Our 4 Operating Agreements

Our 4 Operating Agreements2017-07-04T15:13:10+00:00

by Richard Keyt, Arizona LLC & business law attorney and Richard C. Keyt, California and Arizona LLC & business law attorney

Richard Keyt (the father) has a masters degree in federal income tax law from New York University School of Law.  He formed his first Arizona LLC on the day Arizona’s LLC law became effective in October of 1992. The Keyts have prepared 6,000+ LLC Operating Agreements.

Our clients have a choice of four different Operating Agreements unlike almost all other Operating Agreement preparers who offer a one size fits all Operating Agreement. Our four Operating Agreements are:

  • $247 Bronze Operating Agreement for Arizona & California LLCs: This twenty-five page Operating Agreement is for a single member / owner LLC or an LLC owned jointly by a married couple.
  • $497 Silver Tax Audit Agreement for LLCs formed in any state: This agreement is not an Operating Agreement.  It is only for LLCs taxed as partnerships and partnerships.  The agreement contains language that complies with the new partnership tax audit rules effective January 1, 2018.
  • $697 Gold Operating Agreement for Arizona & California LLCs: This 55 page Operating Agreement is for LLCs that have two or more members / owners.
  • $1,597 Platinum Operating Agreement for Arizona & California LLCs:  This  80+ page Operating Agreement is our Gold Operating Agreement for multi-member LLCs with buy sell provisions (the exit strategy).

How to Hire Us to Prepare an Operating Agreement

Go to Buy an Operating Agreement to hire us to prepare one or our four types of Operating Agreements.  You may also call LLC attorney Richard Keyt (480-664-7478) or his son LLC attorney and former CPA Richard C. Keyt (480-664-7472) and give your LLC information.

Characteristics of Our Four Types of Operating Agreements

Operating Agreement Contents$247 Bronze$497 Silver$697 Gold$1,597 Platinum
Operating Agreement Contents$247 Bronze$497 Silver$697 Gold$1,597 Platinum
Our Operating Agreements are for LLCs formed in these statesAZ & CA
All 50 states
AZ & CA
AZ & CA

Digital Signatures: Members have the option to sign the Operating Agreement digitally using DocuSign.

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The Operating Agreement is emailed to members in Adobe pdf format.

The Operating Agreement may be signed before the LLC is created.

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LLCs Taxed as Partnerships: If the LLC is or will be taxed as a partnership include the new partnership tax audit provisions created under the Bipartisan Budget Act of 2015 that are effective 1/1/18.

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LLCs Taxed as Partnerships: If the LLC is or will be taxed as a partnership designate the person who will be the LLC's partnership representative. If the LLC does not designate the partnership the IRS can name the PR.

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Married Arizona or California Resident Owns as Separate Property: If member is married & will own LLC as separate property state that fact in the Operating Agreement.

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Non-Owner Spouse Must Sign a Disclaimer: For a married Arizona or California resident to own the LLC as his or her separate property the non-owner spouse must sign a Disclaimer in which the non-owner spouse disclaims any interest in the LLC. Read "How Do I Acquire an Ownership Interest in an Arizona LLC as Separate Property?"

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Community Property with Right of Survivrship: If the member is an Arizona or California resident & wants to own the LLC as community property with right of survivorship state that fact in the Operating Agreement. This causes interest of one spouse to be inherited by the other spouse without the need for a probate if the couple are Arizona residents. If the Operating Agreement does not state the Arizona couple owns the LLC as community property with right of survivorship then they own it as mere community property and the interest of a deceased spouse does may need to go through probate. Read "How a Married Couple Owns an Arizona LLC as Community Property."

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Successor Statutory Agent: Name a successor statutory agent in case the LLC's statutory agent dies, loses capacity or resigns.

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Successor Manager:: Name a person to become the successor manager if the sole member were to die or become incapacitated. If the sole member dies and the LLC is member managed the LLC will automatically convert to manager managed if it is member managed.

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Death of Sole Member: Name a springing member to become a temporary member if the sole member dies.

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Death of a Member: A member may designate who inherits the LLC if the member dies. This causes automatic transfer on death without the need for a probate. Read "No Written Contracts + Death of Single Member LLC Owner = Nightmare" and and "Who Will Inherit Your LLC if You Die?." The ability to name who inherits the interest of a sole member who dies is the primary reason all single member LLCs need an Operating Agreement.

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Members Approval Required for Specified Actions: The Operating Agreement contains a list of major actions that the LLC cannot take without the approval of the members.

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Dead Lock Breaking Clause: This optional clause is used to break a dead lock when action is proposed and the number of votes for and against the action are the same.

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Prohibition on Competition: Members are prohibited from competing with the LLC's business or owning any part of a company that competes with the LLC's business.

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Intellectual Property: This clause says that any intellectual property created by a member belongs to the member or to the LLC.

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Prohibition on Assignment of Member's Interest in the LLC: This clause prohibits members from assigning or transferring all or a part of their membership interest without the consent of the other members.

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Prohibition on Filing a False Document with the Arizona Corportion Commission: If member files a false document with the ACC such as an amendment that removes a member without the authority the member will be liable to the other members for liquidated damages.

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Prohibition on adding or removing a signer on the LLC's bank account without authority: If member files adds or removes a signer on the LLC's bank account without the authority the member will be liable to the other members for liquidated damages.

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Right of First Refusal: If a member proposes to assign his/her/its interest in the LLC the LLC has an option to acquire the interest on the same terms and conditions.

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Drag Along Clause: If a member owns more than 50% and wants to sell all of the LLC the majority member can force the minority members to sell on the same terms and conditions.

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Tag Along Clause: If a member owns more than 50% and wants to sell his/her/its interest in the LLC minority members can force the majority member to cause the sale to include the minority members' interest on the same terms and conditions.

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Events that Give LLC Option to Buy Out a Member: The Operating Agreement contains a list of events that if done by a member gives the LLC the option to buy out the interest of the member. Some events can cause a mandatory buy out such as death when the buy out is funded by life insurance.

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Optional Mandatory Buy Out Clause: Members have option to include a clause that gives each member an option to start a process that will result in the member being bought out or buying the entire interest of another member.

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Pick from Six Valuation Methods: Select the valuation method that works best for your members from the six offered methods.

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Who gets the excess life insurance if the proceeds exceed the purchase price?: If a death buy out is funded by insurance and the amount paid on the death of a member exceeds the purchase price does the excess go to the seller or the buyer?

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How to Hire Us to Prepare an Operating Agreement

Go to Buy an Operating Agreement or a Tax Audit Agreement to hire us to prepare one or our Operating Agreements or a Tax Audit Agreement.  You may also call LLC attorney Richard Keyt (480-664-7478) or his son LLC attorney and former CPA Richard C. Keyt (480-664-7472) and give your LLC information.