How To Start an Arizona LLC

Andrew C. McGuire

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Well you’re trying to figure out how to start an LLC in Arizona are you! Well it’s a lovely desert state that is known for the Grand Canyon and Hover Dam. It’s a ‘dam’ wonderful state!

You’re most likely going to setup a limited liability company in Maricopa or Pima counties where you know that you’ll need business licenses to structure your business. Below you’ll find a few recommendations of services we offer once you get your Arizona LLC setup the right way.

You’ll also find that you’re going to need an LLC operating agreement, Employer Identification Number and of course a registered agent. We go through all of this and more in this Professional LLC guide that will take you to where you need to go.

Name Your Arizona LLC

You must select a name for an article before you can create an LLC. Names have the Arizona name laws as a prerequisite.

Arizona has a great site to search whether your LLC name is already taken. Check it out here: https://ecorp.azcc.gov/AzAccount?sessionExpired=False

The database has documents from the last 90 days but it’s always important to check with each state directly before assuming your business name can be used.

Some naming tips:

  • Use LLC, L.L.C., Ltd. Liability Co. or LLP after your company name
  • You cannot use University, Bank, Insurance, Corporation or Incorporated in the title of your LLC
  • Your name can’t be too similar to an existing business name to cause confusion

Reserve a Name for Your LLC

You may want to hold your LLC name before moving forward with the creation process.

To do this, you must submit an application and pay a $50 filing fee to the state of Arizona. The document is called an Application for Certificate of Reservation of Limited Liability Company Name.

Your business structure and name should be one of the first things you look to do before you move on to the next topic.

You can also use this name and reserve it with a credit union once you’re ready to get a bank or credit union account setup.

You will also want to make sure you’ve got a physical street address that you’re referring to in the operating agreement.

Choose Your Statutory Agent

Arizona requires that you appoint an authorized person for your LLC.

A lawful agent is any person whose authority to serve on behalf of an LP has been deemed.

Statutory agents are individuals and entities that offer registration services to registered agents.

They have to fulfill some criteria:

  • Be able to act on your behalf in the case of legal proceedings
  • Be reachable at a physical address during business hours
  • Have written approval from you to act on your behalf
  • Accept service of process on your behalf
  • The agent must reside in Arizona and have a physical mailing address in the state.
  • The LLC’s statutory agent may be an individual residing in the state or a business entity authorized to do business in Arizona.

You can find more information on statutory agents here: https://www.azcc.gov/Divisions/Corporations/Liability-Companies

As a state that has a requirement for a statutory agent, you’ll need to make sure you’re following the right protocol otherwise you’ll end up with an individual or business entity that won’t allow the LLC owners to operate in a way you’d like. An Arizona Statutory Agent is important and can help you make sure the LLC formation is setup the right way.

Remember there are steps to take and the Arizona Department and Arizona Law are items you’ll need to follow – especially in Maricopa or Pima counties.

Prepare and File Articles of Organization

A company article is one document whose purpose is to establish and officially establish a corporation and provide information. Prepare an Article of Organization and submit it to the Arizona Corporate Commission for proper registration in Arizona LLCs.

When writing the article, the secretary of state reviews the submission. Upon approval, the entity shall become legal entity.

The following are the required LLC Articles of Organization:

  • The name and mailing address of the LLC
  • The names and addresses of the members
  • The date on which the Articles of Organization shall become effective
  • The purpose of the LLC
  • The name and address of the Statutory Agent
  • The management structure of the LLC
  • The duration of the LLC
  • The mailing address of the LLC
  • The signature of the organizer

There is a filing fee of $50 to submit the Articles of Organization to the state. The filing fee is paid at the time of filing and is non-refundable.

You can find more information on how to file the Articles of Organization here: https://www.azcc.gov/Divisions/Corporations/Liability-Companies.

This is different than getting business licenses or the overall LLC formation – this is just one step of that. When you’re building your Limited Liability Company, it’s going to be very important that set this up for the right business structure.

Complete publication requirements

A company must post a notice of incorporation for three consecutive weeks at the headquarters in the County where the LLC is registered.

The notice of formation will include the following:

  • The name of the LLC.
  • Names and addresses of the agent and the statutory agent.
  • LLC main office address.
  • How are LLC Managers and Members Managed?
  • Names of employees or members of the LLC.

