If I am creating a service agreement between "me the business" and "my client" and I am from New Hampshire just moved to Arizona, is it highly recommended that I choose an agreement based on governed by Arizona business laws or am I able to pick New Hampshire based business laws to govern the agreement? Which is recommended and why?
2 Answers from Attorneys
If the business is operating in AZ, you would be well advised to have an agreement that complies with and is controlled by AZ laws. You don't say what form the business is (corporation, llc, proprietorship) and if you have been operating in New Hampshire. If you are doing business as a separate legal entity (corporation, llc, etc), you must observe the formalities of that separate legal entity, and they are other possible consequences or issues to look out for, ie. taxation, operations, others involved in the business, and more. You should consult with an attorney at once.
Usually an agreement grabs the venue and jurisdiction where you live and operate, i.e., the state's laws and the nearest courthouse. Otherwise you may wind up traveling to New Hampshire, over and over again, to litigate a matter. You can mix the two, but what are the chances of finding an Arizona lawyer familiar with New Hampshire's laws?
Arizona's laws are very different from those of New Hampshire, and you should have an Arizona attorney draft your agreement to take advantage of the legal strategies allowed in the state of Arizona.
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