A corporate form that protects its owners from personal liability is an LLC, or limited liability company. Small business owners frequently choose it because it gives them access to specific tax advantages and flexible management alternatives. Prior to forming an LLC, it’s crucial to comprehend the organizer’s responsibilities.
The person or organization in charge of submitting the necessary documents to create an LLC is known as the organizer. The organizer frequently also belongs to the LLC. The organizer must be at least 18 years old and legally capable of entering into contracts; however, they are not necessary to reside in the state where the LLC is created.
The filing of a Notice of Organization with the Secretary of State in the state where the LLC is being formed is one of the organizer’s main duties. Important details regarding the LLC, including its name, address, and the members’ names and addresses, are included in this notification. A statement stating whether the LLC will be run by members or management must also be included in the announcement.
In some states, LLCs must also publish a Notice of Formation in a local newspaper in addition to the Notice of Organization. This is referred to as a Notice for Publication, and states like Arizona frequently demand it. This notice’s objectives are to announce the formation of the LLC to the public and to give any interested parties a chance to file a claim against the LLC.
It could be essential to serve someone through publishing if the LLC is unable to find the person who needs to receive legal notice. For four consecutive weeks, a notice must be published in a local newspaper in Arizona, for instance. The party now has a chance to reply or bring a lawsuit against the LLC.
While an Arizona state business license is not required for LLCs, other licenses or permits can be depending on the type of firm. A contractor might require a construction contractor’s license, but a restaurant might need a health permit or a liquor license.
Last but not least, it’s critical to comprehend the idea of a top-down creditor. This describes a creditor who has a debt to the LLC but not to any particular member. In other words, the creditor is only permitted to seize the assets of the LLC and not the members’ private property. One of the main advantages of an LLC is that it shields its members from personal liability.
In conclusion, the formation and management of the company are greatly influenced by the organizer of an LLC. They are in charge of submitting the relevant paperwork, posting notices as needed, and making sure any license or permission requirements are met. Anyone thinking about forming an LLC must comprehend the organizer’s responsibilities.
Arizona does permit corporations to amend their articles of incorporation. By restating the articles, a corporation can make amendments to its articles of incorporation without submitting a full revision. Corporations can easily revise their articles of organization to reflect changes to the business’s structure or activities by restating them.