What is Arizona’s New LLC Act?
Arizona’s new LLC act (Arizona Limited Liability Company Act (ALLCA)) will require all LLCs to have an operating agreement. An operating agreement ensures the obligations for each member and manager are explicitly detailed. It will also bind members to a commitment of loyalty to act on behalf of the company.
Who Does Arizona’s New LLC Act Impact?
This new act impacts those who have an existing LLC in Arizona, or are considering one in the future. This law also applies to those who have multi-member LLCs.
When Was Arizona’s New LLC Act Signed?
Arizona’s Governor, Doug Ducey, signed SB 1353 on April 10th of 2018. Arizona’s new act repeals the current Arizona law from 1992 and replaces it with the new ALLCA.
When Does Arizona’s New LLC Act Go Into Effect?
This new law goes into effect on September 1st, 2019. It will apply to all Arizona LLCs created after August 31st, 2019 as well as all existing Arizona LLCs after August 31st, 2020 when the current Arizona LLC law is repealed.
How Do I Ensure My LLC is in Compliance?
To ensure your LLC is in compliance with the new law, it is best to have a business lawyer draft and review your operating agreement. An operating agreement must contain language that (i) complies with the new law and (ii) eliminates the many liability creating provisions contained in the ALLCA. To review the new ALLCA click here.
Are You Ready to Speak With a Business Lawyer?
The process of setting up a business entity can be incredibly complex, and it requires a certain level of business law expertise that most entrepreneurs do not have. For this reason, it’s crucial that you seek out the services of a business law attorney. Contactthe experienced attorneys at RM Warner Law today.