What is Arizona’s LLC Act?

Arizona’s 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. This 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 Does Arizona’s New LLC Act Go Into Effect?

Arizona’s Governor, Doug Ducey, signed SB 1353 on April 10th of 2018. This 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after August 31st, 2019 as well as all existing Arizona LLCs after August 31st, 2020 when the former Arizona LLC law is repealed.

How Do I Ensure My LLC is in Compliance?

To ensure your LLC is compliant, 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 newest 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. Contact the experienced attorneys at RM Warner Law today.