Just a few weeks ago the Arizona Corporation Commission was reviewing Articles of Organization filed with the $85 expedited filing fee in 3 – 9 business days. We had many Articles reviewed and approved in three business days.
That was the good old days. Since the ACC’s new online filing system went live on May 20, 2018, the ACC is taking 20 – 26 business days to review Articles of Organization filed with the expedited filing fee and 60 – 66 business days to review Articles filed with the regular $50 filing fee. When the Articles are approved the effective date (birth date) of the LLC is the date the Articles of Organization was received by the ACC unless the Articles provide for a later date.
This delay in approvals creates the following problems:
- Some banks will not open a bank account for the LLC until its Articles of Organization are approved. If you can’t wait to open a bank account go to a bank that doesn’t require that the Articles be approved by the ACC before opening a bank account.
- Real estate closings. A title insurance company will not issue title insurance when the buyer is an LLC until the ACC approves its Articles of Organization. Several years ago when the ACC had a 60+ day delay, it had a proceed that enabled a pending LLC to move to the front of the review line and get approved so that a real estate transaction could close. I don’t know if this procedure is still available, but call me if you need to expedite for a closing.
Moral of this story: Always pay the additional $35 and file using the $85 expedited filing fee when you form a new LLC or PLLC.