1.0Arizona LLC Lawhttps://www.keytlaw.com/azllclawRichard Keythttps://www.keytlaw.com/azllclaw/author/1llclawyer/rich600338<blockquote class="wp-embedded-content" data-secret="P4PCkvU4EE"><a href="https://www.keytlaw.com/azllclaw/2018/05/new-law-operating-agreement/">Should My Arizona LLC Adopt an Operating Agreement Drafted for the New LLC Act?</a></blockquote><iframe sandbox="allow-scripts" security="restricted" src="https://www.keytlaw.com/azllclaw/2018/05/new-law-operating-agreement/embed/#?secret=P4PCkvU4EE" width="600" height="338" title="“Should My Arizona LLC Adopt an Operating Agreement Drafted for the New LLC Act?” — Arizona LLC Law" data-secret="P4PCkvU4EE" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"></iframe><script type="text/javascript"> /* <![CDATA[ */ /*! This file is auto-generated */ !function(d,l){"use strict";l.querySelector&&d.addEventListener&&"undefined"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!/[^a-zA-Z0-9]/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret="'+t.secret+'"]'),o=l.querySelectorAll('blockquote[data-secret="'+t.secret+'"]'),c=new RegExp("^https?:$","i"),i=0;i<o.length;i++)o[i].style.display="none";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute("style"),"height"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):"link"===t.message&&(r=new URL(s.getAttribute("src")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener("message",d.wp.receiveEmbedMessage,!1),l.addEventListener("DOMContentLoaded",function(){for(var e,t,s=l.querySelectorAll("iframe.wp-embedded-content"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute("data-secret"))||(t=Math.random().toString(36).substring(2,12),e.src+="#?secret="+t,e.setAttribute("data-secret",t)),e.contentWindow.postMessage({message:"ready",secret:t},"*")},!1)))}(window,document); //# sourceURL=https://www.keytlaw.com/azllclaw/wp-includes/js/wp-embed.min.js /* ]]> */ </script> Recently somebody for whom I formed an Arizona LLC asked me if Arizona’s new LLC act (ALLCA) that is effective 9/1/19 for LLCs formed after 8/31/19 and all Arizona LLCs after 8/31/20 will require Arizona LLCs to adopt an Operating Agreement that contains language that makes the agreement compatible with ALLCA.  The short answer is no.  ALLCA does not require an Arizona LLC to have an Operating Agreement or amend existing Operating Agreements. As an Arizona LLC attorney who has formed LLCs my answer to the question, even though ALLCA does not require an Arizona LLC to have an ALLCA complaint Operating Agreement is that all Arizona LLCs should have an ALLCA compliant Operating Agreement because it would be extremely foolish and potentially a costly mistake for an Arizona LLC to fail to have an ALLCA compliant Operating Agreement. I recommend that all Arizona LLCs adopt an Operating Agreement that contains provisions derived from or based on the statutory provisions contained in ALLCA.  Because all of Arizona’s existing LLC statutes will be completely eliminated and replaced by the new ALLCA, all Arizona LLCs need an ALLCA compliant Operating Agreement.  To me it is a no brainer. New Arizona LLC law means all Arizona LLCs need an Operating Agreement drafted for the new law.  If you are thinking of forming a new Arizona LLC and will not get an ALLCA compliant Operating Agreement, ask yourself WHY?  Don’t you want an agreement drafted for Arizona’s new LLC law now?  Your new Arizona LLC’s Operating Agreement should be ALLCA compliant now so you don’t have to modify the Operating Agreement before September 1, 2020, to make it compliant with Arizona’s new LLC law. ALLCA Compliant Operating Agreement What do [...]