{"id":8418,"date":"2016-12-04T10:20:52","date_gmt":"2016-12-04T17:20:52","guid":{"rendered":"http:\/\/www.keytlaw.com\/azllclaw\/?p=8418"},"modified":"2021-01-02T15:05:52","modified_gmt":"2021-01-02T22:05:52","slug":"custom-oa","status":"publish","type":"post","link":"https:\/\/www.keytlaw.com\/azllclaw\/2016\/12\/custom-oa\/","title":{"rendered":"Why Your Arizona LLC Needs Richard Keyt&#8217;s Custom Operating Agreement"},"content":{"rendered":"<p style=\"text-align: justify;\">I formed my first Arizona LLC the day the Arizona LLC law became effective in October of 1992.\u00a0 Since then I have formed 10,000+ Arizona LLCs.\u00a0 In practicing LLC law for 33 years I have seen the same LLC operational problems over and over.\u00a0 When I learn about an operational problem I add new language to my LLC Operating Agreement to &#8220;fix&#8221; or prevent the problem.<\/p>\n<p style=\"text-align: justify;\">For example, one of the most common LLC operational problems occurs when members cannot agree and need a company divorce.\u00a0 When members have major disagreements over running the LLC it is very common for a member without any authority or basis to file an amendment to the LLC&#8217;s Articles of Organization that removes one or more members as members of the LLC.\u00a0 The culprit may also open a new bank account and misrepresent to the bank who the members of the LLC are.<\/p>\n<p style=\"text-align: justify;\">People who file false documents with the ACC are usually unaware that they could be committing a felony.\u00a0 Arizona Revised Statutes <a href=\"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3205\/\" target=\"_blank\" rel=\"noopener noreferrer\">Section 29-3205.C<\/a>\u00a0states:<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">&#8220;An individual who signs a record authorized or required to be filed under this Chapter affirms under penalty of perjury that, to that individual\u2019s knowledge, the information stated in the record is accurate.&#8221;<\/p>\n<\/blockquote>\n<p>Arizona Revised Statutes <a href=\"https:\/\/www.azleg.gov\/ars\/13\/02702.htm\" target=\"_blank\" rel=\"noopener noreferrer\">Section 13-2702<\/a> states:<\/p>\n<blockquote><p>A. A person commits perjury by making either:<\/p>\n<p style=\"text-align: justify;\">1. A false sworn statement in regard to a material issue, believing it to be false.<\/p>\n<p style=\"text-align: justify;\">2. A false unsworn declaration, certificate, verification or statement in regard to a material issue that the person subscribes as true under penalty of perjury, believing it to be false.<\/p>\n<p>B. <strong>Perjury is a class 4 felony<\/strong>.<\/p><\/blockquote>\n<p style=\"text-align: justify;\">I am not aware of that the Arizona Attorney General has prosecuted anybody who filed a false document with the Arizona Corporation Commission.<\/p>\n<p style=\"text-align: justify;\">The purpose of Arizona Revised Statutes <a href=\"https:\/\/www.keytlaw.com\/azllclaw\/ars-section-29-3205\/\" target=\"_blank\" rel=\"noopener noreferrer\">Section 29-3205.D<\/a>\u00a0is to reduce false filings with the Arizona Corporation Commission and give aggrieved members a remedy.\u00a0 This statute states:<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">&#8220;A person that signs a record, or causes another to sign it on the person\u2019s behalf, knowing that the record contains inaccurate information at the time it is signed, is liable to the limited liability company and to each member of the company for damages resulting from the inaccurate information.&#8221;<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">The problems with this statute are: (i) proving damages for a false filing is very difficult, and (ii) the cost to sue coupled with the risk of winning and collecting a judgment makes this remedy very risky.\u00a0 Few members will actually use this statute to sue another member.<\/p>\n<p style=\"text-align: justify;\">After seeing the false amendment to the Articles of Organization too many times I added a clause to my Operating Agreements that provides that a member who files a false document with the Arizona Corporation Commission is liable to all other members for liquidated damages of $10,000 and if the damages are not paid in full within sixty days the member who filed the false document ceases to be a member.<\/p>\n<p style=\"text-align: justify;\"><strong>Why Your Existing or New Arizona LLC Needs Richard Keyt&#8217;s State of the Art Operating Agreement<\/strong><\/p>\n<p style=\"text-align: justify;\">I have prepared 10,000+ Arizona LLC Operating Agreements.\u00a0 My Operating Agreement is unlike any Operating Agreement prepared by anybody else including attorneys because it contains provisions I created to prevent or solve common LLC operational problems I have seen representing thousands of LLCs.