A client sent me an email in which he said, “the “Arizona Department of Real Estate is asking for ‘a copy of the resolution signed by members stating: whether management of LLC is established as manager/member controlled’.”
This is the first time in the 34 years I’ve been forming Arizona LLCs that anybody ever asked that question. If that is really what the Department of Real Estate wants then it/they are ignorant of Arizona LLC law and are asking for an irrelevant document that does not actually prove the LLC’s type of management.
The type of management of an Arizona LLC is not determined by resolutions signed by the members. Management type is stated in the Arizona LLC’s Articles or Organization filed with the Arizona Corporation Commission. Arizona Revised Statutes Section 29-3201.B.4 states:
“The Articles of Organization must state . . . whether the company is a manager-managed limited liability company or a member-managed limited liability company.”
The Articles of Organization filed with the Arizona Corporation Commission to create an Arizona LLC contains a statement that the LLC is manager managed or member managed. Anybody who wants to verify the type of management of an Arizona LLC should look up the LLC on the ACC’s website (enter the name of the LLC in the search box on the top right) then click on the link to the Articles of Organization and read the management type set forth in the Articles.