LLC Attorney Richard Keyt vs. Document Preparers

Why You Should Hire Arizona LLC Lawyer Richard Keyt to Form Your Arizona LLC Instead of an Uninsured Person or a Website that Doesn’t Tell You Who Will Work on Your LLC or Disclose Their Education & Experience Forming AZ LLCs

See the 7 Tests Below That Quickly Alert You to Problem Doc Preparers

AZ LLC Attorney Richard Keyt has formed 9,300+ Arizona LLCs.

Sometimes people ask me why they should hire me to form their Arizona limited liability company instead of a document preparer, a para-legal or an internet website. Hiring me is a no brainer when you compare my LLC formation services to that of my non-lawyer, nonlegal trained less experienced uninsured competition.

Primary Reason People Hire Richard Keyt to Form their LLC

The primary reason 9,300+ people have hired me to form their Arizona LLC is because I provide an excellent comprehensive LLC formation package.  People love my LLC formation services.  See my 373 five star Goolge & Facebook reviews.

Arizona LLC attorney Richard Keyt (practicing business law in Arizona since 1980) offers three LLC formation packages and prices: $497 (Bronze package), $797 (Silver package) & $1,297 (Gold package).  For a detailed explanation of the LLC formation services we provide for each of the three packages see the “contents of our Bronze, Silver & Gold LLC formation packages.”

How to Tell if a Document Preparer Has a Clue About Arizona LLC Law?

If a document preparer flunks any of the following tests, you probably should not hire the unlicensed, uninsured person/firm/website to form your Arizona LLC.

Test # 1: Does the document preparer accurately state the costs to form an Arizona LLC? The Arizona Corporation Commission has two filing fees for new LLCs: (i) $50 basic fee, and (ii) $85 for expedited filing. Beware of document preparers who misrepresent the amount of the Arizona Corporation Commission filing fee or that will charge to publish in a newspaper when the LLC’s place of business in in Maricopa or Pima County because publication is not required when the LLC’s place of business is in either of these counties.

Test #2: Does the document preparer refer to something called a “resident agent”? If so, the document preparer is not familiar with Arizona LLC law because the term “resident agent” does not apply to an Arizona LLC. Arizona law does require all Arizona LLCs to have a statutory agent, rather than a resident agent, which is a term used in states other than Arizona. If the document preparer does not know this basic fact about Arizona LLC’s, you should wonder what substantive facts about Arizona law is the doc preparer oblivious to.

Test #3: Does the document preparer misrepresent the length of time it takes to form an Arizona LLC? Beware the doc preparer who claims it takes a long time to form an Arizona LLC, especially one who seeks additional money to expedite the process. An Arizona LLC is born and can begin doing business the day the Articles of Organization are filed with the Arizona Corporation Commission unless the Articles are rejected by the Arizona Corporation Commission.  The ACC’s review of the Articles is varies depending on its work load.  For the ACC’s current review times see its online processing times report.

P.S.  I form new LLCs and get them approved by the Arizona Corporation Commission the same day I am hired and paid.

Test #4: Does the document preparer give you something called a “seal”? The seal embosser is a two piece metal device stored inside a pouch. Company seals emboss (raise the text) the company name, state, and date of formation on a piece of paper when you insert the paper into the jaws of the seal and then smash the two handles together. Whoopee!! A total waste of money. A seal is not required by Arizona law and has no legal significance. Why doesn’t the doc preparer know a seal for an Arizona LLC is worthless? A seal is an example of fluff doc preparers offer to make uninformed prospects hire the doc preparer. They could also offer to give each LLC a pillow that has the LLC’s motto crocheted by Aunt Bessie in Latin. Arizona LLC law does not require an AZ LLC to have a Latin motto, but the pillow with motto could be another dandy item of fluff a doc preparer could add to their list of worthless bloat (including simple legal forms on a disk you’ll never use) intended to convince a gullible prospect to hire the doc preparer for a “bargain” price because the purchaser will get a lot of neat, but useless bloat.

Test #5: If the document preparer is a person, is the person a certified legal document preparer licensed by the Arizona Supreme Court? Arizona law requires non-lawyers who prepare legal documents for Arizona residents to be licensed by the Arizona Supreme Court. Check with the Arizona Supreme Court’s list of certified legal document preparers to determine if the person is complying with Arizona law.

