4 min read

Exploring the Purpose of Your LLC: What You Need To Know

LegalGPS : Aug. 2, 2024

5:55

At its core, the purpose of an LLC is a definition of the business activities your company will undertake. It's a short statement included in your Articles of Organization--the document that legally forms your LLC--and also your operating agreement. But it's more than legal jargon - it's the backbone of your business, guiding your daily operations, and outlining what you offer to your customers.

Legal GPS Subscription

Protect your business with our complete legal subscription service, designed by top startup attorneys.

✅ Complete Legal Toolkit
✅ 100+ Editable Contracts
✅ Affordable Legal Guidance
✅ Custom Legal Status Report

Learn more

First, Understand this Point

Most people -- the vast majority of LLCs -- just use a general purpose. Most states have a box you can check that offers that. If they don't, you can just write in something like, "The purpose for which this Limited Liability Company shall be organized is for any and all lawful purposes for which a Limited Liability Company may be organized as per the laws of the state of [State you're filing in].

But - if you're wanting to write a more specific purpose, please continue reading.

Why Is Defining Your LLC's Purpose Important?

Defining your LLC’s purpose has several benefits. Legally, it sets boundaries to the scope of your business activities. It can streamline your business plan and operations, helping you maintain focus on your core services or products. Plus, a well-defined purpose communicates clearly to stakeholders, including potential investors, about what your company is all about.

Examples of LLC Purposes

Need some inspiration? Here are different LLC purpose examples to get your creative juices flowing:

"The purpose of the company is to offer digital marketing services, including but not limited to SEO, content creation, and social media management."
"The purpose of the LLC is to sell eco-friendly, handmade skincare products online and in physical stores."
"This LLC is formed to provide professional photography services for events and commercial purposes."

Legal GPS Subscription

Protect your business with our complete legal subscription service, designed by top startup attorneys.

✅ Complete Legal Toolkit
✅ 100+ Editable Contracts
✅ Affordable Legal Guidance
✅ Custom Legal Status Report

Learn more

How to Determine the Purpose of Your LLC

Here are some steps to defining your LLC’s purpose:

Identify Your Services or Products: Start by defining what your LLC will sell. Will it offer services, products, or both?
Define Your Market: Who will your LLC serve? Identify your target audience and craft your purpose around their needs.
Identify Your Unique Selling Proposition (USP): What makes your LLC unique? Maybe you offer all-natural beauty products or marketing services using advanced AI techniques.
Draft Your LLC Purpose: Combine the previous elements to draft a concise LLC purpose.

Can an LLC have multiple purposes?

Yes indeed! It's not uncommon for LLCs to have multiple purposes. If you envision your company engaging in various activities, you can definitely reflect these in your Articles of Organization. Just ensure that all these activities are in compliance with the legal requirements of your state.

What if the purpose of my LLC changes over time?

That's normal, business evolves. If there's a significant shift in your LLC's purpose, you will need to amend your operating agreement and your Articles of Organization accordingly, complying with the procedures defined by your state. This also depends on if your LLC is a single-member or multi-member LLC. If you're a single-member LLC, your operating agreement can be easily amended - you don't need to worry about votes! If multi-member, you'll need to reference your operating agreement to find out what voting measures are needed.

Is the purpose of an LLC the same as a business mission statement?

They might seem like twins, but they're not. While your LLC's purpose strictly states the activities your business will indulge in, your mission statement is more of a philosophical roadmap, expressing your company's goals and values.

How specific does the LLC purpose need to be?

It's not one-size-fits-all. The necessary level of specificity in your LLC's purpose largely depends upon the regulations of your state. Some might be okay with a broad purpose, while others could demand a detailed description. One thing is vital - your LLC's purpose needs to be a clear reflection of your business activities.

LLC Purpose Examples

Here are some examples to help spawn some creativity:

Tech Consultancy LLC: "Our purpose is to provide technology consulting services, including IT infrastructure management, software development, and system integrations."

Health and Wellness Studio LLC: "The purpose of this LLC is to operate a health and wellness facility, offering services such as yoga classes, meditation workshops, and holistic wellness coaching."

Online Retail Store LLC: "The purpose of our company is to run an eCommerce retail store, selling a wide variety of products, including clothing, accessories, and home goods."

Event Planning Services LLC: "The LLC's purpose is to provide event planning and management services for weddings, corporate events, and private functions."

Graphic Design Agency LLC: "Our purpose is to offer graphic design services for clients, specializing in branding, marketing materials, and web design."

Catering Services LLC: "This LLC aims to provide catering services for various events, such as weddings, corporate gatherings, and private parties, offering diverse menus and tailored experiences."

Mobile App Development LLC: "The purpose of this LLC is to develop and launch mobile applications across platforms, providing app design, programming, and ongoing updates."

Coffee Shop LLC: "Our LLC is dedicated to operating a specialty coffee shop, serving high-quality coffee and tea beverages, alongside a curated selection of pastries and light fare."

Real Estate Investment LLC: "The purpose of our LLC is to invest in residential and commercial real estate properties, including buying, managing, and selling property assets."

Travel Agency LLC: "The purpose of the company is to offer travel planning services and booking assistance, specializing in custom vacation packages and guided tours."

These examples should serve as a foundation to help construct your own LLC purpose statement. Just remember, convey what your business does in a clear and concise manner, and you'll be good to go!

Next Steps

Once you have defined your LLC's purpose, you'll include it in your Articles of Organization when you register your business.

Do I need a business lawyer?

The biggest question now is, "Do you need a lawyer for your business?” Are there any reasons to hire a business lawyer? For most businesses and in most cases, you don't need a lawyer to start your business. Instead, many business owners rely on Legal GPS Pro to help with legal issues.

Legal GPS Pro is your All-In-One Legal Toolkit for Businesses. Developed by top startup attorneys, Pro gives you access to 100+ expertly crafted templates including operating agreements, NDAs, and service agreements, and an interactive platform. All designed to protect your company and set it up for lasting success.