Certificate of Formation
Definition
A Certificate of Formation is the exact same document as the "Articles of Organization." It is simply the specific terminology used by a handful of states (most notably Texas, Delaware, and New Jersey) for the form you must file with the state to officially create your LLC.
Why it matters
Understanding this term prevents confusion during the LLC setup process. If you are reading a guide that tells you to file "Articles of Organization," but you are forming your LLC in Texas, you will only find the "Certificate of Formation" form on the Secretary of State's website. Filing this document, along with paying the state fee, is what legally brings your LLC into existence.
Example
Chloe decides to form an LLC in Delaware to hold her real estate investments. She goes to the Delaware Division of Corporations website and pays the $90 fee to file her Certificate of Formation. Once the state approves it, her Delaware LLC is officially born.