When it comes to business it’s better to have a clear knowledge of the one you really would like to venture into. Every business is a step by step process, it not something that you will just sit down at your home and decide what to do and it will come to pass without hard work and stress.
Every successful business you see today started somewhere and truly, some of the business owners now can really boast that their business has gone far and wide. So, you too can be like them, if you really want to make a positive change in your business.
Do you know that forming an LLC is the simplest way of structuring your business to protect your personal assets in case your business is sued?
Now, you have an idea of why you should start an LLC in Arizona.
A limited liability company (LLC) is a business entity that offers certain legal protections and rights to its owners. An LLC is either a corporation or a sole proprietorship/partnership.
Arizona LLC Information
Forming LLCs in Arizona is affordable and easy. Unlike other states, the State of Arizona has some unique LLC requirements.
Interested parties must register with the Arizona Corporate Commission by filing the necessary forms, paying the necessary fees, and meeting all naming and formation requirements.
The specifications required of an Arizona LLC are:
1. Name Your Arizona LLC
Choosing a company name is the first and most important step in opening an LLC in Arizona. Be sure to choose a name that complies with Arizona naming requirements and is easily searchable by potential clients.
1. Follow The Naming Guidelines:
- Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
- Your name cannot include words that could confuse your Arizona LLC with a government agency (FBI, Treasury, State Department, etc.).
- Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your Arizona LLC.
- Your name must be distinguishable from any other Arizona limited liability company, corporation, limited liability partnership, limited partnership, or trade name.
For more information, check out the Arizona Corporation Commission.
2. Is The Name Available In Arizona?
Make sure the name you want isn’t already taken by doing a name search on the Arizona eCorp website.
2. Choose A Statutory Agent In Arizona
You are required to nominate an Arizona statutory agent for your LLC. A statutory agent is more commonly known as a registered agent in other states.
What Is A Statutory Agent?
A statutory agent is an individual or business entity responsible for receiving important tax forms, legal documents, a notice of lawsuits, and official government correspondence on behalf of your business. Think of your statutory agent as your business’s point of contact with the state.
Who Can Be A Statutory Agent?
A statutory agent must be a resident of Arizona or a corporation authorized to transact business in Arizona. You may elect an individual within the company including yourself.
FAQ: Nominating An Arizona Statutory Agent
Can I Be My Own Statutory Agent In Arizona?
Yes. You or anyone else in your company can serve as the statutory agent for your Arizona LLC.
Is A Registered Agent Service Worth It?
Using a professional registered agent service is an affordable way to manage government filings for your Arizona LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.
3. File The Arizona LLC Articles Of Organization
To register your Arizona LLC, you will need to file the Articles of Organization with the Arizona Corporation Commission. You can apply online, by mail, or in-person. Some states refer to the Articles of Organization as the Certificate of Formation or Certificate of Organization.
The Articles of Organization for an LLC (limited liability company) in Arizona is a legal document to officially form your business. You’ll be expected to provide the name of your LLC, choose a statutory agent, list the services your LLC will offer, and pay the state filing fee. After you file the Articles of Organization, we recommend you obtain an Employer Identification Number (EIN) if you plan to hire employees and open a business bank account.
FAQ: Filing Arizona LLC Documents
How Long Does It Take To Form An LLC In Arizona?
Regular Articles of Organization processing can take up to 30 business days, but documents can be expedited for an additional fee.
What Is The Difference Between A Domestic LLC And A Foreign LLC?
An LLC is referred to as a “domestic LLC” when it conducts business in the state where it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.
4. Complete Arizona LLC Publication Requirement
What Is Arizona’s LLC Publication Requirement?
Arizona requires newly formed LLCs to publish a Notice of LLC Formation for three consecutive weeks in an approved newspaper in the county of the LLC’s principal office. This must be done within 60 days of formation.
Exceptions: Businesses whose principal address is in either Maricopa or Pima counties do not have to publish a Notice of LLC Formation.
What Does My Notice Of LLC Formation Need To Include?
You will need to publish the following information:
- Your LLC’s name
- The name and street address of your Statutory Agent
- The address of the LLC’s principal place of business (if different from that of the Statutory Agent)
- Whether your LLC is member-managed or manager-managed
- The name(s) and address(es) of either your LLC manager or each member of your LLC.
5. Create An Arizona LLC Operating Agreement
An operating agreement is not required for an Arizona LLC, but it’s a good practice to have one.
What Is An Operating Agreement?
An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.
Why Are Operating Agreements Important?
A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.
FAQ: Creating An Arizona LLC Operating Agreement
Do I Need To File My Operating Agreement With The State Of Arizona?
No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.
6. Get An Arizona LLC EIN
What Is An EIN?
EIN stands for Employer Identification Number. EINs is a nine-digit number assigned by the Internal Revenue Service (IRS) to help identify businesses for tax purposes. It is essentially a social security number for a business.
An EIN is sometimes referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).
Why Do I Need An EIN?
An EIN is required to:
- Open a business bank account
- File and manage Federal and State Taxes
- Hire employees
Where Do I Get An EIN?
You can get an EIN for free from the IRS. Getting an EIN is an easy process that can be done online or by mail.
FOR INTERNATIONAL EIN APPLICANTS: You do not need an SSN to get an EIN.
FAQ: Getting An Arizona LLC EIN
How Do I Get An EIN If I Don’t Have A Social Security Number?
A social security number is not required to get an EIN. You can simply fill out IRS Form SS-4 and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application.
What Tax Structure Should I Choose For My Arizona LLC?
When you get an EIN, you will be informed of the different tax classification options that are available. Most LLCs elect the default tax status.
However, some LLCs can reduce their federal tax obligation by choosing the S corporation (S corp) status.
7. Cost To Form An LLC In Arizona
To form an LLC in Arizona you will need to file your Articles of Organization with the Arizona Corporate Commission, which costs $50 online. You can apply online, in-person, or by mail or fax. The Articles of Organization is the legal document that officially creates your Arizona Limited Liability Company.