LLCs created within Maricopa County are not obliged to satisfy publication regulations.

The company files a Certificate of Disclosure with the Arizona Corporation Commission in lieu of newspaper publication. The disclosure must contain all the data that would have been required for publication.

15 days after the last day of publication, an affidavit is filed with the ACC, which verifies compliance with state law. After filing, your LLC will be legally formed, and you can begin conducting business in the state of Arizona.

File for your EIN

After your LLC is formed, you will need to obtain an Employer Identification Number (EIN) from the IRS. You can apply for your EIN online, by fax, or by mail.

If you are applying for your EIN online, you will need to have the following information handy:

The name and address of your LLC

The name and Social Security number of the LLC owner

The reason for applying for an EIN

The date your LLC was formed

The type of LLC you have formed

You will also need to have a valid email address in order to complete the online application.

If you are applying for your EIN by fax or by mail, you will need to complete Form SS-4 and submit it to the IRS.

Once you have obtained your EIN, you will use it to open a business bank account and to file your taxes. By setting up a business bank account, you’ll be able also get a business credit card which can help you start to establish a line of credit.

There are a few final things to do after you’ve completed these steps.

First, you will need to draft Operating Agreement, which outlines the ownership and operating procedures of your LLC. This document is not required by the state, but it is a good idea to have one in place.

Next, you will need to obtain any necessary business licenses and permits. The type of business you are running will determine which licenses and permits you will need.

From there, you’ll need to make sure you have gotten some type of business insurance to protect yourself.

Finally, you will need to establish a good record-keeping system. You will need to keep track of your income and expenses, as well as the minutes of any meetings you hold. This will also help you separate personal and business assets for your limited liability company.

You’ll also have to work with the Internal Revenue Service as you start to think about paying sales tax whether it’s a professional services organization or a sole proprietorship.

All of this can be written out in your operating agreement and help you make sure the Federal Employer Identification Number is used in the proper way to have a successful Limited Liability Company.

By following these steps, you can start an LLC in Arizona.

FAQs

Do I business insurance for my Arizona LLC?

Yes, you should get some type of business insurance to protect your LLC. The type of insurance you will need will depend on the type of business you are running.

Do I need a business permit or license to operate my Arizona LLC?

The type of business you are running will determine which licenses and permits you will need.

Do I need to file a Certificate of Disclosure?

Yes, if your LLC is created within Maricopa County, you will need to file a Certificate of Disclosure with the Arizona Corporation Commission.

How do I file taxes for my Arizona LLC?

The LLC will need to file taxes as a business entity. The LLC owner will also need to pay taxes on any income they receive from the LLC.

How do I dissolve my Arizona LLC?

If you want to dissolve your LLC, you will need to file a Certificate of Cancellation with the Arizona Corporation Commission.

How much does it cost to start an Arizona LLC?

The filing fee for an LLC in Arizona is $50. You will also need to pay a $25 publication fee if you choose to have your

How do I change the name of my Arizona LLC?

If you want to change the name of your LLC, you will need to file an Amendment to the Articles of Organization with the Arizona Corporation Commission.

How do I file an annual report for my Arizona LLC?

Every year, LLCs in Arizona are required to file an annual report with the Arizona Corporation Commission. The filing fee for the annual report is $50.

How do I add members to my Arizona LLC?

If you want to add members to your LLC, you will need to file an Amendment to the Articles of Organization with the Arizona Corporation Commission.

How do I remove members from my Arizona LLC?

If you want to remove members from your LLC, you will need to file an Amendment to the Articles of Organization with the Arizona Corporation Commission.

How do I change the address of my Arizona LLC?

If you want to change the address of your LLC, you will need to file an Amendment to the Articles of Organization with the Arizona Corporation Commission.

How do I change the registered agent for my Arizona LLC?

If you want to change the registered agent for your LLC, you will need to file an Amendment to the Articles of Organization with the Arizona Corporation Commission.

Can I form an LLC in Arizona if I live in another state?

Yes, you can form an LLC in Arizona even if you live in another state.

Do I need a bank account for my Arizona LLC?

Yes, you will need to open a bank account for your LLC. This will help you separate your personal and business finances.

Can I form an LLC with just one member?

Yes, you can form an LLC with just one member.

Do I need a DBA for my Arizona LLC?

No, you do not need a DBA for your LLC.

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