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Simple English definitions for legal terms
certificate of formation
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A quick definition of certificate of formation:
A certificate of formation is a legal document that you need to create a limited liability company (LLC). It proves that the company is established and has all the necessary information about its formation. Each state has its own requirements for forming an LLC, and some states require it to be filed with the Secretary of State. It's also known as the articles of organization, and most states require it. Some states call it an LLC application instead of a certificate of formation.
A more thorough explanation:
A certificate of formation is a legal document that is required to create a limited liability company (LLC). It is used to prove that the company has been established and contains all the necessary information about the formation of the company.
Each state has its own requirements for forming an LLC, and in some states, the certificate of formation is filed with the Secretary of State.
The certificate of formation is also known as the articles of organization, and most states require it. For example, Connecticut, Idaho, Iowa, Massachusetts, Pennsylvania, and Utah require an LLC application as a certificate of organization. Alabama, Delaware, Maine, Mississippi, New Hampshire, New Jersey, Texas, and Washington require an LLC application as a certificate of formation.
An example of a certificate of formation would be a document filed with the Secretary of State in Texas to create a new LLC. This document would include the name of the LLC, the purpose of the LLC, the names and addresses of the LLC's members, and other important information about the company's formation.
Another example would be a certificate of formation filed with the Secretary of State in Delaware to create a new LLC. This document would include the name of the LLC, the name and address of the registered agent, and other important information about the company's formation.
These examples illustrate how a certificate of formation is used to legally create an LLC and provide important information about the company's formation.