This article is written by Arizona LLC attorneys Richard Keyt and his son Richard C. Keyt who have drafted 9,000+ LLC Operating Agreements. They have 234 five star Google reviews and 354 five star online reviews.
The article explains the 20 ways owners of Arizona LLCs can be harmed if their LLC doesn’t have a comprehensive well written Operating Agreement signed by all of the members. Arizona LLC law does not require Arizona LLCs or PLLCs to have an Operating Agreement, but these two Arizona LLC attorneys recommend that the members of ALL Arizona companies sign an Operating Agreement that eliminates all of the 20 harms described below.
What is an LLC Operating Agreement?
An LLC Operating Agreement is a contract between the LLC and all of its owners (called members) and managers (if the LLC is manager managed) that names all members and managers, the percentage of the LLC that each member owns, if a member is required to contribute money or property to the LLC, how meetings are called and when action cannot be taken without the approval of a majority or a super majority of the members or all of the members. The Operating Agreement sets the rules for governing the LLC.