Dear M & M:
What age do I need to be to form a limited liability company (LLC) in Arizona? Can a minor or someone under 18 do this?
As always, when thinking about forming a business entity or asking specific questions about the formation of a business entity, one should seek advice from an attorney knowledgeable in that area. Paul Melo, a local attorney and partner with the law firm of Williams Melo, PLC located in Sierra Vista, advises, “While the rules governing formation of a LLC do not specifically prevent minors from filing Articles of Organization and forming an LLC, the minor should keep in mind that there are other factors that may impact the utility of the LLC.
For example, after formation of the LLC, we recommend that our clients also establish an Operating Agreement, which is a contract governing the operation of the company and the rights, responsibilities and obligations of the members. Absent exclusion, the minor’s legal ability (or competency) to enter into the Operating Agreement may be challenged, simply because of age of majority laws.
If an Operating Agreement is determined invalid by a court, the purpose behind the formation of the LLC may likewise be defeated. My advice is to consider what the business objectives and goals of the minor are, and determine if there is a better way to achieve those goals and objectives without the potential risks that may arise due to the minor’s age.”
One can see the importance of contacting a qualified attorney when making considerations like forming a business. You want to be right and do the right thing to insure you are compliant with rules and regulations entering into an agreement or forming a legal entity for your organization.
To ask your questions: Call the Small Business Development Center(SBDC) at Cochise College (520)-515-5478 or email firstname.lastname@example.org or contact the Sierra Vista Economic Development Foundation(EDF) at 520-458-6948 or email email@example.com