On January 1, 2022, the following new Arizona laws became effective:

• The minimum wage is $12.80 per hour, which is an increase from $12.15 per hour.

• Instead of having four state income tax brackets, Arizona income tax changed to two tax brackets.  The tax rates are 2.55 percent and 2.98 percent.  Single people and married people filing separately pay the lower rate if their taxable income is $27,272 or less or the higher rate if their taxable income exceeds $27,272.  Married people filing jointly pay the lower rate if their income is less than $54,544 or the higher rate if

…
Continue Reading New Arizona Laws Effective 1/1/22

Calling it a key security issue, the Internal Revenue Service on July 31, 2021, urged entities with Employer Identification Numbers (EINs) to update their applications if there has been a change in the responsible party or contact information.
IRS regulations require EIN holders to update responsible party information within 60 days of any change by filing Form 8822-B, Change of Address or Responsible Party – Business. It is critical that the IRS have accurate information in cases of identity theft or other fraud issues related to EINs or business accounts.
The data around the “responsible parties” for business-type entities…
Continue Reading Businesses with an EIN Must Notify IRS of Changes with Respect to Responsible Parties

On June 29, 2021, the Arizona Corporation Commission added new features to its online service.  These new features are called “owners” and “authorized filers.”

• Owner.  The owner of an account for an LLC, PLLC or corporation created on the ACC’s online website is the person whose user name and password was used to login to the ACC’s website and who then formed the LLC, PLLC or corporation.  Only companies created online after May 21, 2018, have owners.  Companies created by filing paper forms do not have owners.  ACC staff can add an owner to a company if the company does

…
Continue Reading Arizona Corporation Commission Creates Authorized Filers

On January 1, 2021, a new federal law called the Corporate Transparency Act (CTA) became law.  The CTA requires almost all LLCs,  PLLCs, for profit corporations, limited partnerships and other entities created by filing a document with a state to file a report with the Financial Crimes Enforcement Network (“FinCen”) of the U.S. Treasury that discloses information about the entity, its beneficial owners and the person who filed the entity’s formation document with its formation state.
Warning: If you are an owner of a U.S. company you need to read the article on our Corporate Transparency Act website to learn…
Continue Reading Your Company Must File a Report with FinCen or Be Fined $500/Day

If a member of an Arizona LLC dies and the member did not take action to protect the member’s loved one(s) bad things will happen.  The failure to plan for death 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…
Continue Reading 3 Ways Your Loved One Will Be Harmed If You Own an LLC & Do Not Prepare for Death