How is an Arizona limited liability company governed if it does not have an Operating Agreement?
An Arizona limited liability company that does not have an Operating Agreement is governed by the Arizona Limited Liability Company Act (the “Act”) found in Chapter 4 of Title 29 of the Arizona Revised Statutes. Arizona limited liability companies that do not have an Operating Agreement must look to the Arizona Limited Liability Company Act to determine the rights and obligations of the members, managers and the company. The Arizona Limited Liability Company Act provides many provisions that affect members, managers and limited liability companies. However, because the Act does not address many common issues that arise in governing limited liability companies, KEYTLaw advises the owners and prospective owners of an Arizona limited liability company to adopt a written comprehensive Operating Agreement if there are or will be multiple members.
