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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
Continue Reading Well Fargo Bank Demands LLC Change its Principal Address

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+
Continue Reading Chase Bank Refused to Open LLC Account Because It Could Not Verify LLC’s Phone Number

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
Continue Reading Arizona’s Pass Through Entity Tax: What You Need to Know

Question: People frequently ask me why they should hire me, Richard Keyt, an Arizona LLC attorney who has formed 8,200+ 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 $245 Cheaper than LegalZoom for Similar Services: As of 1/15/22 my $597 Silver LLC package is $245 cheaper than the $842 LegalZoom charges for its express gold LLC package that provides services similar to our Silver LLC package.  LegalZoom’s statutory agent (aka Registered Agent) Service is $249/year after the

Continue Reading Don’t Pay LegalZoom $245 More than an Arizona LLC Attorney to Form an Arizona LLC?

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

The Internal Revenue Service has an online wizard that allows people to apply for and receive an employer identification number (EIN) for a company in a 5 – 10 minute data entry session. Companies need an EIN to open a bank account and file federal tax returns.  See our EIN online wizard video that shows how to complete the online application.
Usually the online EIN wizard works great and people can quickly get an EIN for a newly formed company.  Unfortunately the online wizard sometimes rejects an EIN application because of “Reference Number 101,” which usually means the company’s name
Continue Reading IRS Employer ID Number (EIN) Warning for New LLCs & Corporations