Arizona LLC Operating Agreement
An Arizona LLC Operating Agreement is a legally binding agreement that establishes the organizational structure of your company. It dictates how your LLC will handle important procedures like voting, transferring membership interest, allocating profits and losses, and—should it ever come to this—dissolution.
Unlike Arizona Articles of Organization, your operating agreement is an internal document, which means you don’t have to file your operating agreement with the Secretary of State. However, that doesn’t mean it’s not important. An operating agreement may be your LLC’s most important document. At Northwest, we offer operating agreement templates for a range of management and ownership structures.
Is an operating agreement required in Arizona?
No, Arizona doesn’t require LLCs to have an operating agreement—but it’s a good idea to have one. Without your own operating agreement, your business will be governed by the statutes listed in the Arizona LLC Act (ALLCA). (For example, ALLCA statutes state that voting power be distributed equally among members, but you might want to distribute voting power according to each member’s ownership percentage in the company.)
Do I have to file my operating agreement in Arizona?
No, an operating agreement is an internal document. In fact, if you try to file your operating agreement with the state, it won’t be accepted.
Does a single-member LLC need an operating agreement?
Yes. It may seem odd, but even a single-member LLC needs an operating agreement. An operating agreement can be helpful for performing certain tasks, like opening a bank account or proving limited liability status. Without an operating agreement, a single-member LLC can seem dangerously close to a sole proprietorship (a business entity with no legal separation from its owner).
*This is informational commentary, not advice. This information is intended strictly for informational purposes and does not constitute legal advice or a substitute for legal counsel. This information is not intended to create, nor does your receipt, viewing, or use of it constitute, an attorney-client relationship. More information is available in our Terms of Service.