| LLC’s can be established with the broad parameters to “transact any and all lawful business for which a limited liability company may be organized under Arizona law.” Arizona statute also allows an LLC the option to deny, limit or reduce any of the powers of the LLC. The LLC may designate in the Articles of Organization that the company is formed for a specific purpose (i.e. to hold real estate). If the LLC is formed for a specific purpose, then the LLC needs to operate in accordance with this purpose. A limitation in the Articles may give the members a breach of contract claim against a manager or member who acts contrary to the limitation in some way. Because Purpose is an optional provision in the Articles the public copy of the Articles on the ACC website is not sufficient notice of Purpose to third parties. (The public notice is sufficient notice of the required items of the Articles). Third parties need to be provided specific notice of the limitation (i.e. the LLC provided a copy of the Articles of Organization to the third party and documented this action). |
