When you register a new LLC with your state, you may be asked to provide an official purpose of business. Here’s what that means:
What is an LLC business purpose?
In a legal sense, your business purpose is simply the reason you’re forming a business. If your state requires a business purpose, it will ask for it in your LLC Articles of Organization. While you might want to specify a mission or specific goals for your company internally, that’s not necessary when filing formation documents with the state.
Do all states require an LLC business purpose?
No. In fact, statement of purpose requirements vary from state to state. For example, Maryland’s Articles of Organization asks for a general purpose, and Nevada’s Articles of Organization doesn’t ask for a business purpose at all. Way out of left field, California’s Articles of Organization simply includes a “purpose statement” for you, which you’re prohibited from changing.
The bottom line is, each state is different. Check your state’s articles of organization form to see what type of “purpose” you may need to provide for your business.
How should I write a statement of purpose?
You business purpose can reference the industry you work in, such as: “to sell real estate in the state of [x].” In most cases, unless instructed otherwise, you can write something generic for your business purpose. It can even be as simple as: “to engage in lawful activity within the state of [x].”