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What is a Certificate of Organization? Why Do You Need It?

Starting a business? Here is everything you need to know before moving forward! A certificate of organization is one of the most crucial documents a business owner will need. We all know starting a new business journey includes a lot of paperwork and a deep understanding of the procedures involved in the process of setting up. A certificate of organization is something you must have because it will provide legal authorization to your company. In this article, we will learn more about the certificate of organization and how you can obtain one for your business. Now let’s get started. 

What is a Certificate of Organization?

Certificate of Organization

We all know how hectic being a business owner or CEO of a new company is, and how stressful all the paperwork required to establish a new company in any state can be. Creating a new business requires a lot of document submissions, signatures from different authorities, approvals, and more! A Certificate of Organization is a blessing for you because it would minimize your worries and reduce your company’s liability. How? Let’s find out! 

What is a Certificate of Organization?

A certificate of organization is the most crucial document you need when establishing a Limited Liability Company (LLC) in any state. This document certifies that your company is legally authorized and legitimate. On the other hand, every state has different laws and rules for a certificate of organization. Anyone who is a member of an LLC can easily apply for this certificate. You can also hire a company that will provide a registered agent to do the work for you. Moreover, you might be wondering what a Limited Liability Company is and what an LLC Certificate of Organization is. Let’s find out! 

What is an LLC Certificate of Organization?

A certificate of organization is a US-specific form used for private companies getting established in the United States. An LLC is considered a business structure that combines elements of a sole proprietorship, partnership, and corporation, and offers a lot of flexibility for owners. The certificate of organization is always filed with the secretary of the state to establish a limited liability company in the state, which is why it is known as an LLC Certificate of Organization. The main advantage of having an LLC certificate of organization is that it helps reduce unnecessary document formalities and protects you from excessive taxation. What is the process for getting a certificate of organization? Well, it all depends on in which state you are applying for it. Also, if you are filing the document online, the time will vary depending on the state sites. The estimated time is four to six weeks to get the documents approved. 

Another fact you should know is that the value of a certificate of organization varies from state to state. For example, in one state, the certificate of organization would be just a legal certificate demonstrating that your company was legally and fairly formed. However, in other states, a certificate of organization would be necessary to form a company. 

How to file a Certificate of Organization

Also, if you are wondering How to file a Certificate of Organization, do not worry! When Filing a Certificate of Organization, you will need to submit an application to the secretary of the state. To apply, you will have to go to the state government website and select the e-filing option, then create an account. Read all the guidelines carefully and fill in the required information asked. After it gets approved, you will receive your document within 4-5 weeks. 

What are some other names for the Certificate of Organization? 

A certificate of organization is the legal document that gives you access to establish your company in a particular state in the US. However, the name of this legal document varies and may seem different based on state. Every state of the US has its own regulations for providing a certificate of organization to a company. Here are some other names that are used for the certificate of organization

  • Certificate of Existence
  • Certificate of Authority
  • Certificate of Status
  • Certificate of Formation

Now that we know what a certificate of organization is, let’s learn about the details that are included in the certificate. Keep in mind, if you are experiencing any hassle while establishing your business and finding the paperwork to be very challenging, allow IncParadise to oversee the work for you. 

What details are included in a Certificate of Organization? 

When forming your company in any state, some set details must be precisely followed to obtain the certificate of organization. If The application is missing any information, it may get rejected. Therefore, you must stay focused on the major and minor points while applying. Here is the list of details that must not be overlooked when applying for a certificate of organization. 

  • The name of the LLC The name of your company should have “LLC” as an abbreviation following the name of the company. Most states have put this as a requirement that the company’s name should have a designation as LLC or LC. The name of an LLC can also include “Limited Liability Company” or “Limited Company,” which we usually see as Ltd Co. 
  • The effective date of the formation of the LLC – The date of formation of the LLC. must be written on the document. 
  • Registered agent’s name and address – There must be a designated agent who will receive and handle all the lawful correspondences for the company. The address and name of the agent must be registered. 
  • The company’s principal office – The address of the company’s registered office.
  • General Character – The business purpose, which is also sometimes known by Massachusetts as the “General Character” of the LLC.
  • Duration of the business – There must be a perpetual or a specific date mentioning until when the business is going to operate. 
  • The name and address of one member of the LLC – The name of any one member of the LLC should be listed and is especially crucial. 
  • Details of each organizer of the LLC – Each organizer of the LLC should have his or her name and address listed for the certificate. 

Some states demand a copy of the authorized representative’s name, registration certificate, and signature. So, if you want the overall process to be hassle-free, consider these points when applying for the Certificate of Organization. Let’s move on to our next topic where we will learn how you can obtain a certificate of organization for your business. 

How to obtain a Certificate of Organization for your business

After reading all the mandatory requirements, keep in mind that there are a few other details that you must learn if you are planning to create an LLC business in the US. Having your own business may seem fascinating from the outside, but it is one of the most challenging duties to take on. When you become a CEO, you have a huge responsibility to the company and all of the business operations must be done very precisely and legally. Hence, knowing everything is not an option but a requirement. 

We learned previously that to get the certificate of organization, you will have to log in to the state government’s official website. However, the process doesn’t stop there, there are a few steps that you will need to follow after filing. So, once your certificate of organization has gained approval, you will have to follow the steps given below-

  • After your certificate of organization has gained approval, you should acquire an LLC operating agreement as soon as possible. This agreement should be established whether it is required or not because it outlines the ownership of the business and the roles of each member of the company. 
  • Getting an Employer Identification Number is a critical step in this process. To open a business bank account, you need an employer identification number, also known as EIN. To get your EIN, you must apply on the IRS website.  
  • Finally, you will need a separate business bank account responsible for keeping up with all your business-related finances. A business account is very important if you don’t want your personal finances and business finances to get mixed up. 

These are pivotal details that you must keep in mind if you are planning to have a business in the US and want to avoid documentary and tax-related hassles. 

Need help with filing a Certificate of Organization? 

Are you having trouble managing all the business-related work while forming a company in the US? Well, no more worries! IncParadise is a leading business incorporation and registered agent in the USA. We can help you to file your Certificate of Organization/form your LLC in any desired state. We can also offer many additional services like annual report filing, mail forwarding, EIN assistance, Foreign qualification, and many other services. Contact us, and let us handle the work for you!

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