|Setting Up An LLC|
| A Limited Liability Company (“LLC”) may be formed in Arizona by meeting the requirements of the Arizona LLC Act (the “Act”). The Act indicates that an LLC may be formed for any lawful purpose, except insurance and banking. There are 4 major steps to creating the LLC structure:
Filing the Articles of Organization
Any member, manager or third party can sign the Articles of Organization.
All of the information contained in the Articles of Organization is public record. Once the Articles are filed with the ACC, the information and a scan of the original Articles will be displayed on the ACC’s website. The public can access, view and download the Articles from the ACC’s web site.
Publishing the Articles of Organization or a Notice
The LLC has the choice of either publishing the Articles of Organization or a Notice. Within 60 days of ACC approval, the Articles or Notice must be published in a paper of general circulation in the county of the known place of business of the LLC for three consecutive publications.
If publishing a Notice, it must contain the following information:
Affidavit of Publication
Upon completion of the publication, the publisher will provide an Affidavit of Publication confirming the dates of publication. The Affidavit of Publication must be filed with the ACC within 90 days of filing of the Articles. Once the Affidavit of Publication is filed with the ACC, the legal requirements of forming the LLC are complete.
The LLC is governed by the Operating Agreement (OA); the OA is analogous to the bylaws of a Corporation or a Partnership Agreement for a Partnership.
If the members of an LLC do not prepare an Operating Agreement to govern the business affairs of the LLC or if the Operating Agreement fails to address a particular issue, then the Arizona Statute’s default provisions regarding LLCs will govern the members. It is important to create an Operating Agreement that addresses all the issues that are important for your business affairs to make sure the members are not subject to the default provisions of the Arizona Statute.