Although Arizona LLC law does not require that members or managers of an LLC hold meetings, as an attorney who has formed 8,400+ LLCs since 1992 I recommend that the members and managers always hold a special meeting and vote to take or not take action whenever the company is considering an important action such as buying, selling or leasing real estate, adding a new member or entering into an important contract.
I also recommend all Arizona LLCs hold annual meetings of members and manager. Even single member and husband and wife owned LLCs should hold annual meetings.
The reason you form an LLC is to protect the members from liabilities that arise from the activities of the LLC. You must operate your LLC in a way that does not give a court grounds to “pierce the veil” and hold the members liable for the debts of the LLC. LLCs that hold annual meetings and document the meetings with minutes are looked on favorably by courts because it shows the owners are treating the LLC like a business rather than a hobby.
If your LLC has multiple members (other than just a husband and wife) another very important reason to hold annual meetings is so all the members can be informed of company actions and vote on important matters.
Purchase Our Do-It-Yourself Meeting Minutes & Resolutions
I’ve made it very easy for you to document actions approved by members and managers. Just purchase my editable Word meeting minutes and resolutions that you can modify whenever needed to document meetings of your LLC’s members and managers.
You can also purchase a document called Action by Consent by which the members and managers can adopt resolutions approving company actions in lieu of actually holding a meeting. Each document comes with 16 resolutions for the most common types of actions voted on by members and managers.
Go to the KEYTLaw form store to purchase your do-it-yourself minutes and resolutions.