Starting an LLC comes with a lot of moving parts, and it’s easy to get tripped up on the terminology. One of the most common points of confusion? The difference between an LLC organizer vs. member. These two roles sound similar, but they serve very different purposes in the formation and operation of your business. Knowing who does what can help you file the right paperwork, avoid costly delays, and keep your business compliant from day one.
In this guide, we’ll break down what an organizer in an LLC is, what a member of an LLC does, and how to figure out who’s who when you’re getting your company off the ground.
Related: What is an LLC?
Comparison table
| Aspect | LLC organizer | LLC member |
|---|---|---|
| Definition | Files the paperwork to form the LLC (administrative role) | Owner of the LLC |
| Role duration | Temporary (ends after LLC is formed) | Ongoing (as long as membership is held) |
| Responsibilities | Prepares, signs, and files Articles of Organization; ensures compliance | Shares profits/losses; votes; manages (if member-managed) |
| Legal standing | Not an owner by default | Legal owner of the LLC |
| Who can be | Anyone (owner, attorney, service, friend, family) | Individuals, entities, corporations (per state law) |
| Liability | Generally none after formation | Limited liability for company debts/actions |
| Decision-making power | None (unless also a member) | Has voting/management power |
| Ownership interest | No ownership interest unless also a member | Holds ownership stake in the LLC |
| Can one person be both? | Yes; can serve as both, but not required | Yes; can serve as both, but not required |
| Ongoing duties | None after formation | As defined in the operating agreement |
| Removal/replacement | Can be replaced before formation; no ongoing role after formation | Can be added/removed per operating agreement |
What is an LLC organizer?
The LLC organizer is the person or entity responsible for officially forming the limited liability company. This is a temporary, administrative role focused on getting your business legally up and running, not managing or owning the company long-term.
The main job of the organizer of an LLC is to prepare, sign, and file the Articles of Organization with the appropriate state agency. In many states, the organizer also handles naming the initial registered agent and may sign documents on behalf of the LLC during the formation process.
So, who is the organizer of an LLC? It can be the business owner, an attorney, or a third-party formation service. In some cases, even a friend or family member can act as the organizer. Just keep in mind that the organizer for an LLC is not automatically a member or owner; they’re simply helping get the business off the ground.
Organizer vs. registered agent explained
The organizer of an LLC is responsible for filing the paperwork to legally form the business. Once the Articles of Organization are submitted and approved, the organizer’s role is typically complete. A registered agent, on the other hand, is an ongoing role. They’re the official point of contact for receiving legal notices, tax documents, and other official correspondence on behalf of the LLC.
These roles can be filled by the same person or service, but they serve very different purposes. If you're unsure who to appoint, read our guide to learn more about registered agents and how to choose the right one for your business.
What is an LLC member?
A member of an LLC is an owner of the company. Members can be individuals, corporations, or even other LLCs, depending on your state’s laws. Unlike the organizer of an LLC, who simply helps form the business, members are actively involved in owning and sometimes managing the company.
Members have key rights and responsibilities, including:
- A share of the company’s profits
- Voting power in major decisions
- Limited liability protection, meaning their personal assets are protected from business debts and lawsuits
The exact duties and benefits of members vary based on the LLC’s operating agreement and structure, but in general, they play a central role in how the business operates.
Single-member vs. multi-member LLCs
An LLC can be formed with just one owner (a single-member LLC) or with multiple owners (a multi-member LLC). In a single-member setup, one person makes all the decisions and claims 100% of the profits. Multi-member LLCs divide ownership, responsibilities, and profits among two or more members.
The number of members can affect everything from tax classification to how the LLC is managed. You can explore the types of LLCs more in-depth here to figure out which setup works best for your business.
LLC organizer vs. member: key differences
The main differences between an LLC organizer and a member are timing and responsibility. The LLC organizer plays a short-term role in the formation of the business. They handle paperwork like the Articles of Organization and help structure the business, but they don’t automatically have ownership or decision-making power.
A member of an LLC, on the other hand, is an owner with long-term rights and responsibilities. Organizers don’t have those rights unless they’re also listed as members.
Related: LLC advantages
Can the LLC organizer also be a member?
The LLC organizer can also be a member of the LLC, but it’s not a requirement. In many cases—especially with small businesses or solo ventures—the organizer and member are the same person. That means you’re filing the formation paperwork and also taking on ownership of the company.
However, when an attorney, accountant, or online formation service is used to help organize the LLC, the organizer is often someone outside the company. In that case, they handle the paperwork but don’t have any ownership or long-term role unless explicitly added as a member. This setup is common and has no negative impact on how the LLC functions.
