Arizona LLC Operating Agreement Template

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An Arizona LLC Operating Agreement formats a composition to formally cite a written understanding of how a limited liability company will be run and which stipulated rights and duties will be assigned to one or more associated members. The provided state form has space to indicate company information, formation details, and whether the business will have one or multiple interest holders. LLCs can utilize the standard form or elect to use individualized multi-member or single-member operating agreements, depending on the preference of the founding members. It is not a requirement that all LLCs employ the use of this contract to achieve proper standing with the Arizona state government, but it can be helpful to present when seeking funding from investors or banking institutions.

Laws

Operating Agreements – § 29-3105

Definitions – “Operating Agreement” means the agreement, whether or not referred to as an operating agreement and whether oral, implied, in a record, or in any combination thereof, of all the members of a limited liability company, including a sole member, concerning the matters described in section 29-3105, subsection A. Operating agreement includes the agreement as amended or restated (§ 29-3102(17)).

Formation – § 29-3201

By Type (2)

Multi-Member LLC Operating Agreement – Composes an organizational model for an LLC with two (2) or more interest holders to individualize a structured plan for operation and confirm member share percentages.

Single-Member LLC Operating Agreement – Organizes an explanation of company commitments and procedures for an LLC with one (1) owning individual.

Create an LLC in Arizona (6 Steps)

Choosing to form a limited liability can be a favorable option for a number of reasons. LLC classification allows a company to be designated as a separate entity from its interest-holding members. This can effectively protect owning individuals’ personal assets from possible legal action associated with the business. Another plus of filing as an LLC is that it can potentially serve as a more favorable decision regarding tax purposes.

Step 1 – Select a Name for the Business

It is vital to secure a desired name to represent your business when establishing an LLC. There are several requirements that a chosen business name must adhere to by law to be used by a newly formed entity. One stipulation is that the proposed name cannot currently be in use by another company registered in Arizona. Use the Arizona Corporations Commission’s entity search tool to ensure your business name’s availability. Upon determining an available name, additional consideration must be made to confirm that the entity name meets the specifications of distinguishability as outlined on the ACC’s website. LLC names must also include “limited liability company” or an abbreviation such as L.L.C. to be deemed viable (§ 29-3112).

The business name can be designated when filing organization paperwork or reserved prior to application to secure a name for 120 days. Domestic LLCs that wish to reserve a name (optional) before applying for formation can apply online, by mail, or by fax as directed below: