An Arizona Limited Liability Company (LLC) is a type of business structure established under the laws of the state of Arizona.
As a form of limited liability company, it offers its owners, often referred to as members, certain protections from personal liability for business debts or liabilities, meaning the members’ personal assets are generally not at risk should the business incur debt or face lawsuits.
An Arizona LLC can be either member-managed or manager-managed depending on the members’ preferences, and its income and losses pass through directly to the members’ personal income without corporate taxation.
This structure offers the flexibility of a partnership with the liability protection of a corporation, making it a popular choice for many entrepreneurs and business owners in Arizona.
Start an Arizona LLC for $0 + state fee
To form an LLC in Arizona for free + state fee, we have listed 3 options to consider:
You can go online and visit the Arizona Secretary of State’s website and do it yourself or you can use the ‘free’ service from Incfile or ZenBusiness.
Want to Keep Things More Private?
- Northwest $39 + state fee ‘Privacy by Default’
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Forming an LLC in Arizona for $0 (DIY Summary)
If you’re considering starting a business in Arizona, forming a Limited Liability Company (LLC) can provide numerous benefits, including personal asset protection and simplified tax reporting.
In this step-by-step guide, we will walk you through the process of forming an LLC in Arizona.
By following these clear instructions, WordPress users can establish a solid foundation for their business venture. So, let’s begin and learn how to form an LLC in Arizona.
Step 1: Choose a Name for Your LLC
The first crucial step in forming an LLC in Arizona is selecting a unique name for your business.
Your LLC name must comply with Arizona’s naming requirements and should not be confusingly similar to an existing business.
Conduct a thorough search on the Arizona Corporation Commission (ACC) website to ensure the availability of your desired name.
You can access the ACC’s Business Entity Search tool here.
Step 2: Appoint a Registered Agent
Next, you need to appoint a registered agent for your LLC in Arizona.
A registered agent is responsible for receiving legal and official documents on behalf of your business.
The registered agent must have a physical street address in Arizona.
You can choose to be your own registered agent or hire a professional registered agent service. Ensure that the chosen agent is reliable and capable of fulfilling the role effectively.
Step 3: File Articles of Organization
To officially form your LLC, you must file Articles of Organization with the Arizona Corporation Commission.
This document provides essential information about your business, including the LLC’s name, address, registered agent details, and more.
You can submit the Articles of Organization online through the ACC’s eCorp system.
For more information and access to the online filing portal, visit the Arizona Corporation Commission’s website here.
Step 4: Create an LLC Operating Agreement
Although not legally required in Arizona, it’s highly recommended to create an operating agreement for your LLC.
This document outlines the ownership structure, roles, and responsibilities of LLC members, as well as procedures for decision-making and dispute resolution.
Drafting an operating agreement helps clarify expectations and can prevent conflicts in the future. Consider seeking legal advice to ensure your operating agreement complies with Arizona law.
Step 5: Obtain an EIN
An Employer Identification Number (EIN) is a unique identification number issued by the Internal Revenue Service (IRS).
Obtaining an EIN is necessary for opening a business bank account, hiring employees, and fulfilling tax obligations.
You can apply for an EIN online through the IRS website. The process is free, fast, and straightforward.
To begin your EIN application, visit the IRS EIN Assistant page here.
Step 6: Comply with Arizona Tax Requirements
Ensure that you meet all Arizona tax requirements to avoid penalties and legal issues.
Register with the Arizona Department of Revenue to obtain a Transaction Privilege Tax (TPT) license if your LLC will engage in taxable activities.
Visit the Department of Revenue’s website here for more information on Arizona tax obligations and to register your business.
Step 7: Maintain Ongoing Compliance
After forming your LLC, you must fulfill certain ongoing compliance obligations.
This includes filing an Annual Report with the Arizona Corporation Commission each year, paying the required fee, and keeping your business information updated.
Failure to comply with these requirements may result in penalties or dissolution of your LLC. Stay organized and ensure you meet all necessary deadlines.
Conclusion: Forming an LLC in Arizona is an essential step toward establishing a legal and protected business entity.
By following these step-by-step instructions, WordPress users can successfully navigate the process of forming an LLC in Arizona.
Remember to conduct thorough research, seek professional advice when necessary, and stay compliant with Arizona’s regulations. Good luck with your entrepreneurial journey in the beautiful state of Arizona!
Note: This article provides general guidance and is not a substitute for professional legal advice. It’s recommended to consult with an attorney or a business professional to ensure compliance with specific requirements and regulations in Arizona.
Arizona Business Tips
Forming an LLC in Arizona involves several key steps and considerations. To begin, you must complete the necessary paperwork and filings to form an LLC in Arizona.
