What type of entity is formed by filing articles of organization?

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Filing articles of organization specifically relates to the establishment of a Limited Liability Company (LLC). This legal document is required to formally register an LLC with the state, distinguishing it from other types of business entities. An LLC combines the flexibility and tax benefits of a partnership with the limited liability protection afforded to corporations, meaning the owners (often referred to as members) are generally not personally liable for the debts and obligations of the business.

In contrast, a partnership is formed through an agreement between individuals and does not require filing articles of organization. A corporation requires articles of incorporation, which is a distinct legal process from that of forming an LLC. A sole proprietorship is the simplest form of business entity, often requiring no formal registration or documentation with the state to establish, other than necessary business licenses or permits. Therefore, the correct response is that articles of organization specifically designate the formation of an LLC.

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