies are required by law to hold member meetings at least once a year; the specifics of these meetings must be logged to verify that the meetings take place (see Reference 2).