Test #6: Is the document preparer an entity formed in Arizona? Check the records of the Arizona Corporation Commission to determine if the document prepare is an Arizona entity. If it is, then the entity must be licensed by the Arizona Supreme Court as a certified legal document preparer. Check with the Arizona Supreme Court’s list of certified legal document preparers to determine if the entity is complying with Arizona law.

Test #7: If the document preparer is an entity formed outside Arizona and it does business in Arizona, has it registered to do business in Arizona? Arizona Revised Statutes Section 29-3902 requires that an entity formed outside of Arizona that does business in Arizona must register with the Arizona Corporation Commission to do business in Arizona. Check the ACC’s records to see if an entity formed outside Arizona is registered to do business in AZ. Out of state document preparers that prepare legal documents for Arizona residents must also be licensed by the Arizona Supreme Court as a certified legal document preparer. Check with the Arizona Supreme Court’s list of certified legal document preparers to determine if the entity formed outside Arizona is complying with Arizona law.

Beware of Doc Prep Mills that Claim to Form LLCs in All 50 States

You should only hire somebody to form your Arizona LLC who is an expert on Arizona LLC law and who has a lot of experience forming Arizona LLCs. The fact a person forms LLCs in states other than Arizona probably means that person doesn’t have the depth of knowledge needed to be an expert on Arizona LLC law. There is just too much to know for a person to be an expert on forming entities in all fifty states. There is much more to providing good LLC formation service than simply filing a two page fill in the blanks form with the Arizona Corporation Commission. See my article called “The Two Phases in the Life of an LLC.”

An excellent way to determine the experience of a document preparer is by the number of Arizona LLCs the document preparer has formed. Maybe you have seen production numbers, but I have never seen a website selling LLCs that discloses how many Arizona LLCs it has formed. I wonder why? I suspect that if a document preparer does not tell you on its website or in its advertising how many Arizona LLCs it has formed, it is because the document preparer has not formed very many. I am very proud of the fact that I have formed 9,300+ Arizona LLCs since 2001.

If you do call a website about forming your Arizona LLC, it is unlikely that you will know who you are talking to or know anything about the background, knowledge or experience that voice on the phone. I personally would not entrust something as important as the formation of my Arizona LLC to a phantom whose background and experience is unknown.

Click here now to hire Arizona LLC attorney Richard Keyt to form your new Arizona LLC.

About Price

For some people, however, price is the prime consideration. Although the $797 (this includes the $85 ACC expedited filing fee) I charge for the Silver package is substantially lower than the fee most Arizona attorneys charge, it may be more than what an uninsured document preparer charges. If you do not want to pay an experienced attorney who carries malpractice insurance to form your LLC, I suggest you: (1) read my article called “How to Form an Arizona Limited Liability Company” for a complete explanation, (2) follow my instructions in the article, (3) fill out the ACC’s fill-in the blanks Articles of Organization and the three other documents that go with this form, (4) file the Articles with the ACC to form the LLC yourself, and (5) save the money you might pay a document preparer for doing the same thing.

If you still want to waste your money with a document preparer, I recommend you review my credentials in the following table and ask your document preparer for his or her credentials and compare. You should also test your document preparer’s knowledge of Arizona LLCs by asking the preparer some of the questions found in my Document Preparer LLC Knowledge Test found below.

A Document Preparer Disagrees with Richard Keyt

A document preparer turned lawyer sent me an email message in which he disagreed with my premise that people should not hire document preparers to form LLCs. The man’s message actually proves my point that you should not use a document preparer to prepare something as important as your LLC. See the original message with my grammar corrections and comments.

Compare Your Document Preparer’s Credentials & Experience to Arizona LLC Attorney Richard Keyt

Document Preparer Arizona LLC Knowledge Test

Before you hire anybody to form your Arizona LLC and prepare its Operating Agreement, you should test his, her or its knowledge of Arizona LLC law, federal income tax law and U.S. bankruptcy law. Richard Keyt can answer all of the following questions. Can your document preparer do the same?