\u00a0 For a partial list of common LLC operational problems see my article called &#8220;<a href=\"http:\/\/www.keytlaw.com\/azllclaw\/oa\/\" target=\"_blank\" rel=\"noopener noreferrer\">Common LLC Disasters a Good Operating Agreement Prevents<\/a>.&#8221;<\/p>\n<p style=\"text-align: justify;\">To hire me to prepare an Operating Agreement for an LLC that does not have one or to amend an Operating Agreement for an LLC whose members signed an Operating Agreement complete my comprehensive <a href=\"https:\/\/azllc.com\/oaq\" target=\"_blank\" rel=\"noopener noreferrer\">Operating Agreement Questionnaire<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I formed my first Arizona LLC the day the Arizona LLC law became effective in October of 1992.\u00a0 Since then I have formed Arizona LLCs.\u00a0 In practicing LLC law for years I have seen the same LLC operational problems over and over.\u00a0 When I learn about an operational problem I add new language to my LLC Operating Agreement to &#8220;fix&#8221; or prevent the problem. For example, one of the most common LLC operational problems occurs when members cannot agree and need a company divorce.\u00a0 When members have major disagreements over running the LLC it is very common for a member without any authority or basis to file an amendment to the LLC&#8217;s Articles of Organization that removes one or more members as members of the LLC.\u00a0 The culprit may also open a new bank account and misrepresent to the bank who the members of the LLC are. People who file false documents with the ACC are usually unaware that they could be committing a felony.\u00a0 Arizona Revised Statutes Section 29-3205.C\u00a0states: &#8220;An individual who signs a record authorized or required to be filed under this Chapter affirms under penalty of perjury that, to that individual\u2019s knowledge, the information stated in the record is accurate.&#8221; Arizona Revised Statutes Section 13-2702 states: A. A person commits perjury by making either: 1. A false sworn statement in regard to a material issue, believing it to be false. 2. A false unsworn declaration, certificate, verification or statement in regard to a material issue that the person subscribes as true under penalty of perjury, believing it to be false. B. Perjury is a class 4 felony. I am not aware of that the Arizona Attorney General has prosecuted anybody who filed <a href=\"https:\/\/www.keytlaw.com\/azllclaw\/2016\/12\/custom-oa\/\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[29,37],"tags":[],"class_list":["post-8418","post","type-post","status-publish","format-standard","hentry","category-operating-agreements","category-operating-llcs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why Your Arizona LLC Needs Richard Keyt&#039;s Custom Operating Agreement - Arizona LLC Law %<\/title>\n<meta name=\"description\" content=\"Why your Arizona LLC needs an Operating Agreement prepared by an Arizona LLC attorney who has prepared 7,300+ LLC Operating Agreements.\" \/>\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\/2016\/12\/custom-oa\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Your Arizona LLC Needs Richard Keyt&#039;s Custom Operating Agreement\" \/>\n<meta property=\"og:description\" content=\"Why your Arizona LLC needs an Operating Agreement prepared by an Arizona LLC attorney who has prepared 7,300+ LLC Operating Agreements.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.keytlaw.com\/azllclaw\/2016\/12\/custom-oa\/\" \/>\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:author\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:published_time\" content=\"2016-12-04T17:20:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-01-02T22:05:52+00:00\" \/>\n<meta name=\"author\" content=\"Richard Keyt\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Richard Keyt\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2016\\\/12\\\/custom-oa\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2016\\\/12\\\/custom-oa\\\/\"},\"author\":{\"name\":\"Richard Keyt\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/person\\\/9d6c74d30296559f95e238fa25182391\"},\"headline\":\"Why Your Arizona LLC Needs Richard Keyt&#8217;s Custom Operating Agreement\",\"datePublished\":\"2016-12-04T17:20:52+00:00\",\"dateModified\":\"2021-01-02T22:05:52+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2016\\\/12\\\/custom-oa\\\/\"},\"wordCount\":630,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#organization\"},\"articleSection\":[\"Operating Agreements\",\"Operating LLCs\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2016\\\/12\\\/custom-oa\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2016\\\/12\\\/custom-oa\\\/\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2016\\\/12\\\/custom-oa\\\/\",\"name\":\"Why Your Arizona LLC Needs Richard Keyt's Custom Operating Agreement - 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