Mark Kohler explains why filing articles of organization isn't enough. An LLC needs an operating agreement, meeting minutes, resolutions, a corporate book, and membership certificates from day one. Without these documents, you have no liability protection.
One of the biggest myths out there is that an LLC is just one sheet of paper. The actual formation of the LLC includes a lot of other documents that go with the state filing. Yes, you need to file with the state, sometimes pay upwards of a couple hundred bucks, and boom, you may think you're protected forever. That's not how it works. A real LLC has multiple parts when it's formed properly. Not only do you have the articles, you have an operating agreement, initial minutes with a host of resolutions that have to be adopted, a corporate book, membership certificates, and then signed properly by everyone involved. We're not even to the ongoing documentation and maintenance that comes on day 2. So if you don't have those pieces when you initially form the LLC, right out of the gate, you don't have the protection you think you do.
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