1. What records does Arizona’s LLC law require the LLC to keep?
2. What LLC information does Arizona LLC law require the LLC to give every member?
3. What are the requirements of Arizona LLC law to become a member of the LLC at the time of formation and after the LLC is formed?
4. What events cause the automatic expulsion of a member under Arizona LLC law?
5. What are the four possible ways an LLC may be taxed under the Internal Revenue Code?
6. Given that an LLC can be taxed one of four ways, will your document preparer draft your Operating Agreement to correspond to how your LLC will be taxed? Hint: If your document preparer does not ask you how your LLC will be taxed, how can he or she draft an Operating Agreement that complies with your LLC’s method of taxation?
7. Can a multi-member LLC owned by a husband and wife be treated as a disregarded entity for federal income tax purposes?
8. What is the purpose of an IRS form 8832?
9. What is an IRS form 2553 and what is the deadline to file this form with the IRS?
10. What types of owners can prevent an LLC from being taxed as an S corporation?
11. Will your LLC need to file an IRS form 8832 and/or an IRS form 2553?
12. What is the significance of the Gregory Leo Ehmann U.S. Bankruptcy Court (Arizona) case and what can be done to avoid its result?  Does the doc preparer’s Operating Agreement contain anti-Ehmann language? All of my Operating Agreements contain provisions intended to avoid the Ehmann problem.
13. What is the significance of the Ashley Albright U.S. Bankruptcy Court (Colorado) case and what can be done to avoid its result? See my article called “Warning: Single Member LLCs Lack Asset Protection” for more on this important topic.
14. What is a springing member and why and when should an Operating Agreement  provide for a springing member?
15. What is an economic member and why and when should an Operating Agreement  provide for an economic member?
16. How does Arizona community property law affect ownership of an Arizona LLC?
17. How will the members document the way they hold title to their membership interests? Members of an Arizona LLC hold title one of the following ways: (i) community property, (ii) community property with right of survivorship, (iii) separate property, (iv) tenants in common and (v) joint tenancy. The way a member holds title to the member’s interest in the company determines if a probate will be needed if the member dies, whether a spouse has an interest in the LLC, and if the survivor of a deceased member gets a full stepped up basis (for income tax purposes) on the death of the member.
18. How does one spouse acquire ownership of an Arizona LLC as separate property?
19. How does a married couple acquire ownership of an Arizona LLC as community property with right of survivorship so that if one spouse dies the survivor automatically acquires the interest of the deceased without going through probate?
20. Do both spouses need to sign the Operating Agreement?
21. What is the legal significance if the spouse of a married member does not sign the Operating Agreement?
22. Does Arizona LLC law require the members or managers of an Arizona LLC to hold annual meetings and document the meetings with minutes?
23. Must the Operating Agreement provide that the members will maintain capital accounts as required by Subchapter K of the Internal Revenue Code?
24. What is a capital account?
25. What is a deficit capital account and how is it created?
26. Does the Operating Agreement require members to restore a deficit capital account? Should it?
27. What is a guaranteed payment and does your LLC have any guaranteed payments? Hint: This is not when one member guarantees payment of the LLC’s debts.
28. Does your LLC make any special allocations of profits or losses? If so, does the Operating Agreement contain the appropriate provisions for the special allocations of profits or losses?
29. What is the relationship between Internal Revenue Code Section 704(b) and substantial economic effect?
30. What is required for the allocations of profits, losses and distributions to have substantial economic effect?

Anybody who forms Arizona limited liability companies should know the answers to all of the above questions. If you take the time to ask a document preparer and many Arizona lawyers to answer the above questions, you will find that most people who form Arizona LLCs have a superficial knowledge of Arizona LLCs and are merely generating fill in the blank forms. A KEYTLaw LLC attorney plus a KEYTLaw formed LLC is a winning combination.

We Answer LLC Formation Questions for Free

If you have questions about Arizona LLCs, call Arizona LLC lawyer Richard Keyt at 480-664-7478, his son LLC attorney and former CPA Richard C. Keyt at 480-664-7472 or KEYTLaw 480-664-7846.  We do not charge for questions about Arizona limited liability companies.

Two Easy Ways to Hire Richard Keyt to Form Your Arizona LLC

We’ve made it very easy to hire Richard Keyt (9,300+LLCs formed) and KEYTLaw, LLC, to form your new Arizona LLC.  It’s a simple 5 – 10 minute process.  To hire Richard to form your new LLC select one of the following two options:

Option 1 – Telephone

Call any of the following KEYTLaw people and give your LLC and credit card information over the phone:

• Richard Keyt – 480-664-7478
• Richard’s son Richard C. Keyt – 480-664-7472
• KEYTLaw 480-664-7846

Option 2: Online – Available 24/7

• Complete our LLC Formation Questionnaire.

Call Us if You Have any Questions

Call Arizona LLC attorneys Richard C. Keyt (480-664-7472) or his father Richard Keyt (480-664-7478) if you have any questions about forming or operating an Arizona limited liability company.  They don’t charge to answer questions over the phone.