How to Draft Articles of an Organization to Reflect Its Activity

When starting a new company, it is necessary to draft articles of an organization to ensure that all the business’ activity is correctly reflected from a legal perspective by providing basic information regarding its planned operations.

Drafting Articles of an Organization

Usually, the articles of an organization form the legal basis for a business and are filed with state authorities. Other names for articles include a certificate of formation or a certificate of organization. Exact filing drafting and filing requirements vary from state to state so it is best to seek legal counsel when in doubt. The articles will reflect the name of the organization in question, its statement of purpose, its duration, and the location of its business activity.

Specifics of Articles of an Organization

The name of the business should be unique and many states forbid private companies from including designations such as bank, trust, or insurance in the title of a business unrelated to that activity. Though the business’ activity may change over time, it does help to have a statement of purpose to ensure that the company is not subject to certain state regulations. A main location usually serves as a reference for the state to contact the relevant registered founders regarding its activity. Also, a registered agent can serve as a company’s legal representative when it comes to tax and documentation issues.

The excitement of starting a new business should not impede the proper filing of documentation. This not only safeguards the business owners, it also serves to identify their activity within their state’s industry. By correctly drafting articles of an organization, a company is setting forth its purpose as a business and its expectations for future activity and growth.