In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
On Tuesday, December 3, 2024, in the case of Texas Top Cop Shop, Inc., et al. v. Garland, et al., No. 4:24-cv-00478 (E.D. Tex.), the U.S. District Court for the Eastern District of Texas, Sherman Division, issued an order granting a nationwide preliminary injunction. Texas Top Cop Shop is only one of several
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Arizona Increases Its Minimum Wage to $14.70/Hour in 2025
The U.S. Bureau of Labor Statistics published its Consumer Price Index report on September 11, 2024, that says Arizona’s mimimum wage effective January 1, 2025 will be $14.70 an hour. The 2024 minimum wage is $14.35 an hour. The 35-cent minimum wage increase is directly tied to the latest CPI report, which showed a 2.5% increase in inflation from August 2023 to August 2024.
The post Arizona Increases Its Minimum Wage to $14.70/Hour in 2025 appeared first on Arizona LLC Law.
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What Is an LLC Distribution?
A distribution from a limited liability company (LLC) is a payment of cash or property made by an LLC to the LLC’s owners, also known as members. Although state law sets forth certain default rules, LLC members can specify in the LLC’s operating agreement when and how profits are allocated, distributed, and taxed.
Distribution Method and Timing
Under the default rules provided by most state LLC statutes, an LLC is not required to make any distributions to members before they withdraw from the LLC or it is dissolved. It is prudent for LLC members to create an operating agreement that
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Do I Put My LLC’s Name on Line 1 of an IRS Form W-9
Question: I am completing IRS Form W-9, Request for Taxpayer Identification Number and Certification. Line 1 says “Name of entity/individual.” I am completing the W-9 for my single-member LLC. What do I put in line 1?
Answer: For a sole proprietor or disregarded entity, enter the owner’s name on line 1, and enter the business/disregarded entity’s name on line 2.
The post Do I Put My LLC’s Name on Line 1 of an IRS Form W-9 appeared first on Arizona LLC Law.
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Arizona Corporation Commission is Making a New Website
The following is the text of an email I got from Tanya M. Gibson, Director, Corporations Division of the Arizona Corporation Commission on May 1, 2024:
Hi, All! It has been a while since I have reached out. I hope everyone is well and staying cool!
I have good news to share! We have secured a vendor for our new filing system! Yes, we are replacing eCorp. We are excited because the new system is technologically advanced and offers a great deal of features and functionality that will enhance the customer experience, streamline filings, and better protect against fraudulent filings.
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Don’t Pay a Non-Lawyer More than an Arizona LLC Attorney to Form an Arizona LLC
Question: People frequently ask me why they should hire me, Richard Keyt, an Arizona LLC attorney who has formed 9,400+ AZ LLCs, to form their Arizona limited liability company instead of a non-law firm company I’ll call the “Nonlawyer LLC.”
Answer: People should hire me to form their AZ LLC for the following reasons:
- I Don’t Require You to be Legally Bound to 56 Pages of Legal Contracts: Unlike Nonlawyer LLC I don’t require people to enter into any contracts to hire me to form an LLC. Nonlawyer LLC requires its LLC customers to agree to 56 pages of
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Federal District Court Rules Corporate Transparency Act Unconstitutional
The following is a March 4, 2024, news item on FinCEN’s website:
On March 1, 2024, in the case of National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.), a federal district court in the Northern District of Alabama, Northeastern Division, entered a final declaratory judgment, concluding that the Corporate Transparency Act exceeds the Constitution’s limits on Congress’s power and enjoining the Department of the Treasury and FinCEN from enforcing the Corporate Transparency Act against the plaintiffs. FinCEN will comply with the court’s order for as long as it remains in effect. As a result, the government is not currently
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Loan Can’t be Called if Land Is Transferred to an LLC
Question: Can my lender call my loan that encumbers my land if I transfer the land to an LLC I own?
Answer: Probably not. The Federal National Mortgage Association, aka Fannie Mae, has something called Servicing Freddie Mac Mortgages Series 8000. Section 8406.4(b) Additional permitted Transfers of Ownership Effective 10/20/2021 states:
“Permitted Transfers of Ownership subject to conditions. In situations where all of the following conditions are met, Freddie Mac will permit a Transfer of Ownership of the Mortgaged Premises:
- At least 12 months have passed since the Origination Date and
- The transfer is to a limited liability company (LLC) or limited partnership (LP), provided
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Did Your File My LLC as a Partnership?
