What is the difference between a "member" and an "organizer" in WI LLC creation form?

Asked almost 3 years ago - Appleton, WI

Should all members be listed as "organizers" in the formation of an LLC?

Attorney answers (3)

  1. Nina Yablok

    Contributor Level 12

    6

    Lawyers agree

    1

    Answered . The "Organizer" is just the person filing the paperwork. Often an attorney is the "organizer" and then bows out after the members are brought in and issued their membership units. The members are the owners. And organizer could be a member, but could also be a total outsider, as I said, like a CPA or attorney.

    You don't tug on Superman's cape; you don't spit into the wind; you don't pull the mask off the old Lone Ranger;... more
  2. Phillip Monroe Smith

    Contributor Level 18

    5

    Lawyers agree

    Answered . An "organizer" is an individual who forms the LLC. A "member" can be a person or a legal entity (coporation, trust, another LLC, or partnership) that 1) has the right to participate in the management of the LLC, and/or 2) has the right to particiate in the economic activity (including profits and losses) of the LLC.

    THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can... more
  3. Steven Anderson Leahy

    Pro

    Contributor Level 17

    4

    Lawyers agree

    Answered . Under Wisconsin Law:

    Organizer: A person who signs and delivers the articles of organization for filing to the Department of Financial Institutions. A limited liability company may have more than one organizer.

    A limited liability company has members (similar to a partnership) who may directly manage the company or who may vest management in one or more managers. It combines features of a partnership and a corporation. "Ownership" of the LLC is reflected in the individual "member's interest," i.e., the member's share of the profit and losses of the company, rights to receive distribution of assets, and to participate in the management of the company.

    A limited liability company has members (similar to a partnership) who may directly manage the company or who may vest management in one or more managers. Managers need not be members of the limited liability company.

    I hope this helps.
    Respectfully,
    Steven A. Leahy
    www.chicagotaxteam.com

    Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-... more

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