When forming a limited liability company (LLC) in the United States, a document called the articles of organization is required in order to form. These legal documents establish the company at the state level. All the rights, duties, powers, obligations, and liabilities of each member are outlined in the articles of organization.
What is the Purpose of the Articles of Organization
The articles of organization are required to be filed with the New Mexico secretary of state. Along with your filing, you will need to pay a $50 filing fee as well. This is how you form and establish an LLC.
Although sometimes the articles of organization are called something else in different states, they always have the same purpose, to form your LLC. The articles are an outline of your company. Every state has different requirements for what needs to be included, but they all explain the purpose of the business and who is involved in the LLC.
Without these documents, your LLC will not be established, nor be a real company in the eyes of the law. You will need to establish your company if you wish to have a business bank account, or apply for business loans.
Information that needs to be included
in Articles of Organization
When forming an LLC you should choose a unique name for the company. This must be completely unique in the state of New Mexico.
Statement of Purpose
Every business has a purpose, whether that is to sell goods or to offer a service. the description of the business should be included in the articles of organization.
Some LLCs are set up as temporary, but depending on how long you plan to operate the business, this should be defined and included.
Place of business
Mailing address where the principal business will take place. If the business is primarily online, you can include your personal address.
Every LLC in the state of New Mexico is required to have a registered agent. This person is someone that accepts documents and important tax information on behalf of the company. They must also have a street address in the state of New Mexico, and sign a form acknowledging and accepting the position.
Information about company owners, managers, and officers must be included as well.
Articles of Organization vs
Articles of Incorporation
When forming a corporation, you are required to file the articles of incorporation. When forming an LLC, you are required to file the articles of organization. Although the content of both the articles of organization and the articles of incorporation are similar, they have one main difference and that is their purpose.
Because the articles of organization are always used to establish an LLC, they can only be used for that purpose. The articles of incorporation are used to create a corporation, and only for that purpose.
Cost of Filing Articles of Organization
The state requires businesses to pay a fee when filing the articles of organization. In New Mexico, this is a $50 fee, paid to the New Mexico Secretary of State.
How to File Articles of Organization
Filing the articles of organization involves selecting a unique name in the state of New Mexico. It should also end with the words “Limited Liability Company”, “LLC”, or “L.L.C”.
List the street address of your principal palace of business.
List Your Registered Agent
Every LLC is required to have a registered agent in the state of New Mexico. This person should have a physical address in the state and be able to accept due process for the company. It can be an owner, employee, or third party.
List Managers and Members
Managers usually work for the company, and members are owners. You should include the names and addresses of each person authorized to make management decisions for your LLC.
List Effective Date
The date that your LLC will go into effect is the first day of operation. This is the same day that your filing is accepted. If you choose a different day, this must be defined in the articles of organization.
Send to New Mexico Secretary of State
The articles of organization can be filed with the secretary of state in New Mexico. This can be done online, in person, by mail, or by fax. Online filings are usually processed the most quickly.
Reasons Articles of Organization may be rejected
If you make mistakes when filing your articles of organization in New Mexico, they may be rejected. One reason you might be rejected is due to forgetting to pay the proper fee. In this case, you will need to resubmit with the fee.
Articles of organization may also be rejected because of an issue with the name of the LLC, as it must be unique in the state of New Mexico. If other legal formalities were not met, you will get a rejection letter.
Although it can take a few weeks for a response, sometimes there is an expedited option. Only after the articles are approved, does your business become a legal business entity.
How a Lawyer Can Help Submit
Articles of Organization
Forming a limited liability company is usually best done with someone who knows the process, and who can help guide you. This is why it is important to file your articles of organization with a lawyer. Hiring a lawyer means you will not make mistakes, and you will be able to operate your company more quickly.