Conducting a thorough Arizona LLC name search is crucial when starting an AZ business to ensure that your desired business name is available and meets the state’s requirements and get your Arizona entity name registered or if you just file a DBA in Arizona if necessary.
Additionally, drafting a Arizona LLC operating agreement is essential as it outlines the internal management structure and operational guidelines for your LLC.
While you have the option to be your own registered agent in Arizona, many entrepreneurs opt to enlist the services of professional registered agents for their expertise and convenience. The length of time it takes to get an LLC in Arizona can vary depending on various factors such as processing times and the complexity of your application.
Alongside the formation process, you’ll need to obtain a Arizona Employer Identification Number (EIN) from the IRS, which is necessary for tax purposes. To streamline the process and ensure compliance, it is advisable to seek the assistance of the top-rated LLC services in Arizona and the best registered agents in Arizona, who can guide you through the process and handle the necessary documentation.
Understanding the associated costs to form an LLC in Arizona is crucial, as it includes filing fees and potentially additional expenses based on the services you require.
Lastly, if you ever need to change your Arizona registered agent or dissolve an LLC in Arizona, it’s important to follow the state’s dissolution procedures to conclude your business operations effectively.
Form an LLC in Arizona. Learn how to get an LLC name, registered agent, Articles of Organization, Arizona LLC operating agreement, and EIN.
Forming an LLC in Arizona
LLC Arizona – To start an LLC in Arizona, you’ll need to file your Articles of Organization with the Arizona Corporate Commission, which costs $50 online.
You can apply online, by mail, by fax, or in person. The Articles of Organization is the legal document that officially creates your Arizona limited liability company.
Because LLCs can be set up quickly, are cost-effective, and allow owners to have flexibility, they are also easy to manage.
Legally forming your LLC will establish your business, limit personal liability, give you tax flexibility, and create a legal entity. As you move through the entire process, you will be guided by the following steps.
If you want to use an LLC service, visit our list of the best LLC services in Arizona.
This page will provide you with all the necessary steps to do an Arizona entity name search, draft an Arizona LLC operating agreement, and answer questions like, can I be my own registered agent in Arizona? and how long does it take to get an Arizona LLC? and ensure your Arizona LLC is properly formed.
Arizona Business Resources
Step-by-Step Arizona LLC Guide
Check Name Availability
Your LLC’s legal address may not conflict with any other registered title. A name search can help you find out if your name is available.
Arizona Corporation Commission, Corporations Division
Name Reservation Optional Suffix:
“A. 1. The name of a limited-liability company, as stated in its articles shall be: Include the words “limited responsibility company” or “limited firm” or abbreviations L.L.C. “, “L.C. “, L.C.
2. Don’t include “association”, “corporation”, “incorporated” or any abbreviation.
3. Don’t use the words bank, deposit, credit union, trust or company in conjunction to indicate or communicate that the limited responsibility company is engaged with banking, banking, trust or other financial services unless the company becomes and becomes actively and substantially involved in these activities.
Designate an Arizona Registered Agent
Before you are able to file for your Arizona LLC formation, you must choose your Arizona registered agent. Registered agents allow businesses to receive notices of lawsuits and other legal/government notices.
The state law requires that every LLC has a registered representative. When Arizona Corporation Commission (Corporations Division) files Arizona articles of incorporation, the registered agent is named.
Arizona Certificate Of Formation
Fill out the articles of incorporation to establish your limited liability company.
Agency: Arizona Corporation Commission, Corporations Division Form:
Articles of Organization
Instructions Articles of Organization
Filing Method Mail, in person or on-line. Agency Fee $50 + optional $35 expedite cost Turnaround: See the state-published current Processing Times (usually approximately two months). $35 expedite fee. Usually takes 7-10 business days. Law:
ARS SS29-601 et seq
A complete application package includes:
- Form CFCVLR-Cover sheet
- Form L010 (Articles of Organization)
- Form L040, Manager Structure Attachment or L041: Member Struktur Attachment
- Form L042 Attachment Organizer, if applicable
- Form M002 (Statutory Agent Acceptance)
- Payment, including an optional expedite charge
Instructions: After approval by the Arizona Corporations Commission, your organization will be sent a notice that includes publishing instructions. Agency Fee Journal and newspaper publication fees vary depending on length of content; estimates for publishers’ fees range from $200 to $200. Notes: Publication isn’t required if an entity has a physical location in Maricopa County or Pima County. Publication is not required by foreign entities if their registered agent address is in Maricopa County or Pima County.
Provide proof of publication
Affidavits are not required to prove publication to the A.C.C. It is not required.
More information is available at Arizona Corporation Commission – Corporations Division
Establish Company Records
Your LLC must keep accurate records and books. Your LLC’s original articles of organization will be the first document you keep. Other records will be created by your LLC, including:
- Minutes of the meeting
- Operating Agreement
- EIN verification letter
- The LLC may be amended or filed with other entities throughout its lifetime.
