23Aug 2023 by bhandlaw
Why You Should Form Your LLC or Incorporate a New Business BEFORE 2024!

Why You Should Form Your LLC or Incorporate a New Business BEFORE 2024!

Business Formation, Corporations, Limited Liability Company
Are you considering starting a new business or forming a new LLC or incorporating in the near future? If so, you should really consider getting it done before the end of 2023. The Federal Corporate Transparency Act (“CTA”) is here, and it carries both civil and even criminal penalties for non-compliance. https://youtu.be/o4X8gYOCYdI Introduction, Caveat Stuff In this article, I’m going to give you a super high-altitude overview of the CTA and why I think it’s important to at least consider forming your new business, corporation, LLC or other legal entity as soon as possible before January 1, 2024. As always, this article is strictly for entertainment and educational purposes only and is NOT legal advice. Always consult with your own lawyer to discuss your given facts and legal situation. This…
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23Feb 2022 by bhandlaw
Yes, Your Startup Needs to Have Its Own Insurance. Here’s Why.

Yes, Your Startup Needs to Have Its Own Insurance. Here’s Why.

Business Formation, Corporations, Insurance, Limited Liability Company
Rarely a month goes by that a new founder or business owner I’m meeting with asks me some version of the following: “But we already formed a corporation (or LLC), why do we need liability insurance?” or “Aren’t my personal assets protected as it is [by the legal formation of the company]?” In this blog post, I’ll try an answer those questions, explain the specific types of insurance that a new startup should consider, and how to get started. Doesn't legal formation of my business protect my personal assets? Well, yes and no. First off, let me be absolutely clear-- operating any business under a validly formed legal entity is one of the first things you should be doing as an entrepreneur who’s about to actually market and sell goods…
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29May 2019 by bhandlaw
My Foreign Company’s Name Conflicts with An Existing Arizona One. Now What?

My Foreign Company’s Name Conflicts with An Existing Arizona One. Now What?

Business Formation, Corporations, Entity Formation, Foreign LLC, Limited Liability Company
Our law firm's startup clients are often formed as a limited liability company (LLC) (or for-profit corporation) in another state but have either relocated to, or now conduct their operations in, Arizona. In an earlier post, I discussed the requirement of registering your foreign entity with the Arizona Corporation Commission if you were initially formed in another jurisdiction but are nonetheless deemed to be "transacting business" here in Arizona. However, there are times when the name of your foreign-chartered entity also happens to be the same as an existing trade name or entity already registered here in Arizona. Adoption of A Fictitious Name In this situation, as part of your application you will have to have your foreign entity adopt a fictitious name (also known as a "d/b/a" or "assumed"…
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15May 2019 by bhandlaw
Is Your LLC Ready for the New Arizona LLC Act?

Is Your LLC Ready for the New Arizona LLC Act?

Business Formation, Entity Formation, Limited Liability Company
On September 1, 2020, Arizona's adoption of the Uniform Revised Limited Liability Company Act takes full effect in the form of the "Arizona Limited Liability Company Act" (ALLCA), which was signed into law by Governor Ducey last year. The Arizona Limited Liability Company Act ALLCA repeals Arizona's previous Limited Liability Company Act (in place since 1992) and introduces a number of default provisions that, if you and your fellow LLC members do not have a written operating agreement in place, could alter the way your LLC is managed and operates. There are two important dates current and potential LLC members should keep in mind for ALLCA: As of September 1, 2019, all LLCs formed in Arizona on or after that date must be compliant with ALLCA.As of September 1, 2020,…
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27Nov 2018 by bhandlaw
Is Your Foreign LLC Qualified to Do Business in AZ?

Is Your Foreign LLC Qualified to Do Business in AZ?

Business Formation, Foreign LLC, Limited Liability Company, registration to transact business
I frequently see startups who've organized as limited liability companies that operate (or at least have an office) here in Arizona but (for a various of reasons) opted to initially form in another state, such as Delaware or Nevada. Many of these LLC owners or partners don't realize that having formed in one state does not automatically mean that it can conduct business any old way in the other 49--- including Arizona.  This misconception can be a costly one. "Foreign" vs. Domestic LLCs in Arizona The Arizona Limited Liability Company Act (Arizona Revised Statutes, Title 29, Chapter 7) (the "Act") specifically requires a foreign LLC to obtain a certificate of registration "before transacting business" in Arizona (A.R.S. 29-3902(A)) [formerly §29-802(A)]).   In other words, here in Arizona anyway, every foreign (i.e., one formed…
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