Gerald Ehrlich
Spencer Fane LLP
Board-Certified Specialist: Tax Law
Phoenix, Arizona • Serving Maricopa County
About Gerald Ehrlich
After graduating from Rutgers University School of Law, I practiced law in a small firm in New Jersey for 8 months prior to being commissioned in the United States Army Judge Advocate General’s Corps. While serving on active duty in the Washington D.C., area, I obtained my LLM in Tax Law from Georgetown University.
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Education
- Law School: Rutgers
Common questions about Business Law in Arizona
Answered by Arizona Attorney Search Network
What's the difference between an LLC and a corporation in Arizona?
An LLC under ARS Title 29 (Arizona Limited Liability Company Act) offers liability protection with pass-through tax treatment by default and minimal corporate formalities. A corporation under ARS Title 10 has shareholders, directors, and officers, requires annual meetings and minutes, and is taxed as a separate entity (C-corp) unless an S-election is made. LLCs are generally preferred for small businesses; corporations are preferred when raising venture capital.
How do I form an LLC in Arizona?
File Articles of Organization with the Arizona Corporation Commission under ARS § 29-3201, designate a statutory agent (ARS § 29-3115), and adopt an operating agreement. Arizona does not require LLCs to publish notice of formation in most counties as of 2017, though Maricopa and Pima exemptions remain. Filing fees are modest, and Arizona does not require an annual report or fee for LLCs.
What is an operating agreement?
An operating agreement is the LLC's internal governance document, addressing membership interests, capital contributions, profit/loss allocation, voting rights, manager authority, and exit terms. Arizona law (ARS § 29-3105) recognizes operating agreements as the primary source of LLC governance, with ARS Title 29 supplying default rules where the agreement is silent. Single-member LLCs benefit from operating agreements too, especially for clarifying corporate veil.
Q&As answered by Gerald Ehrlich
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Office Location
Spencer Fane LLP
2415 E CAMELBACK RD STE 600
Phoenix, AZ 85016
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