There are many common elements in an articles of organization, which is a key element in establishing the business entity.
Legal Name. States require that the legal name of a limited liability company (LLC) use the initials "LLC," or some derivation thereof, as prescribed in the state's LLC statute. Similarly, the legal name of a corporation must use the abbreviation "Inc.," or a similar term, as prescribed by the state's corporation statute.
Assumed Name. An LLC or a corporation may operate under a different name, which is termed a "fictitious" or "assumed" name. States also have rules that govern the selection of assumed names. Usually, states prohibit the use of certain terms in an assumed name. For example, usually the terms "LLC" or "Inc.," which are required in the legal name, cannot be used in the assumed name. The use of terms that refer to a financial institution (such as "bank") usually are prohibited (unless, of course, the entity is a separately licensed financial institution). The laws in each state are unique in this regard. For this reason, the business owner should always check the statutes in the state in which the entity will be formed and the states in which it will be doing business.
Typically, the business owner must register the assumed name with the state or with the county recording office in which the entity will be doing business. States charge a separate fee for the registration of an assumed name.
Trade Name as Intellectual Property. The business owner who is sure that the legal and assumed names selected are unique may want to simply use the selected names in the articles of organization and the assumed name registration. However, the name of a business entity, which is termed a trade name, is protected as a type of intellectual property.
If there is the possibility that another entity in the area may be using an identical or similar name, the owner can, for a small fee, have the state's corporations office conduct a name search. A name also can be reserved for a limited period.
Principal Location. The principal place of business is, of course, the primary city and state in which the business will conduct its operations. However, after registering this location, nothing prevents the entity from conducting operations elsewhere.
Business Purpose. A detailed description of the purpose of the business usually is not required. In fact, the articles of organization forms in some states have pre-printed language that covers every situation. For example, the form might state that the business will be conducted "for any lawful purpose." When a more detailed description is used, the generic or catchall phrase "any other lawful purpose" should be used in addition to the detailed description.