I realize I am just a small business in Sedona Arizona. I live quietly in Uptown Sedona.
Should it take 2 months to change the name of my LLC with the Arizona State ADRE and the Arizona Corporation Commission?
While Governor Doug Ducey wants to “cut red tape”:
I believed him, so when I had difficulties changing the name of my LLC, I called the Governor’s office. I was told by his office that there was nothing they could do… well, read the letter I sent the Governor. Should it take 2 months to change the name of my LLC? I couldn’t get his Chief of Staff to even listen. That’s not responsive government.
To Governor Doug Ducey
CC: Ian (sorry I don’t have the last name), Chief of Staff
From Kathy Howe, Owner/Broker how2arizona real estate LLC (hoping to become Lifestyles of Arizona LLC)
Re LLC Name Change
Yesterday I realized how frustrated the business community must be in AZ and why you, the Governor, have asked what you could do to make business flow better. The problem is that you are only part of the solution.
I am a real estate broker in AZ and I also have a real estate school. I train people to understand the law and to deal with it… if you don’t like it, you need to make an effort to change it. Governor Ducey, for that I applaud you; so, here are some of my recommendations and I’m including the letter I sent yesterday to each member of the Corporation Commission and State Legislature.
I am more than aware who does what to whom and how.
First issue: Why does the Arizona Department of Real Estate have the right to name my company?
- The name of the limited liability company complies with A.R.S. § 29-602 and 4 A.A.C. 28, Article 10, and is not likely to be misleading or confusing;
That should be a business owner’s right. The right to protect the public by the ADRE can be accomplished by the ADRE requiring the use of a DBA, IF the legal name is confusing or misleading.
Overly simple? No. Right now you have a system that is confusing and takes much time to explain or determine. A “legal name” and/or a “DBA”? The public is not protected when they have no idea what all of this means. Simplify it in statute and rule. Why have a Corporation Commission when the ADRE has the right to name my company? Redundancy.
After I submitted my original name to the ADRE (no one in ACC or the ADRE was using the name) and I was turned down, I sent off a letter requesting a reconsideration and was flatly denied again by Real Estate Commissioner Judy Lowe (who I highly respect). Since I started this in November and decided not to fight the battle at this point, I resubmitted for Lifestyles of Arizona LLC with the ADRE… did it online and had an approval in 2 days FOR FREE. And I told the Commissioner at that time that I disagreed with the ADRE having the right to name my company; but, I did agree that the ADRE should have the right to have me use a DBA in order to keep from confusing the public. She and I understand and respect each other.
Second Issue. Armed with the ADRE approval, I went online at the ACC… looked up all my pertinent LLC info, called to get the right form and to see if I could submit online (emphatically told NO), filled out the interactive form, wrote the check, and CALLED THE ACC again to be sure I had everything in the envelope before taking it to the USPS in Sedona. No one mentioned a “cover letter” which seems to be the reason the ACC says they couldn’t send me an email. To date I have not received the rejection letter by mail (they tell me they received my request on Jan 4 and sent a rejection on Jan 8…today is the 13th). I have received the rejection by email after many calls to the ACC’s Director Barfield yesterday and my submitting the form again by email directly to Director Barfield (see correspondence to the legislature and the ACC).
This AM I went on the ACC website to see what was happening. Being a squeaky wheel does help but it should never have had to happen. http://ecorp.azcc.gov/Details/Pending?corpId=L20599728. I should not have had to give up a full day, yesterday, and this AM to get what every citizen of Arizona deserves… an hour of business time spent at most. At least the ACC has posted it as pending… now let’s see how long it takes to do the rest of their paperwork. As I have stated, this entity is mired in the 20th century. This is where the legislature could help by requiring business registrations to be handled in a prescribed digital manner and with timelines. Of course, all government entities would have to come to the party making it good for the State.
Question: Why does the ACC not require an email address in this the 21st Century?
Almost 2 months to do an LLC Name Change?
A Statute: This needs to be changed to no more than 5 years: The Pre-licensure education is valid for ten years (§32-2124-B). I hope you can help… I will work with the ADRE lobbyist.
Rationale: I have taught prelicense for over 4 years and too many changes in the law occur. Prelicense is teaching the law, not how to sell real estate. As it is now, someone can take my prelicense course for either salesperson or broker and wait 10 years before taking the state test. Another example is where an active licensee decides to let their license lapse past the 1 year grace period. The licensee was licensed on 1-1-2007. She did not renew on 1-31-2009 and on 1-31-2010 she had still not renewed so her license was terminated by ADRE. On 1-12-16 the licensee schedules to take the real estate exam over, using the certificate from the school in 2007. If she passes, she can reapply to the ADRE for her license WITHOUT any education. The laws are inconsistent. CE renewal for practicing agents is every 2 years. If education and keeping current helps the public, how can we allow this Statute as it is?
Have I heard anything back? Not yet.
I did send a letter to all 90 of Arizona’s Legislature and yes, ONE person was immediately responsive… the rest, including my own representative is silent. Thank you to Sylvia Allen who read my letter right away and then followed up yesterday by asking if she could give Mr. Bob Burns (Corporation Commissioner) a copy of my letter. Seems strange that 24 hours after I wrote it and sent it to him personally, his staff had not apprised him of the issue and letter. How embarrassing! To have to be told about the letter that went out to him first and the legislature second. Does not show that the ACC is at all responsive. A secretary at the ACC said she would give my letter to the Director, Patricia Barfield. Hmm. It was not directed to Director, Patricia Barfield. It was directed to Commissioner Bob Burns. Of course I gave her permission to pass it on and I told her while she was at it to give him a copy of the letter I sent the Governor which I supplied.
2 months to change the name of my LLC…
Please email me at firstname.lastname@example.org
Kathy Howe, owner/broker
- how2arizona real estate LLC (hoping to become Lifestyles of Arizona LLC)
- 1120 W SR89A, B5 (no mail)
- Sedona, AZ 86336
- Resident of Uptown Sedona
Update: At 3:30PM today, 1-14-16 I received an email approving the name change to Lifestyles of Arizona LLC. Yesterday afternoon I received the original denial postmarked 1-11-16 which the ACC told me was sent on 1-8-16. The approval comes with the requirement that I publish the entire information in the newspaper for weeks and supply them with the proof. Another 20th century means of communication. This is the 21st century and the information should be available online A friend in Hawaii said it only took her an hour to change the name of her LLC recently. Imagine: an hour. Everything is online.