by Richard Keyt, Arizona LLC attorney & creator of Do-It-Yourself Arizona Limited Liability Company Forms

For more information about why I sell Word versions of my do-it-yourself Articles of Organization for Arizona LLCs and what comes with your purchase, read “Attorney Prepared LLC Forms.”

Articles of Organization – Do-It-Yourself for $27:  Richard Keyt has prepared Articles of Organization for 4,000+ Arizona limited liability companies. This form is essentially the same as the Articles of Organization Rick uses when he forms an Arizona LLC for a client. Although the Arizona Corporation Commission has a fill-in-the-blanks form Articles of Organization, as an Arizona LLC lawyer I never use the ACC’s form for the following reasons:

1.  The Articles of Organization is the fundamental document that creates your LLC. You know what they say about first impressions. The LLC’s Articles of Organization is the primary document that makes a first impression of the LLC. Third parties sometimes want to see the LLC’s Articles of Organization. For example, if you open a bank account in the name of the LLC or if the LLC applies for a bank loan, the banker will want a copy of the LLC’s Articles of Organization. Your LLC’s Articles of Organization can make a good impression or a bad impression on the banker.

2.  Richard Keyt’s Articles of Organization contain provisions in the Section titled “Limitations on Company Action” that are not found in the Arizona Corporation Commission’s two page fill in the blanks form. This section contains provisions that Arizona LLC attorney Richard Keyt believes are important limitations on the ability of the LLC to engage in certain actions.

3.  The last section of Richard Keyt’s Articles of Organization called “Springing Member” contains a provision that ties into a similar provision in Richard’s do-it-yourself Operating Agreement. The springing member provisions in the Articles of Organization and the Operating Agreement are especially important if the LLC has only one member and that member is a person. These two provisions may avoid the termination of an LLC that is owned solely by one person if that person were to die. Arizona law provides that if there is only one member of an Arizona LLC and that member is a person who dies, the LLC automatically terminates, i.e., ceases to exist. This could be a very bad thing! The termination of an LLC could have adverse consequences to the LLC and the person or people who would inherit the interest of the last deceased member. For example, the termination of the LLC could cause the recognition of income and incurrence of income taxes if the deemed distribution of assets of the LLC on its termination is a taxable event. The springing member provisions in the Articles of Organization that tie into similar provisions in Richard Keyt’s Operating Agreement allow the LLC to name a springing member who becomes a temporary member only if the last member were to die. The sole purpose of the springing member is to prevent the termination of the LLC if the last member were to die. The springing member does not have any power or rights to receive money or property form the LLC.

To purchase Arizona LLC attorney Richard Keyt’s custom Articles of Organization for $27 in editable Word 2007 format, click here. You should also purchase a one year subscription to Rick’s 170+ page eBook called the “LLC Operations Manual” for $97.

Purchase My Articles of Organization, Operating Agreement and LLC Operations Manual Bundle and Save $50

The per item purchase price for my Articles of Organization, Operating Agreement and a one year subscription to the LLC Operations Manual is $223.  Save $50 if you purchase all three items together for $173. Click here to purchase this three item bundle.

Disclaimer

The forms are sold “as is” without any representations or warranties. Because using a form will create legal rights and obligations, we recommend that you consult with an attorney before using or editing a form. The purchaser of a form does not become a client of Richard Keyt or the KEYTLaw, LLC, firm. When you buy a legal form, you are buying a product, not legal services or legal advice.