The articles of organization is a legal document containing important information about the business. The Secretary of State office must approve the document for the LLC to be recognized as a legal entity.
Filing articles of organization officially registers the company as an LLC with the state and establishes it as a separate legal entity from its owners (which are called members). That legal separation between owners personally and their business is one of the main drivers for entrepreneurs to form an LLC. In most instances, members are not held liable personally for the company’s legal and financial problems. That gives business owners some peace of mind that their personal assets (e.g., home, vehicles, retirement funds, etc.) will not be at risk if the LLC is sued or cannot pay its debts.
After receiving state approval of its articles of organization, an LLC is considered “domiciled” in that state (i.e., the state becomes the company’s “home” state). The business goes on record as a domestic LLC in the state, obligated to operate according to that state’s laws and codes.