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Richard Keyt

Latest from LLC Law Blog

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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Continue Reading Federal District Court Rules Corporate Transparency Act Unconstitutional

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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Continue Reading Loan Can’t be Called if Land Is Transferred to an LLC

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…
Continue Reading Did Your File My LLC as a Partnership?

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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Continue Reading Another Wells Fargo Idiot Banker

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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Continue Reading Should I Get a DBA for My Arizona 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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Continue Reading Will My Lender Call My Loan If I Convey Land to My LLC?

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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Continue Reading Idiot Banker Won’t Open a Bank Account for an LLC Owned by a Trust

Question:  I am interested in more information on Arizona Revised Statutes Section 44-1844.A.  I am want to open a new business and I’m looking for investors. I want information on how to do it without affecting the Arizona Securities Division.
Answer:  If you will offer interests in your LLC to investors in exchange for them paying money or value assets you are offering and selling a security and must comply with federal and state securities laws.  If you fail to comply with federal and state securities laws and an investor loses money federal and state securities laws say the

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Continue Reading I Want Investors to Invest in My LLC

Question:  You have formed most, if not all, of my LLCs over the years and I am grateful for the efficiency, cost and professionalism.  I do have two quick questions.
  • Is it best to have rentals each in their own LLC or is okay to have them all under one?
  • What is best practice for banking? Is it best to have a separate account for each for the sake of liability?

Answer:  The reason you want multiple LLCs to operate multiple businesses or own multiple real estate properties is because you don’t want all of your eggs in one basket. 

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Continue Reading How Many LLCs Should I Form?

On January 29, 1972, 50 years ago I married the love of my life.  Finding and marrying Carol was the best thing that ever happened to me.  I first saw Carol at a Phi Gamma Delta fraternity party at Penn State in the winter of 1967.  I was a pledge and she had been invited to the frat party because her sister Ellen was pinned to one of my frat brothers.  It wasn’t love at first sight, but I do remember I thought she was the prettiest girl I had ever seen.
We were both freshmen that winter.  Carol dated…
Continue Reading My 50th Wedding Anniversary

Question: People frequently ask me why they should hire me, Richard Keyt, an Arizona LLC attorney who has formed 8,800+ AZ LLCs, to form their Arizona limited liability company instead of LegalZoom?
Answer: People should hire me to form their AZ LLC instead of LegalZoom for the following reasons:
  • I’m $31 Cheaper than LegalZoom for Similar Services: As of 5/14/23 my $797 Silver LLC package is $34 cheaper than the $831 LegalZoom charges for its premium LLC package that provides services similar to our Silver LLC package.  LegalZoom’s statutory agent (aka Registered Agent) Service is $249/year.  Compare that to our

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Continue Reading Don’t Pay LegalZoom More than an Arizona LLC Attorney to Form an Arizona LLC

Question: People frequently ask me why they should hire me, Richard Keyt, to form their Arizona limited liability company instead of LegalZoom?
Answer: People should hire me to form their AZ LLC instead of LegalZoom for the following major reasons:

  • I’m Cheaper than LegalZoom: As of 5/9/21 my $597 Silver LLC package is $86 cheaper than LegalZoom’s express gold LLC package with similar services that costs $842.

LegalZoom prices

  • I’ll Form Your LLC a Minimum of Ten Days Before LegalZoom:  I form new LLCs and get them approved by the Arizona Corporation Commission the same day you approve your LLC formation

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Continue Reading Should You Pay LegalZoom More than an Arizona LLC Attorney to Form an Arizona LLC?

I don’t usually insert reviews I get into a blog post, but yesterday I got a very nice review I want to share with you.  Here is the review:

If you are ready to start your LLC, this is the office you need to call. The process is so streamlined, the people are so knowledgeable & kind, & they work INCREDIBLY fast. I was absolutely shocked at how quickly things were done & could not be more pleased. The reasonable fees up front are well worth the potential liability avoided in the future. The items completed for my business…
Continue Reading We Got Another Nice Review

The IRS’ online EIN wizard that issues employer identification numbers after a 5 – 10 minute data entry session will be down for maintenance.  This service will be unavailable from approximately 5 p.m. Eastern time on Wednesday, December 23, 2020, until approximately 7 a.m. Eastern time on Monday, January 4, 2021, due to planned maintenance.
The post IRS’ Online EIN Wizard Down for Maintenance Until 1/4/21 appeared first on Arizona LLC Law.
Continue Reading IRS’ Online EIN Wizard Down for Maintenance Until 1/4/21

If a member of an Arizona LLC dies and the member did not take action to protect the member’s loved ones bad things will happen.  The failure to plan creates the following problems:
1. The membership interest of the deceased member may not be inherited by the person or people the deceased member would want to inherit the membership interest.
2. A person who inherits the membership interest of a deceased member of a multi-member LLC will not be a member of the LLC.  Instead, the heir will acquire only an economic interest in the LLC, which means the heir(s)…
Continue Reading Bad Consequences of the Death of a Member of an LLC