Big changes are on the horizon for Arizona limited liability companies. Arizona's Limited Liability Company Act has been entirely rewritten. Effective for new LLCs beginning on August 31, 2019, and to all existing LLCs on August 31, 2020, the new Limited Liability Company Act makes important changes to voting rights, distributions, and fiduciary duties. Many of these changes will not be welcome for Arizona LLCs. Thankfully, the new Act allows LLCs to opt out of many of these changes in their Operating Agreements. This option, along with the underlying changes to the LLC Act, make having an updated Operating Agreement even more important to help secure the benefits of a limited liability company. As the Act's effective date approaches, our LLC clients should expect to hear more from LLF about these new changes.
