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Articles of Organization: Glossary Definition

Definition of Articles of Organization :

Articles of Organization (also sometimes called the Certificate of Formation) is the charter document of an LLC.  The LLC is formed with the Articles of Organization are filed with the Secretary of State of the state of formation to form the business.  Articles of Organization serve a similar purpose as Articles of Incorporation serve for corporations, however, many of the rights and privileges of the LLC are set forth in the company’s operating agreement, and not in the Articles of Organization.

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Today’s Question — Friday, July 30

Must I pay all of my employees?

It is not unusual for start-up companies to have limited cash resources. It is also not unusual for entrepreneurs to entice employees to the company by offering stock compensation, instead of cash, until such time as the business can afford to pay regular salaries. However, it is advisable to consult with an employment lawyer in your state of operations to determine if this is permissible under the state’s wage statutes. In most cases, the lawyer will likely advise that each employee be paid an amount equal to applicable minimum wage amounts.

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