Sample business purpose statement for LLC [Video]



Last updated : Aug 7, 2022
Written by : Reynaldo Hodo
Current current readers : 1113
Write a comment

Sample business purpose statement for LLC

How do you write a business purpose for an LLC?

  1. The name of the founder of the company.
  2. Your business name.
  3. The date of the company's formation is specific.
  4. The company's market status.
  5. The legal organization of the company.
  6. Your company's products and services you will be providing to consumers.

What is a business purpose statement example?

For example, “Our mission is to serve low income families with free online educational services.” A purpose statement answers the “why” in “why are you in business?” For example, “To encourage the passion to learn through ethical and honest means.”

What should I put for business purpose?

Your business purpose is the reason you have formed your company boiled down to a single sentence (or two). It can be industry-specific or general enough to include ancillary and future business activities. To understand business purpose, it is important to distinguish it from your company's vision or mission.

Does business purpose matter on LLC?

Some, but not all, states require a business purpose statement when filing for an LLC. This statement is often included with the Articles of Organization. This statement informs the state of the reason why you are forming an LLC.

What should be included in LLC purpose clause?

LLC's Articles of Organization Purpose Statement Here's an example of what a general LLC purpose statement might look like: “The purpose of this limited liability company is to engage in any lawful activity for which limited liability companies may be organized in this state.”

What is an LLC purpose clause?

An LLC purpose statement is a declaration of the reason(s) an LLC was formed. In most states, it is usually sufficient to keep it nonspecific by stating that the LLC was formed to undertake every operation an LLC can legally embark on in a given state.

How do you answer a purpose statement for an LLC example?

“The purpose of Business Name LLC, is to operate and conduct all lawful business activities legally permitted in the state of A.” “The purpose for which XYZ, LLC, is formed is for the transaction of any and all lawful purposes for which a limited liability company may be organized under the laws of the state of A.”

What are examples of purpose statements?

Purpose statement examples Example 1: "Our purpose is to inspire every family in the world to enjoy Sunday dinner together." Example 2: "Our purpose is to support the health and well-being of our planet and everyone who lives here."

What does a good purpose statement look like?

To be effective, a statement of purpose should be: Specific and precise - not general, broad or obscure. Concise - one or two sentences. Clear - not vague, ambiguous or confusing.

What are the two main purposes of all businesses?

"Because the purpose of business is to create a customer, the business enterprise has two--and only two--basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business."

What is the main purpose of your business?

The purpose of a business is to offer value (through products and/or services) to customers, who pay for the value with cash or equivalents. Minimally, the money received should fund the costs of operating the business as well as provide for the life needs of the proprietor.

What is the purpose of a business entity?

Business entities, at the core, are legal structures that allow businesses to conduct business. Their purpose is fairly simple. Incorporating as a business entity ensures the separation and protection of personal and professional assets.

Who has the most power in an LLC?

In a member-managed LLC, the owners have collective control over company decisions. A manager-managed LLC places management authority in the hands of a professional manager or one or more elected members.

Can you change your business purpose?

You can always change the purpose of your LLC later (by filing an amendment), but it's really not required. You just need to list an LLC business purpose during the initial filing for your LLC.

Who is the organizer of an LLC?

An LLC organizer is involved in the formation of the LLC. The organizer signs and files the Articles of Organization. The organizer of an LLC may be separate from the members or managers of the company.

What does perpetual LLC mean?

Unless the articles of organization specify differently, a limited liability company has perpetual existence. This means that the owners can change without triggering the dissolution of the company.

What is the statement of business?

A company statement, or a mission statement, clarifies the reason for the existence and the goal of the business. A company statement should clarify who are the customers you serve, what products and services you offer, and your business or service location.

What are the benefits of having an LLC?

  • Limited Personal Liability.
  • Less Paperwork.
  • Tax Advantages of an LLC.
  • Ownership Flexibility.
  • Management Flexibility.
  • Flexible Profit Distributions.

What is a purpose clause for LLC in Ohio?

The purpose or purposes for which individuals may associate themselves, including for any profit or nonprofit purpose. If no purpose is provided, the purpose of the company is to engage in any lawful act or activity for which a limited liability company may be formed.

What is a statement of purpose in a business plan?

A statement of purpose is an integral component of your small business's overall strategic operation plan. This document contains your company's core philosophy and values, from which you measure the worth of all business decisions and strategies.


more content related articles
Check these related keywords for more interesting articles :
Do i need a registered agent llc
Who should be an LLC organizer vs registered
Change from llc to s corp california
Are llc taxed once or twice i have high blood
How to list a business with llc
LLC lookup florida sunbiz
What is a 501 LLC form california
When do you pay LLC fees
Different kinds of llcs
How much does it cost to establish an llc in california
Can an llc own s corp shares
Will LLC save taxes with trusts
How do i change my address for my LLC
How to start an LLC company illinois
How are taxes paid in an LLC








Did you find this article relevant to what you were looking for?


Write a comment




Sample business purpose statement for LLC


Comment by Ignacio Crump

hi i'm dominique broadway financial planner and personal finance coach and i will be discussing does an llc need a business purpose an llc provides full protection for all partners from personal liability for the debts and or actions of the partnership the owners who are also called members must file an articles of organization in their home state which should define the company's business purpose the articles of organization will state the name address members and purpose of the partnership this can be for a limited amount of time and scope or without an end date some states allow general statements for the corporate purpose statement while others expect specific language however most states will require the general purpose clause in the articles of organization this clause would include language such as the purpose of this insert your company name llc is to operate as a corporation legally and lawfully in my state this shows that the llc is willing to comply with all business guidelines tax laws and any other operational regulations as managed by the company's home state i'm dominique broadway and i've just explained does an llc need a business purpose you


Thanks for your comment Ignacio Crump, have a nice day.
- Reynaldo Hodo, Staff Member


Comment by Wilburn

so how do you create an organizational purpose statement hi I'm Lisa McLeod and I created the noble purpose and business concept organizations have used this to create competitive differentiation to drive revenue and improve the emotional engagement of their employees so now I want to show you how you create one so what constitutes a great purpose statement well let me tell you what a great purpose statement is not I see these all the time and I see things like our aim is to be the number one provider of end-to-end solutions in the five markets we serve and to provide this type of customer with extra no that's not a purpose statement that's a boring description of your organization here's an example of what I call a noble sales purpose and those three words are really important noble because it is in the service of others sales because it directly relates to what you sell as an organization and then purpose because it's a bigger loftier aim so a good in SP as we refer to it noble sales purpose contains three elements it speaks to how do you make a difference to your customers how do you do it differently than your competition and on your best day what do you love about your job here's an example one of our customers is Flight Center they're the world's largest travel organization and they're noble sales purpose is really simple we care about delivering amazing travel experiences that's it it's really simple that's what they care about they want it to be amazing and they want all their employees to care another one of our clients make some component parts that improve the brakes on railroads and other heavy vehicles they're NSP is we make transportation safer faster and more reliable another one of our clients is all about patient safety they say we improve patient safety it's really simple so if you want to start your organization down the path towards greater success you need an NSP it's really simple how do you make a difference how do you do it differently than your competition and on your best day what do you love about your job if you conduct that exercise with your team you ought to be able to come up with your own NSP and it's not be the number one provider of Indian services in 500 markets that's boring an NSP a noble sales purpose is about how do you affect your customers organizations who have a laser-like focus on that have a North Star enables them to make better decisions they create competitive differentiation and they give their employees something to rally around


Thanks Wilburn your participation is very much appreciated
- Reynaldo Hodo


About the author