{"id":9986,"date":"2018-05-08T10:39:57","date_gmt":"2018-05-08T17:39:57","guid":{"rendered":"https:\/\/www.keytlaw.com\/azllclaw\/?page_id=9986"},"modified":"2018-05-23T12:40:44","modified_gmt":"2018-05-23T19:40:44","slug":"ars-section-29-3404","status":"publish","type":"page","link":"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3404\/","title":{"rendered":"ARS Section 29-3404 Sharing of and Right to Distributions Before Dissolution"},"content":{"rendered":"

A. Any distribution made by a limited liability company before its dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the extent necessary to comply with a transfer effective under Section 29-3502<\/a> or charging order in effect under Section 29-3503<\/a>.<\/p>\n

B. A person has a right to a distribution before the dissolution and winding up of a limited liability company only if the company decides to make an interim distribution. A person’s dissociation does not entitle the person to a distribution.<\/p>\n

C. A person does not have a right to demand or receive a distribution from a limited liability company in any form other than money. except as otherwise provided in Section 29-3707<\/a>.D, A company may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person’s share of distributions.<\/p>\n

D. If a member or transferee becomes entitled to receive a distribution, the member or transferee has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution.\u00a0 However, the company’s obligation to make a distribution is subject to offset for any amount owed to the company by the member or a person dissociated as a member on whose account the distribution is made.<\/p>\n

Note<\/strong>:\u00a0 As of September 1, 2020, this statute applies to all Arizona LLCs .\u00a0 The text above shows the statute as of January 1, 2025.\u00a0 To see if the Arizona legislature modified this statute after January 1, 2025, go the the Arizona legislature's website for Title 29, Chapter 7<\/a>.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"

A. Any distribution made by a limited liability company before its dissolution and winding up must be in equal shares among members and persons dissociated as members, except to the extent necessary to comply with a transfer effective under Section 29-3502 or charging order in effect under Section 29-3503. B. A person has a right to a distribution before the dissolution and winding up of a limited liability company only if the company decides to make an interim distribution. A person’s dissociation does not entitle the person to a distribution. C. A person does not have a right to demand or receive a distribution from a limited liability company in any form other than money. except as otherwise provided in Section 29-3707.D, A company may distribute an asset in kind only if each part of the asset is fungible with each other part and each person receives a percentage of the asset equal in value to the person’s share of distributions. D. If a member or transferee becomes entitled to receive a distribution, the member or transferee has the status of, and is entitled to all remedies available to, a creditor of the limited liability company with respect to the distribution.\u00a0 However, the company’s obligation to make a distribution is subject to offset for any amount owed to the company by the member or a person dissociated as a member on whose account the distribution is made.<\/p>\n","protected":false},"author":158,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"om_disable_all_campaigns":false,"footnotes":""},"class_list":["post-9986","page","type-page","status-publish","hentry"],"yoast_head":"\nARS Section 29-3404 Sharing of and Right to Distributions Before Dissolution - Arizona LLC Law<\/title>\n<meta name=\"description\" content=\"The complete text of Arizona Revised Statutes Section 29-3404 of Arizona's new LLC law that is effective September 1, 2019.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3404\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ARS Section 29-3404 Sharing of and Right to Distributions Before Dissolution\" \/>\n<meta property=\"og:description\" content=\"The complete text of Arizona Revised Statutes Section 29-3404 of Arizona's new LLC law that is effective September 1, 2019.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3404\/\" \/>\n<meta property=\"og:site_name\" content=\"Arizona LLC Law\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:modified_time\" content=\"2018-05-23T19:40:44+00:00\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3404\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3404\\\/\"},\"author\":{\"name\":\"Katie Keyt\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/person\\\/745ac248a7f18e1ef5455f0dcee1f591\"},\"headline\":\"ARS Section 29-3404 Sharing of and Right to Distributions Before Dissolution\",\"datePublished\":\"2018-05-08T17:39:57+00:00\",\"dateModified\":\"2018-05-23T19:40:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3404\\\/\"},\"wordCount\":256,\"publisher\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#organization\"},\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3404\\\/\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/ars-section-29-3404\\\/\",\"name\":\"ARS Section 29-3404 Sharing of and Right to Distributions Before Dissolution - 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