The individual or entity responsible for establishing a Limited Liability Company is a crucial figure in its formation. This party undertakes the initial steps required to legally create the LLC, including filing the necessary documents with the relevant state agency. For example, this involves preparing and submitting the articles of organization, which outline fundamental aspects of the LLC, such as its name, registered agent, and principal place of business.
The function of the establishing party is essential because it sets the legal foundation for the business. Without properly filing the required documents, the LLC does not exist legally, and its members cannot benefit from the liability protection and other advantages associated with this business structure. Historically, this role was often filled by attorneys or professional formation services, but now it can be undertaken by one of the LLC’s future members or managers, provided they understand the legal requirements.