How to Start an LLC in Arizona

A limited liability company (LLC ) provides liability protection and tax benefits, as well as other benefits to small businesses.

It's easy to form an LLC in Arizona. Follow these seven steps and you will be well on your way to forming an LLC in Arizona.

1. Name your Arizona LLC

Before you can register an LLC, you will need to choose a name for your articles.

Names must conform to Arizona's naming requirements. These are the most important requirements you should keep in mind.

• Your business name should include the words Limited Liability Company (LLC), LLC, or L.L.C.
• You must have a name that is different from any existing business in the state. To determine if a business name is being used, you can search the website of the Secretary of State. This link will show you the availability of names in Arizona.
• The name of the business cannot include words that could be used to identify a government agency (e.g. State Department, CIA FBI, Treasury, Treasury, etc.).
• Some words are restricted (bank, lawyer or attorney, credit union, etc.). Additional documentation and licensure paperwork may be required.

Additional considerations

• Visit the IRS and the small business administration for more information
• URL availability. Even if you think you won't need one, it's likely that you will. You should at least reserve the possibility of purchasing a domain name in the future. It's a good idea not to finalize your LLC name without checking if the URL is still available.
• You can reserve your name. Names can be reserved in Arizona for up to 120 calendar days. To reserve your name, pay the fee and submit the form to the state authority.

2. Select your statutory agent

Arizona law requires that you appoint a registered agent (also known as a statutory agent in other states), to manage your LLC.

A statutory agent can be the person or entity that is authorized to receive service and other legal documents and notices for your LLC.

An individual ( , including you or your LLC), or an entity offering a registered agent service can be considered a statutory agent. These agents must meet the following requirements:

• Companies and entities must offer registered agent services.
• Arizona address must be provided by the agent.
• The agent must be present on the spot and available during normal business hours to sign documents.
• The role of the statutory agent must be accepted in writing. This can be done by completing the Statutory Agent acceptance form, which is included with the Articles of Organization.

3. Prepare and file articles for your organization

The Articles of Organization are a document that establishes your LLC and provides basic information.

To register your Arizona LLC, prepare Articles of Organization. Although it may sound like a daunting task, it is actually quite simple. All you have to do is fill out an online form and submit it. It can also be sent by mail.

The following information is necessary to prepare your articles:

• Your address and name of your LLC
• Indicates whether the LLC is a professional or regular one.
• Description of the services offered by a professional LLC
• Name and address of your statutory agent.
• Management structure: Will the LLC be managed by managers or members?
• The Articles must be signed by the person who is forming the LLC.

The secretary of state will review your filing once you have filed your Articles. The LLC is legal if the articles are approved.

4. Receive a certificate from your state

After the LLC's documents have been filed and approved by the state, the certificate will be issued by the state.

This certificate will enable the LLC to get an Employer Identification Number, business licenses, and a business bank account.

5. Make an operating agreement

An operating agreement describes the business model of your LLC.

Although Arizona LLCs do not have to file operating agreements, it is a vital part of your business. A written, easily accessible operating agreement can be helpful for many reasons. It will help you settle disputes about financial agreements or other potential litigation. The courts will make decisions based on state law and not necessarily in the best interests of the LLC or its members if there is no agreement.

The following are examples of operating agreements that can be included in an operating agreement:

• Name and address of the principal office of an LLC
• The LLC's duration
• Name and address for the statutory agent
• Information about the Articles of Organization
• The purpose of the business
• Members and their contributions
• Profits and losses will be split in the following manner:
• The procedure for admitting new members and outgoing members
• Management of the LLC
• Clauses of indemnification and liability

6. Complete publication requirements

Arizona law requires that all LLCs publish a Notice Of Formation every three weeks in an approved newspaper within the county where it is located. The notice of formation will include 1) the name of the LLC; 2) the address of the statutory agent; 3) the address of the principal business office of the LLC; 4) whether it is managed or managed by a manager; and 5) the address of each member of the LLC.

LLCs that are formed in Maricopa and Pima counties do not need to be published.

7. Register for an Employer Identification Number

To identify your LLC for tax purposes, the Internal Revenue Service assigns a nine-digit Employer ID Number (EIN). Your EIN can be obtained online or by mail through the IRS.

An EIN serves the following purposes:

• Filing and managing taxes at both the federal and state levels
• Register for a bank account in your business.
• Employ employees.

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