Why All Arizona LLCs Need an Operating Agreement that Eliminates the Harmful Provisions of Arizona’s New LLC Law
by Arizona LLC attorneys Richard Keyt and his son former CPA Richard C. Keyt who have formed 7,300+ Arizona LLCs and have 141 five star Google reviews and a total of 217 five star online reviews.
On September 1, 2019, Arizona replaced the Arizona limited liability company law adopted in 1992 with an entirely new law. As of September 1, 2020, Arizona’s new LLC law applies to ALL Arizona LLCs regardless of when the LLC was formed.
If you are a member of an Arizona LLC please note the following:
- 1st Warning: Arizona’s new LLC law harms members of LLCs that do not have an Operating Agreement that contains language that eliminates the damaging provisions of the new LLC law.
- 2nd Warning: If you are a member of an Arizona LLC you must read the 13 examples below because they explain 13 of the many ways Arizona’s new LLC law can harm you unless your LLC has an Operating Agreement that eliminates the new law’s bad provisions.
- 3rd Warning: If any of the 13 examples in the table below applies to you and your Arizona LLC the only way to eliminate the harm is for all the members to sign an Operating Agreement that contains language that eliminates the harmful provisions of the new law.
- 4th Warning: All 13 of the examples below apply to multi-member LLCs, but only examples 4, 5, 10 and 11 apply to single member LLCs and married couple owned LLCs.
- 5th Warning: The harmful provisions of the new law are not eliminated merely because the members sign an Operating Agreement. The Operating Agreement must be written by a person who understands the problems caused by Arizona’s new LLC law and has written an Operating Agreement that eliminates all of the harmful provisions. Few people including Arizona attorneys are familiar with Arizona’s new LLC law so I doubt you can find somebody other than me who has the knowledge needed to write an Operating Agreement that eliminates the harmful provisions of Arizona’s new LLC law.
If you have an Arizona LLC you should hire me, Richard Keyt, to draft your Operating Agreement because: (a) I was on the committee that wrote the new law for three years but quit because I was disgusted by the committee’s desire to repeal Arizona’s LLC that did not need to be replaced, (b) I’ve drafted 7,300+ Arizona LLC Operating Agreements, (c) I’ve written extensively about the new law, (d) nobody has an Operating Agreement as sophisticated and customizable as mine, and (e) I have 141 five star Google reviews and a total of 217 five star online reviews because people love my LLC services and low LLC prices.
To buy a new Arizona LLC law compliant Operating Agreement that eliminates all of the problems described below complete my Operating Agreement questionnaire.
Note for Those Thinking of Forming a New Arizona LLC: We form new Arizona LLCs for $397, $597 and $997 (the confidential LLC) and they all include a new LLC law compliant Operating Agreement.
Hypothetical LLC Facts
The table below illustrates how Arizona’s new LLC law affects three hypothetical LLC members. The members are Ned Flanders, a single man, and Homer and Marge Simpson, a married couple. The Simpsons contributed $10,000 to the company. Ned contributed $90,000. Ned is to be paid for services he provides on behalf of the company.
Members’ Mistaken Assumptions
Ned assumes he will be allocated 90% of the profits because he contributed 90% of the capital. Ned also assumes he will have control of the company because he will have 90 votes out of 100 total votes. Homer thinks he owns his interest in the LLC as his separate property because Marge is not named as a member in the LLC’s Articles of Organization. These problems and others are explained in the table below.
Warning: There are many more problems with the new LLC law. The table below shows some of the problems caused by the new law. If only one of the examples described below applies to your Arizona LLC you need my Operating Agreement to fix the problem.
How to Buy an Operating Agreement
Option 1: Quickest, Easiest & Most Popular – Telephone (Mon – Fri 8 am – 5 pm). Call and give your information to:
Option 2 Available Online 24/7: Submit our Operating Agreement Questionnaire.
Call Us if You Have any Questions
We don’t charge to answer questions about LLCs or Operating Agreements. Call LLC attorneys Richard C. Keyt (480-664-7472) or his father Richard Keyt (480-664-7478) if you have any questions about LLC Operating Agreements.
For People Who Want to Form an LLC Themselves
If you think you might want to create a do-it-yourself Arizona LLC you must read Arizona LLC attorney Richard Keyt’s article called “Arizona LLC Formation Online Checklist (10 Easy Steps).” This article explains in detail how you can create an Arizona LLC online for $85 in 10 – 15 minutes.