Death of a Single Member (Part 3 of 3):  Transferring LLC Interest To Someone other than Surviving Spouse

Death of a Single Member (Part 3 of 3): Transferring LLC Interest To Someone other than Surviving Spouse

Limited Liability Company, Single Member LLC
This is the final Part of a three part series on the legal issues surrounding the death of a single member of an LLC in Arizona. Most single member LLC owners who are married are usually agreeable to having their spouse inherit their LLC ownership interest in case the member unexpectedly dies.  However, every so often our Phoenix business law firm sees a situation where a relative or outside third-party has deep reservations about the surviving spouse taking over the LLC or has a vested interest in not being in business with the surviving spouse. In Part 1, we were introduced to “SM”, a married owner of a single member LLC operating a growing and highly profitable business here in Arizona.  Like most young business owners I see, SM had…
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Death of a Single Member (Part 2):  Can Deceased’s LLC Ownership be Transferred by Contract?

Death of a Single Member (Part 2): Can Deceased’s LLC Ownership be Transferred by Contract?

Limited Liability Company, Single Member LLC
This is Part 2 of a three part series on key legal issues surrounding the unanticipated death of a member of a single member LLC in Arizona. Most single member LLC owners who are married are usually agreeable to having their spouse inherit their LLC ownership interest in case the member unexpectedly dies.  However, every so often our Phoenix business law firm sees a situation where a relative or outside third-party has deep reservations about the surviving spouse taking over the LLC or has a vested interest in not being in business with the surviving spouse. In Part 1, we were introduced to “SM”, a married owner of a single member LLC operating a growing and highly profitable business here in Arizona.  Like most young business owners I see, SM…
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Death of a Single Member: What Happens when An LLC Owner Dies in Arizona?

Death of a Single Member: What Happens when An LLC Owner Dies in Arizona?

Limited Liability Company, Single Member LLC
This is Part 1 of a three part series on key legal issues surrounding the unanticipated death of a member of a single member LLC in Arizona. Most single member LLC owners who are married are usually agreeable to having their spouse inherit their LLC ownership interest in case that member unexpectedly dies. However, every so often our Phoenix business law firm sees a situation where a relative or outside third-party has strong concerns about the surviving spouse taking over the LLC or otherwise has a strong preference in not being forced into doing business with the surviving spouse. Take a recent situation our Arizona emerging business law firm was asked to work on.   The single member LLC owner (we'll call him "SM") of a growing and highly profitable business…
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How Many Members Are Needed to Form an LLC in Arizona?

How Many Members Are Needed to Form an LLC in Arizona?

Business Formation, Entity Formation, Limited Liability Company, Single Member LLC, Start-Up
Is there a minimum number of members required to form an Arizona LLC (limited liability company)?  As a Phoenix startup and small business attorney, this is a question I am sometimes asked by entrepreneurs and expectant business owners who are new to the State and looking to form their Arizona LLC. Although most states used to require a minimum of two members to form an LLC, now all of them and the District of Columbia allow "single member" LLCs to be created. Arizona allows formation of single-member LLCs Arizona LLCs are governed by the Arizona Limited Liability Company Act (Arizona Revised Statutes, Title 29, Chapter 4).  Under A.R.S. §29-601(15), a "Member" is defined as "a person who is admitted as a member in a limited liability company pursuant to this…
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