Common mistakes when choosing an LLC organizer
Choosing the right LLC organizer is crucial, and it’s easy to make missteps if you’re not familiar with the process. Watch out for these common mistakes:
- Assuming the organizer must be a member: Anyone can serve as the organizer of an LLC, including an attorney, friend, or formation service. The organizer doesn’t need to have ownership in the business.
- Confusing the organizer with the registered agent: These roles are often mixed up, but they’re very different. One person can fill both roles, but they serve separate purposes.
- Leaving the organizer undocumented: Some states require you to list the organizer on official filings or internal documents. Failing to document this properly can lead to confusion or delays in processing your LLC.
- Not understanding state-specific rules: Every state has its own rules about who can act as an organizer and how paperwork should be filed. Skipping the fine print can lead to rejected applications or compliance issues down the line.
To avoid these issues when choosing your LLC’s organizer:
- Double-check your state’s LLC formation requirements before assigning an organizer
- Use a trusted resource or service if you’re unsure who should handle the paperwork
- Keep copies of all formation documents and record who acted as the organizer
Practical examples of LLC organizers and members
Still unsure how the organizer vs. member roles play out in real life? Below are a few everyday scenarios that may help clear up the confusion.
Solo business owner using an online formation service
- Organizer: The formation service files the Articles of Organization
- Member: The business owner is the sole member and manager of the LLC
- Note: The organizer is not a member and has no ongoing role in the business
Two friends starting a consulting firm together
- Organizer: One of the friends files the paperwork as the organizer
- Members: Both friends are listed as members and co-owners in the operating agreement
- Note: The organizer is also a member in this case
Investor group forming a multi-member LLC
- Organizer: A paralegal or legal assistant files the documents on behalf of the group
- Members: Each investor is named as a member in the operating agreement
- Note: The organizer is not a member and has no ownership interest
Entrepreneur hiring an attorney to set up an LLC
- Organizer: The attorney prepares and files the formation documents
- Member: The entrepreneur is the sole member and owner of the LLC
- Note: The attorney is just the organizer, not an owner
How to select an LLC organizer
Choosing the right LLC organizer can help you avoid delays and formation headaches. While this role is temporary, it still requires attention to detail and a clear understanding of the filing process. Your organizer should have:
- Trustworthiness: You’ll want someone reliable to handle your business’s legal paperwork
- Experience: Familiarity with LLC formation requirements can help avoid common mistakes
- Legal knowledge: If your formation is complex, consider using an attorney or a trusted formation service
Once you’ve chosen your LLC organizer, you must document and designate them by including their name and signature on the Articles of Organization, if required by your state. You should also keep a copy of the formation paperwork in your business records. If you're using a service or third party, clarify in writing that their role ends after the LLC is formed. This will help prevent any confusion about ownership down the line.
After your LLC is officially formed, you have a few more steps to take:
- Transfer any official documents to the LLC’s members or managers
- Make sure your operating agreement reflects the correct ownership and management structure
- Remove the organizer from future filings unless they’re also a member or manager
State-specific LLC formation requirements
Every state has unique LLC formation rules and requirements. If you’re thinking about starting an LLC in your state, check out our state-specific guides!
- How to start an LLC in Arizona
- How to Start an LLC in California
- How to start an LLC in Florida
- How to start an LLC in Texas
Need help getting started? This guide on how to start an LLC walks you through the full process.
Final thoughts on LLC organizer and member
Understanding the difference between an LLC organizer and a member is a small but important part of setting your business up for success. Each role serves a unique purpose in the early stages of forming your company, and getting it right from the start helps you stay organized, legally compliant, and focused on growth. With the right people in the right roles, you can build a solid foundation for your LLC that supports your goals now and as your business grows.
Ready to simplify the setup process? GoDaddy Airo can help you set up an LLC quickly and confidently, with easy-to-use tools and expert support to guide you every step of the way.
Frequently Asked Questions
What is the difference between an organizer and a member?
The organizer of an LLC is the person or service that files the formation paperwork with the state. A member is an owner of the LLC with rights to profits and decision-making power. The organizer plays a short-term administrative role, while members have an ongoing stake in the business.
Is the organizer liable after formation?
No, the LLC organizer is not personally liable for the company’s debts or actions after formation, unless they’re also a member or manager and take on responsibilities within the business. Their role ends once the LLC is legally formed.
Is an organizer the same as an owner?
The organizer of an LLC is not automatically an owner. Ownership depends on who is listed as a member in the formation documents or operating agreement. The organizer may also be a member, but the roles are legally distinct.
Do you need to list the organizer in the operating agreement?
It’s not required in most states, but it’s a good idea to document who served as the organizer of the LLC in your internal records. The operating agreement typically focuses on members and managers, not the organizer’s short-term role.
