How to Start an LLC in Arizona Step-by-Step Guide
Here are the six steps to establishing an LLC in Arizona:
- Choose a Unique name for the LLC
- Appoint a registered agent
- File the Articles of organization
- Complete the Publication Requirement
- Create an Operating Agreement
- Get an EIN (Employer Identification Number)
If you want to form your LLC yourself, follow our comprehensive guide below at no cost.
For further details on LLC expenses, Explore the specifics of LLC costs in Arizona.
See "How Long Does It Take to Form an LLC in Arizona" to find out how long it will take to get your LLC approved and to make sure there are no delays.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
Here are the steps to forming an LLC in Arizona
1. Search for your Limited Liability Company (LLC) Name
First, search your business name. Entity Search tool to ensure it's unique and not already in use.
This is necessary because two businesses in the state cannot share the same name
Second, check domain availability for an online presence Select a name that is memorable to the customer and best suited for the brand.
We'll explore the specifics of naming an LLC in Arizona in greater detail.
How can I find out if the LLC name I want is available?
To check if your desired LLC name is available in Arizona, you can search the Arizona Corporation Commission online.
Which names are legal in Arizona for an LLC?
The name must include "Limited Liability Company," "LLC," or "L.L.C." It must be distinguishable from other business names registered in Arizona and should not contain restricted words without approval.
Can my LLC have a name reserved?
Yes, you can reserve a name for up to 120 days by filing a Name Reservation application with a $45 cost in Arizona.
What is the initial cost of forming an LLC in Arizona?
Starting an Arizona LLC costs $50. This fee is required to file the Articles of Organization with the Arizona Corporation Commission.
How much time does it take in Arizona to form an LLC?
It typically takes 14-16 days to complete the process and receive approval for your LLC in Arizona. This timeframe may vary based on current processing times and the submission method(online or by mail).
2. Choose an Arizona Registered Agent
The next step is to select the Arizona Registered Agent.
A person or organization appointed to accept official notices and legal communications on behalf of your LLC may function as your LLC's registered agent in Arizona. To carry out this function efficiently, they must have a physical address inside the state.
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Who is eligible to serve as an LLC Registered Agent?
Your LLC's registered agent can be you.
- A trusted friend or family member
- A professional Registered Agent Service
- You
They must have a physical address in Arizona, as PO Boxes are strictly unacceptable.
The Registered Agent's details are available to the public in state records.
If you prioritize privacy or lack a physical Arizona address, a Registered Agent Service could be beneficial.
What is a Registered Agent?
A Registered Agent is a person or entity designated to receive legal documents and official government communications on behalf of the LLC.
Who can be a Registered Agent in Arizona?
The Registered Agent can be an individual resident of Arizona or a business entity authorized to do business in Arizona. The agent must have a physical street address in Arizona (no P.O. boxes).
Can I act as my Registered Agent?
Yes, if you meet the residency and physical address requirements, You can act as your Registered Agent.
3. File Arizona LLC Articles of Organization
Prepare and submit the Articles of Organization to the Arizona Corporation Commission.
Guide for completing the articles. Including details like your name and registered agents.
Filing the Arizona LLC Articles of Organization costs $50 when submitted online. This is a one-time cost to create your LLC.
If you want to file this yourself, see our step-by-step guide: ?.
How do I file the Articles of Organization?
You can file the Articles of Organization online or by mail with the Arizona Corporation Commission, Business and Professional Licensing. The filing fee is $50.
What information is required in the Articles of Organization?
The Articles of Organization must include the LLC’s name, principal office address, registered agent information, and the names and addresses of the organizers.
How long does it take to process the Articles of Organization?
Processing times can vary. Online filings are typically processed within a few business days, while mail filings may take longer.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
4. Fulfill the LLC Publication Requirement
Arizona is one of three states that mandates Limited Liability Companies to publish a newspaper advertisement after formation.
Initially, this was intended to inform the public about new business formations.
Despite the diminished relevance of newspaper advertisements today, Arizona's LLC regulations still necessitate new LLCs to publish an ad in one newspaper for three consecutive publications. Typically, these three publications span one to two weeks.
What are the costs for the Newspaper ads?
You should expect to pay between $60 and $120 on average for your newspaper >ads>. We advise you to call a few newspapers to inquire about their rates.
Where should I place the ads?
Where should I place the ads? The newspaper must be situated in the same county as your LLC's Statutory Agent address.
Exception: If your Arizona Statutory Agent's address is in Maricopa or Pima Counties, you are not required to publish any ads in the newspaper.
5. Create an Alaska LLC Operating Agreement
An Arizona LLC Operating Agreement is like a companion document to the Articles of Organization. The Articles create your LLC, while the Operating Agreement explains who owns it.
Banks may require it to open your LLC business bank account, and it is important in court to prove your LLC is running correctly.
That's why we recommend that all LLCs, including Single-Member LLCs, have an Operating Agreement.
Operating Agreement is essential in legal proceedings because it serves as evidence that your LLC operates by proper governance practices, bolstering your defense in court.
An Operating Agreement is an internal document, so you don’t need to file it with the Arizona Corporation Commission or the IRS. Just keep a copy in your business records for your reference.
What is an Operating Agreement?
An Operating Agreement is a document that outlines the ownership, management structure, and operating procedures of the LLC.
Is an Operating Agreement required in Alaska?
While not legally required, it is highly recommended to have an Operating Agreement to establish clear rules and prevent disputes.
What should be included in an Operating Agreement?
The Operating Agreement should include details on member roles and responsibilities, voting rights, profit distribution, management structure, and procedures for adding or removing members.
5. Get an EIN
An Arizona EIN is also called a federal tax ID number or federal employer identification number.
An EIN (Employer Identification Number) is needed for:
- Identifying tax purposes
- Apply for licenses and permits
- To open the business bank accounts
How do I apply for an EIN?
You can apply for an EIN online through the IRS, by mail, or by fax.
How much does an EIN cost?
Obtaining an EIN from the IRS comes at no cost. The application process is free.
How much time does it take to receive an EIN?
When applying online, it takes around 5 to 10 minutes.
If you choose to apply by mail or fax, it can take around 4 weeks.
Why do I need an EIN for my LLC?
An EIN is required for federal tax purposes, hiring employees, opening a business bank account, and fulfilling other business-related requirements.
How can I obtain an EIN?
For US Citizens or Residents: If you possess an SSN or ITIN, you are eligible to apply for an EIN online. Simply follow these steps: Apply for an EIN online.
For Non-US Residents: You are unable to obtain an EIN online, but you can still acquire one through fax or mail. Follow these steps to get an EIN without an SSN or ITIN.
What Should I Do after the LLC is Approved?
Business bank account for Arizona LLC
Opening a business bank account for your Arizona LLC is essential to keep personal and business finances separate. This separation helps maintain accurate financial records, simplifies tax filing, and protects your assets in case of legal issues.
Arizona Licenses and Permits
Arizona LLCs may require various licenses and permits depending on their location, industry, and business activities.
Taxes for Arizona LLC
Arizona LLCs are subject to several taxes, including federal and state income taxes, sales taxes (if applicable), and payroll taxes if the LLC has employees. Understanding and complying with these tax obligations is crucial to avoiding penalties and maintaining good standing with tax authorities.
Annual Report Requirement
Arizona LLCs must file an Annual Report each year to the Arizona Corporation Commission. This report updates the state with any changes to the LLC's business details and requires payment of a filing fee. Keeping this report current ensures that your LLC remains in good standing and compliant with state regulations.