The new Arizona LLC Act (ALLCA) applies to all Arizona LLCs created after August 31, 2019, and ALL Arizona LLCs after August 31, 2020. We call the new law the Arizona liability company act because it levies many new duties on members and managers for which they can be sued.
If you have an existing Arizona LLC or will form one in the future the LLC needs an Operating Agreement with provisions that comply with Arizona’s new LLC law effective September 1, 2019. I call this an ALLCA compliant Operating Agreement. Current Arizona LLC will be repealed so your LLC’s Operating Agreement needs to be written for current and future Arizona LLC law.
Your Operating Agreement should be drafted by an experienced Arizona LLC attorney like me because the issues created by Arizona’s new LLC Act are complex. I’ve invested 50+ hours studying the new LLC Act and writing 17+ pages of new text for my Operating Agreement to make it compatible with the new law.
Warning for Multi-Member LLCs: All multi-member Arizona LLCs that are not owned solely by a married couple (LLCs that exist now and LLCs created in the future) need an Operating Agreement drafted to eliminate the many liability creating statutes contained in Arizona’s new LLC Act. The new LLC law levies duties on members and managers the violation of which can give other members the right to sue and cause a member or manager to incur financial liability. Multi-member Arizona LLCs need an Operating Agreement that eliminates these liability traps and that makes the company a limited liability company rather than a liability company.
If you are a member of a multi-member Arizona LLC (other than a married couple owned LLC) if would be very foolish and potentially financially harmful to you0 if the members of your LLC do not sign an Operating Agreement like mine that is drafted to eliminate the liability creating provisions in Arizona’s new LLC law.
Here are some of the liability creating reasons why all Arizona LLCs need an ALLCA compliant Operating Agreement:
- Reason #9. Records? We Ain’t Got No Stinking Records: Disclose or Be Sued.
- Reason #8. Manager of LLC Says “Toto, We’re Not in Kansas Anymore.
- Reason #7. Run Forrest Run: Arizona LLC Act Inflicts Numerous New Duties on Members.
- Reason #6. Operating Agreement Should Limit Managers’ Powers.
- Reason #5. Get Sued for Failing to Disclose Conflict of Interest.
- Reason #4. Beware of Baffling Section 29-3407.B.
- Reason #3. Majority in Interest Nightmare.
- Reason #2. Managers Must Be Named in Operating Agreement.
- Reason #1. Beware of Section 29-3404.A.
How to Hire Richard Keyt to Prepare an ALLCA Compliant Operating Agreement
Two ways to get an ALLCA compliant Operating Agreement:
- Hire me to form a new Arizona LLC with an ALLCA compliant Operating Agreement, or
- If you have an existing Arizona LLC, hire me to prepare an ALLCA compliant Operating Agreement for the LLC.
Option 1 Form a New LLC: To hire me, Arizona LLC attorney Richard Keyt (6,200+ LLCs formed and 138 five star Google & Facebook reviews), to form your new LLC complete our online LLC formation questionnaire or call me at 480-664-7478 and give me your information. Your LLC will be formed the first Wednesday or Friday after we are hired. See the “Contents of the Bronze ($397), Silver ($597) & Gold ($997) LLC Packages.
Option 2 Purchase an Operating Agreement: If you have an existing Arizona LLC and want to upgrade to a new ALLCA compliant Operating Agreement complete our online Operating Agreement questionnaire.