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REFERENCE TITLE: corporate status change; nontaxable event |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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HB 2438 |
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Introduced by Representatives Farnsworth E: Cobb
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AN ACT
Amending title 10, chapter 2, article 1, Arizona Revised Statutes, by adding section 10-208; amending title 29, chapter 4, article 8, Arizona Revised Statutes, by adding section 29-787; amending title 43, chapter 9, article 5, Arizona Revised Statutes, by adding section 43-954; relating to corporations.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 10, chapter 2, article 1, Arizona Revised Statutes, is amended by adding section 10-208, to read:
10-208. Incorporation of prior limited liability company; nontaxable event
The incorporation of a prior limited liability company contemporaneous with its dissolution under title 29 is not a taxable event for any purpose of this title or title 29 or 43 if all members of the dissolved limited liability company become the only shareholders of the corporation and all assets of the limited liability company are transferred to the corporation.
Sec. 2. Title 29, chapter 4, article 8, Arizona Revised Statutes, is amended by adding section 29-787, to read:
29-787. Incorporation of dissolved limited liability company; nontaxable event
The dissolution of a limited liability company contemporaneous with its incorporation under title 10 is not a taxable event for any purpose of this title or title 10 or 43 if all members of the dissolved limited liability company become the only shareholders of the corporation and all assets of the limited liability company are transferred to the corporation.
Sec. 3. Title 43, chapter 9, article 5, Arizona Revised Statutes, is amended by adding section 43-954, to read:
43-954. Incorporation of prior limited liability company; nontaxable event
The incorporation under title 10 of a prior limited liability company contemporaneous with its dissolution under title 29 is not a taxable event for any purpose of this title or title 10 or 29 if all members of the dissolved limited liability company become the only shareholders of the corporation and all assets of the limited liability company are transferred to the corporation.