As a new LLC business owner in Arizona, there are procedures and steps to setting up an LLC.
These procedures include everything that will keep your business up and running.
So in this article, you will learn about the best guide on how to start an LLC in Arizona with ease.
Reasons Why You Should Start an LLC in Arizona
Forming an LLC is the best option for a new business structure. This is because it affords business owners legal protection by separating personal assets from business debts.
In addition, LLC business owners often enjoy a lower tax rate than corporations.
However, forming an LLC can be tricky as each state in the United States has its checklist for starting an LLC with minor procedural differences.
How to Start An LLC in Arizona
To start an LLC in Arizona, you need to follow a standard process of filing Articles of Organization with the Arizona Corporations Commission.
This is different from other U.S states because Arizona uses the term “statutory agent” rather than the commonly-used “registered agent” when relating to the individual or business entity that handles service of process on the LLC’s behalf.
To avoid an error in the filing process, you must follow the steps below to start an LLC in Arizona.
Also, you must refer to the checklist to familiarize yourself with the legal and financial requirements for LLCs in the state.
Steps to Start an LLC in Arizona
These steps below will guide you on how to start an LLC in Arizona with ease
Select a Name for Your LLC
To begin with, you need to choose a name for your LLC following the naming requirements below.
When naming your LLC, there are guidelines to follow according to the state of Arizona.
Your LLC name must:
Be unique and distinguished from other business entities on file with the Arizona Corporations Commission.
Contain the words “Limited Liability Company” or the abbreviations “LLC,” “L.C.,” “LC,” or “L.L.C..”
Include the phrase “professional limited liability company,” or the abbreviations “PLC,” “P.L.C.,” “PLLC,” or P.L.L.C.”
Reserve your name with the Arizona Corporations Commission
After choosing a unique name for your LLC, you must check its availability online using the Arizona Corporations Commission business name database.
You must reserve the name with the Arizona Corporations Commission for up to 120 days if available.
This is done by filing an Application to Reserve Limited Liability Company Name.
Also, filing the application can be done online or via postal mail with a filing fee of $45, while the mail filing fee is $10.
Doing business As (DBA)
Arizona LLCs have the option of doing business under an assumed trade name which is also known as “DBA” (doing business as).
Businesses can use this name other than its official name included in the LLC Articles of Organization.
However, there is no legal filing requirement to do business using a trade name in Arizona.
Meanwhile, the Arizona Secretary of State provides the option of registering a trading name online for a $10 filing fee.
Designate A Statutory Agent
In every state in the United States, forming an LLC requires the appointment of a statutory agent service.
This statutory agent is typically known as a registered agent.
They handle state and federal legal documents and service of process on the business’s behalf.
However, the statutory agent must be a state resident with a physical address in Arizona.
Also, it can be an individual or business entity based out-of-state but must have a business office in Arizona.
The statutory agent must submit a completed Statutory Agent Acceptance form which can support the Articles of Organization when filed with the Arizona Corporations Commission.
File Articles of Organization
An Articles of Organization is required to form your LLC in Arizona legally.
This must be done with the Arizona Corporations Commission.
More so, the articles of organizations can be filed online at the Arizona Corporations Commission website.
It can also be completed and submitted through the mail. The filing fee for both online and postal mail filing is $50. There is an optional $35 for expedited service.
An Articles of Organization for Arizona LLC must contain the following details:
- Your LLC name
- Statutory agent name and address
- LLC principal office address
- Signature(s) of LLC organizer(s)
For Foreign LLCs
If you formed an LLC outside of Arizona, you are required to register with the Arizona Corporations Commission.
This registration can be done by completing the following steps:
- You must comply with Arizona LLC naming requirements.
- Determine that the LLC’s name is available for use in the state
- Appoint a statutory agent that is based in Arizona
- Complete and file an Application for Registration of a Foreign Limited Liability Company by postal mark.
Do this along with the certificate of existence from the LLC’s state of origin and a $150 filing fee payment.
Draft An Operating Agreement For Your LLC
Drafting an operating agreement is not a legally mandated step for forming an LLC in Arizona.
However, it is strongly recommended for all new limited liability companies.
This document describes the LLC’s business structure, establish the individual responsibilities and obligations of LLC members, and detail how the LLC will be run.
An LLC may face legal and operational difficulties without an operating agreement.
Obtain an IRS Employer Identification Number (EIN)
All new LLCs in the United States must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (except a single-member LLC).
The EIN is like a social security number for a business and is necessary to pay income tax, file tax returns, open business bank accounts, and perform several other essential functions.
Meanwhile, you can apply for an EIN online on the IRS website without paying a filing fee.
Publicize a notice of LLC Formation in a local newspaper in Your State
Newly-formed LLC in Arizona must publish a Notice of LLC Formation in a local newspaper with general circulation in the county.
This must be done in a state where it operates within 60 days of the approval of its Articles of Organization.
However, this is an important step. Excluding publishing a Notice of LLC Formation may result in the legal dissolution of the LLC.
Obtain your Arizona LLC’s additional legal obligations
It is crucial to fulfilling legal requirements that apply for the duration of the company’s existence.
Such legal requirements include:
Register for state taxes
Arizona LLCs that have employees or collect sales tax from selling products must register with the Arizona Department of Revenue.
More so, registration can be done online or through the mail.
You may require one or more state or locally-issued business licenses, permits, or certifications, depending on the nature of your LLC business.
Visit the Arizona Department of Commerce Licensing for information on obtaining state licenses.
To form an LLC in Arizona requires that you: choose a business name following the naming guidelines.
More so, you have to follow the registration procedures, which include filing Articles of Organization with the Arizona Corporations Commission and publishing a Notice of LLC Formation, which must be done within 60 days of the approval of an LLC’s Articles of Organization.
Register for state tax online through the Arizona Department of Revenue and obtain the state and local business licenses:
We hope you find this guide on how to start an LLC in Arizona helpful.
How to start an LLC in other states of the United States
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