A singe member limited liability company ("SMLLC") is a business entity similar to a limited liability company ("LLC"), except that a SMLLC only has one member. SMLLC'S are popular because they allow a single owner business to be treated like an LLC.
Arizona Limited Liability Company
To form a limited liability company under Arizona law, you file Articles of Organization with the Arizona Corporation Commission (the “ACC”), submit a cover sheet to the ACC along with the Articles and publish the a Notice of Publication in a newspaper of general circulation for three consecutive publications.
Number of Owners & Restrictions
The owners of an Arizona limited liability company are called “members.” An Arizona limited liability company may be formed with a single member or an unlimited number of members. There are no limits on the number of members or the types of entities that can be members of an Arizona limited liability company.
Control & Management
Control of an Arizona limited liability company is vested in the members. Arizona law provides for two types of management of an Arizona limited liability company. The type of management must be stated in the Articles of Organization filed with the ACC. Arizona limited liability companies are either member managed or manager managed. If the company is member managed, all members have management responsibility.
If the company is manager managed, the manager(s) selected by the members are responsible for managing the business and affairs of the company. A manager managed company may have one manager or more than one manager. Managers do not have to be members. Managers can be a person or an entity and reside inside or outside Arizona.
An Arizona limited liability company may operate without a written agreement among the members. Attorneys recommend that limited liability companies that have more than one member adopt a written agreement called an “Operating Agreement” that states the rights and obligations...