So You Want to Invest in Your Friend’s Business (Part One)

So You Want to Invest in Your Friend’s Business (Part One)

Business Formation, Corporations, Limited Liability Company, Operating Agreement, Sale of Business
At least once a week I get contacted by someone who is looking to "invest in a friend's business".  The call or e-mail usually goes something along these lines: "I want to invest in my friend's business" "My friend actually owns X% of the business with other partners" "I will be purchasing [some amount]% of my friend's X%" "It's not a large amount of money, just $[insert dollar amount that is usually a large amount of money to most people]" "I want to be protected" Because this is a question that comes up frequently enough, I figured I would give my faithful readers a freebie and highlight some of the main (but by no means only) issues that come with sinking your money into a friend's company, hopefully helping avoid…
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Can I Change My Statutory Agent without Their Permission?

Can I Change My Statutory Agent without Their Permission?

Business Formation, Corporations, Entity Formation, Limited Liability Company
Startups and established businesses often hire an attorney to set up their Arizona LLC and also have that same attorney serve as the company's statutory agent here. Changing the Arizona statutory agent for an LLC However, sometimes the business owners may want to go in a different direction (for example, a professional statutory agent company or another attorney) or just handle the statutory agent duties themselves. The question then becomes:  Do you as the managing member or members of the LLC have to let the current statutory agent know about this switch?  In other words, do you need the current statutory agent's actual approval or OK first? Do I need my Arizona statutory agent's permission? I was asked this question recently by a long-time friend who was the managing member…
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