At Denim in order to underwrite your business, we require the same documents that were needed to open your business bank account. These are: Articles of Organization, an Operating Agreement, and a valid, legible ID.
ARTICLES OF ORGANIZATION
Articles of Organization are filed with the secretary of state when an LLC is established. Typically a blank copy looks like this:
WHY ARTICLES OF ORGANIZATION
When we ask for articles of organization, usually we are looking for paperwork establishing the company in a specific state (maybe we are searching with the secretary of state, but are unable to find the entity listed) or to verify that the party signing paperwork has ownership authority.
WHERE CAN I FIND MY ARTICLES OF ORGANIZATION
When an LLC is filed, articles of organization are required by the secretary of state to begin operation. These would have been filed at the time the business was started and the final, executed version mailed back to you upon filing. If you are unsure where that document ended up, reach out to the secretary of state office in your state and ask for a new copy.
OPERATING AGREEMENT/OWNERSHIP PERCENTAGE VERIFICATION
Sometimes we are unable to verify ownership from the articles of organization, so additional paperwork is required. This can be an operating agreement, which is a standard document created when an LLC is formed to distinguish the difference between company and personal assets. An operating agreement generally lists owners of the company and the percentage of the company owned by each party, the address of the business, and a variety of other information detailing how the company will be operated.
Here's an example of what an operating agreement may look like:
WHY AN OPERATING AGREEMENT
When we ask for an operating agreement or any other documentation verifying ownership percentages, we're verifying that the party filling out the paperwork and signing our contract is the majority owner of the company. Sometimes the articles of organization (if requested) don't state the owner/manager of the company, but only state the registered agent.
We want to make sure the person signing contracts has the authority to do so to protect you and your assets!
GLOSSARY OF LLC TERMS