Which type of licensee must submit proof of good standing with the Arizona Corporate Commission with an application for renewal?

The requirement for corporations and LLCs to submit proof of good standing with the Arizona Corporate Commission when renewing their license is established to ensure that these entities are active and compliant with state regulations. Corporations and limited liability companies (LLCs) are formed under state law and must maintain their legal status to operate legally in Arizona. Proof of good standing verifies that the entity has filed all necessary documents with the Arizona Corporate Commission, has paid required fees, and is in compliance with state regulations.

Maintaining a current status is crucial for corporations and LLCs because it helps protect the interests of consumers and ensures that the business operates within the legal framework. This requirement supports accountability and transparency in the construction industry, which is essential for maintaining trust and reliability.

Other types of licensees, such as individuals or sole proprietorships, do not have the same legal structure and are not required to provide similar proof of standing with respect to corporate compliance, thus making this stipulation unique to corporations and LLCs.