Question: Did you file my LLC as partnership? My tax accountant needs this information and a copy of that document.
Answer: You need to get a new accountant who understands LLCs and federal income tax law. It is not possible in any state to file an entity (corp or LLC) as a partnership for federal income tax purposes. The IRS’ default tax method for a multi-member LLC like your two member LLC is partnership. No need to file any papers with the IRS other than the LLC’s IRS form 1065, which is its partnership tax return. If the LLC wants
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Another Wells Fargo Idiot Banker
President of an Arizona nonprofit corporation I formed recently called while at the bank trying to open a bank account for the corporation. The corporation filed IRS form 1023EZ and was a 501(c)(3) tax-exempt charity. The banker said her bank could not open a bank account until the corporation could prove its “tax classification.” I asked her what she meant by “tax classification” and she said it means is the corporation a C corporation or an S corporation? I said neither because it is a 501(c)(3) tax-exempt charity. She insisted the corporation had to be a C or an S
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Should I Get a DBA for My Arizona LLC?
Question: If my Arizona LLC is called Widget World, LLC and I want to use Best Widgets in my LLC’s advertisements do i need to file a DBA with Arizona?
Answer: DBAs in AZ are called trade names. If you use text that is not the full name of the LLC you should register that text as a trade name with the Arizona Secretary of State. Getting a trade name or dba from the Arizona Secretary of State is relatively easy to do. It’s a simple online application and the fee is $10. To learn how to get the trade name
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Well Fargo Bank Demands LLC Change its Principal Address
Question: I received a letter from Wells Fargo bank that said my new LLC’s principal address on file with the Arizona Corporation Commission cannot be 24 W. Camelback Rd, #467, Phoenix, AZ 85013. That address is your address that our LLC uses only for Arizona Corporation Commission purposes. Do I have to amend my LLC’s Articles of Organization to change the LLC’s principal address?
Answer: The 24 W. Camelback Rd, #467, Phoenix, AZ 85013 is a UPS mail box. You are dealing with an idiot banker who is telling you that your LLC cannot have its principal address be a
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Will My Lender Call My Loan If I Convey Land to My LLC?
Question: I own a rental home that I want to put into an LLC for asset protection, but it is subject to a deed of trust that has a due on sale clause in it. If I form an LLC and convey the home to the LLC will the lender exercise the due on sale clause and demand I pay off the loan?
Answer: A due on sale clause is text in the deed of trust that says that the lender can demand payment of the balance owed on the loan if the borrower transfers ownership of the land. This
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Chase Bank Refused to Open LLC Account Because It Could Not Verify LLC’s Phone Number
Question: What is a verified LLC phone number? I tried to open a bank account for my LLC at Chase Bank. The bank clerk said that he could not open a bank account for the LLC unless he could “verify” the LLC’s phone number. My client who is the sole member and manager of the LLC gave the banker all of his phone numbers. The banker was unable to verify any of the phone numbers and declined to open a bank account for the LLC.
Answer: I don’t have a clue what a verified phone number is. In forming 8,700+
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Idiot Banker Won’t Open a Bank Account for an LLC Owned by a Trust
Question: You setup an LLC for me that is owned by a revocable living trust you created. I gave the bank a copy of the Articles of Organization, the Operating Agreement, the Trust Agreement and the Certification of Trust, but the bank won’t open an account for the LLC unless you send the bank a letter that says that I am the trustee of the trust that is the member of the LLC?
Answer: You are dealing with an idiot banker because he/she wants somebody who is not an owner of the LLC or affiliated with the LLC, i.e., me, to sign
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Arizona’s Pass Through Entity Tax: What You Need to Know
As a business owner in Arizona, you may have heard about the Pass Through Entity (PTE) tax codified in Arizona Revised Statutes Section 43-1014. This tax can have significant implications for your business and its owners. In this article, we’ll take a deep dive into what the PTE tax is, how it works, and what you need to know to ensure compliance.
What is Arizona’s Pass Through Entity Tax?
The PTE tax was introduced in Arizona in 2019 as part of the state’s efforts to conform to the federal Tax Cuts and Jobs Act (TCJA) of 2017. Essentially, the
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