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| Arizona LLC Amendments |
| Conclusion to Arizona LLC Focus Article |
When compared to incorporating, a LLC is usually less expensive to start and operate. In addition to the fee charged for filing articles of organization, an Llc is required to publish certain information in the county of its known place of business.
Arizona imposes few administrative formalities, such as filing Annual Reports or paying periodic maintenance fees and taxes. However, nominal fees may be incurred for simple notices which need to be filed if the company, statutory agent or members' addresses change.
After an Llc is organized, certain changes may become necessary and amendments may need to be registered with the ACC. Examples of changes requiring registration of an amendment include changing the company's name, or additions and withdrawals of members or managers.
Amendments are not legally effective until the pertinent documentation is actually filed. Arizona statutes require copies of amendments to be kept in the company's records book.
Considerations before forming an LLC in Arizona - continued Pages (3): 1 | 2 | [3]
Alterations to LLC names and additions or withdrawals of members require that Articles of Amendment be filed and then notice published. If membership composition is altered, the operating agreement should be reviewed, and probably re-drafted to suit the needs of the remaining members.
Modifications to the statutory agent, the agent's address or members' addresses require a Statement of Change to be registered with the ACC at a nominal fee with no publication requirements.
If erroneous statements were made in the Articles of Organization, corrections can be made by filing Articles of Amendment. However, it is more desirable to merely file Articles of Correction, being that the filing fee is less, and because Articles of Correction are not required to be published. Articles of Correction can be utilized instead of amending the articles if an error contained in a document "does not materially alter a substantive provision in the document". (See ARS 29-637).
For more information about amending articles of organization refer to statute 29-633. Basically, the law provides amendment is necessary when an erroneous or false statement was made in the original document, or if within thirty days any arrangements or facts have changed making the articles inaccurate, or when there is a change to the LLC membership or management composition.
The main reason to form a LLC is to secure protection to its owners and managers. Arizona is a cost-effective venue for LLC formation and the limited liability company can be less unwieldy than a corporation.