Secure and centralized tools are required to access and manage organizations’ sensitive records.
Create an Arizona Operating Agreement
It is possible to use a template to draft an Operating Agreement. This document will serve as the governing document. It describes the details of how the LLC operates, such as holding an annual conference. You will read and then adopt the agreement during your organizational meeting.
Hold the Organizational Meeting
The organizational meeting, which is the initial meeting of LLC members, is the most important. In order to hold this meeting, you’ll need your operating agreements and the filed articles. Keep a log of the meeting, and save it in your company’s record book.
Get a federal employer identification number (EIN)
EIN is needed if the LLC will have multiple members or hire employees. EINs can also be required to open a bank or other financial account.
Agency: Internal Revenue Service Form:
IRS form SS-4
Filing Method Mail, phone and fax. online. IRS fee $0 Turnaround: You can get your order immediately online or by phone. By fax, it takes 4 business working days. 4-5 Weeks by mail Notes: The IRS website cannot be accessed outside of certain hours. Print your EIN before you close the session. IRS Publi 1635: Understanding the EIN.
Get Arizona State Tax Identification Numbers/Accounts
Arizona does not offer a consolidated application for tax registration. Register for each tax account you need.
A Guide on Taxes for Arizona Business
- Submit to
Arizona Department of Revenue
Arizona Joint Tax Application (Form HTML-1) will be used to submit for Transaction Privilege Tax or Use Tax. Each location/license costs $12.
Consider Electing C-Corp and C-Corp Taxation
Your LLC receives passthrough taxation by default. The vast majority (95%) of LLCs) keep this tax classification. Some LLCs are eligible to elect S-Corporation and C-Corp tax treatment.
- S-Corp can help owner-employees making more than $75,000 a year save on self-employment income taxes.
- C-Corps face double taxation. First, the corporation pays income taxes and then the members pay distribution taxes. C-Corps can offer lower tax rates to retained earnings.
How to get a Business License & Permit
It is necessary to obtain the required licenses and permits in order for your business to be legally operated. The Small Business Administration Business License & Permit lookup tool makes it easy to search through the large number of state, federal, and local requirements.
Arizona Business License
Arizona does NOT require licensure as a general business license.
Arizona does have a local business license but not a general one at the state level.
To Maintain Your LLC, You Need to File Ongoing Filings
You must file your federal and state taxes returns.
A lot of states require businesses to file an annual return to keep their status with the secretary. Below is a table that explains what an annual report for LLCs created in Arizona.
Arizona Corporation Annual Report Requirements:
Agency: Arizona Corporation Commission, Corporations Division Form: Fill out the online form and then contact the ACC. Filing Method Mail or . Agency Fee $45 Turnaround: Get the most current processing times. Expedited service available for $35 Due: To find out the due date of your corporation, you can check the record by entering the entity title in the search box. Click on “search” to get the results. Law:
Penalties: $9/month. A Notice in Pending Administrative dissolution will be mailed approximately 90 days following the due date to the corporation’s registered agent. The corporation will be administratively dissolved if it isn’t submitted by the deadline of 60 days. Notes:
- A report must include the name of any officer.
- You cannot change your registered agent by using this annual reporting.
- If you file online, please print the receipt at the end of your process (after the credit card payment page) for your records.
- You must include a cover page when you mail your request.
Arizona Related Posts
What is the average time it takes to create an LLC in Arizona?
In Arizona, it usually takes about three weeks to get approved. For an additional fee, expedited processing can be arranged. This reduces the filing period to 7-10 business days.
What are the annual Arizona LLC fees?
The LLC is not subject to recurring fees, but an Annual Report must be filed.
What are the costs of hiring a Statutory Agent?
Anybody can be a Statutory agent provided they are at minimum 18 years of age, live in the state, and are available during normal business hours.
Is a business license required for an Arizona LLC?
Sometimes it is believed that LLC or business licenses are one and the same. However, they are not.
An LLC is a way a company is organized to be able to do business. Business licensing is approved by a government entity in order to legally operate.
What happens if my LLC advertisement isn’t published?
The Arizona Corporations Commission can terminate an LLC if it fails to comply with the Arizona publication requirements within 60 days after formation.
What is a Foreign Limited Liability Company (FLLC)?
An LLC that is operating in other states than the one where it was founded. Being physically operational means that the LLC has a physical presence, such as an office or employee. Each state in which the LLC plans to operate will require it to register as an LLC foreign.
Brian Wilson is the content manager and founder of LLC Radar.
Brian grew up in North Texas, just outside of Dallas, and has a bachelor’s degree in business journalism from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications.
Brian resides in Plano, Texas and he can be reached by email: email@example.com