How to Start an LLC in Arizona

Here are the 7 steps to start a limited liability company (LLC) in Arizona

For more information on how to form an LLC in any state, see the article How to Form an LLC.

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Learn about Arizona LLC formation, including information on Registered Agents, naming rules, business licenses, and more.

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how to start an llc in arizona

Creating an LLC in Arizona

A limited liability company (LLC) offers many benefits to small businesses, including liability protection and tax advantages.

A Limited Liability Company need to be formed in Arizona by filing the Articles of Organization with the Arizona Corporate Commission and paying the $50 of filing fee online.

However, you’ll first need to choose a name and registered agent for your Arizona LLC. The formation of an LLC may take up to 21-25 business days unless you pay an additional $35 for expedited processing (7-9 days).

An LLC can be easily formed in Arizona. Our step-by-step guide on how to start an LLC in Arizona will help you get started today Find out more about LLCs and their benefits in our What is an LLC guide

Step 1. Choose a Name for Your LLC Arizona

Creating an LLC in Arizona requires you to choose a business name before you can file a Articles of Organization. Be sure that your business name complies with the Arizona naming requirements and can be searched by potential customers.

  • Arizona law requires an LLC name to contain the words “Limited Liability Company” or “Limited Company,” or the abbreviations “Ltd.,” “LLC,” or “LC.” “Limited” may be abbreviated as “Ltd.” or “LTD,” and “Company” as “Co.”
  • It is not acceptable for your Arizona LLC to have words associated with a government agency (FBI, Treasury, State Department, etc.).
  • You should avoid using words or abbreviations that may make your LLC Arizona appear to be a different type of entity, such as “LP” or “corporation”.
  • There may be additional documentation and licensure paperwork required for certain restricted words (bank, lawyer, attorney, credit union, etc.).
  • Check the state’s business name database to ensure the name you want is not already taken(including businesses no longer in operation)

See a complete list of Arizona naming rules here.

Check URL availability: You are likely to need a web page even if you don’t think you do. Buying your domain name now will at least give you the option of having one in the future. It’s a good idea to check the URL availability before finalizing your Arizona LLC name.

Recommended: Consider setting up a business phone service after securing a domain name for your Arizona LLC to establish credibility and improve customer satisfaction.
 
Wise business plans offer a variety of features for businesses, including Toll-free numbers, Coverage in US and Canada, team messaging and more. Try our business phone services today.
Is it possible to reserve a business name in Arizona?

By filing an Application to Reserve Limited Liability Company Name with the Arizona Corporation Commission, an available name can be reserved for 120 days (available on the Corporation Commission website). The form can be filled out and submitted online or by mail. If you file by mail, the fee is $10; if you file online, the fee is $45 ($10 filing fee plus $35 expedite fee).

What is an LLC?

An LLC stands for a Limited Liability Company. A simple business structure that is more flexible and offers many of the same benefits as a traditional corporation. For more information, see “What is a Limited Liability Company?”.

Does my business need a DBA or trade name?

In Arizona, this is known as a trade name, while in other states, it is known as a DBA (doing business as). The state of Arizona does not require the registration of a trade name or DBA in order to conduct certain types of business under that name.

Step 2: Appoint Your Statutory Agent in Arizona

Your next step in forming an LLC in Arizona is to appoint a Registered Agent, an individual or company authorized to receive legal and state mail on your behalf.

All Arizona LLCs must have a registered agent. Please include your registered agent’s name and address on your Articles of Organization.

Statutory Registered Agent Requirements in Arizona

To comply with Arizona law, your LLC’s registered agent must be a resident or business entity that maintains a physical address in Arizona. The “registered address” cannot be a P.O. box. It must be a real physical address that can be visited in person.

Further, in Arizona, your registered agent must agree to perform this role and sign a form confirming their consent. Consent statements should include the following:

  • Written confirmation that the person designated consents to serve as the LLC’s registered agent
  • The name of your Arizona LLC and the person designated as your registered agent
  • Registered agent’s signature
  • Date of execution

Although you do not have to submit this form to the Secretary of State, your business must record it. Learn more about Arizona Registered Agents by reading our full guide.

Who can be a statutory agent?

A statutory agent must be an Arizona resident or a corporation authorised to conduct business in Arizona, such as a registered agent service. You have the option of electing someone from your company, including yourself.

Is it possible to change my registered agent after I form an LLC?

When filing an amendment or Form LL: 0006, Limited Liability Company Statement of Address Change and Statement of Statutory Agent Change with the ACC, LLCs can change their statutory agent. The appointment must be accepted by your Arizona statutory agent.

Are You looking for a Registered Agent?

Wise Business Plans offers a free year of registered agent service when forming an LLC in Arizona.

Step 3.Prepare and File the Articles of Organization

To create a Arizona LLC, you will need to file Article of Organizatin Articles of Organization with the Arizona Division of Corporations.

You may apply online, by mail, or in person.

There is a $50 filing fee. You must send the original and a copy of your certificate if you file by mail.

You will receive a duplicate form back from the state once it receives your documents.
It may take up to 3 weeks to process a mailed submission.

If you choose one of our business formation services, we can handle this step for you.

The following information is typically required to create a Articles of Organization:

  • Your LLC name and principal place of business.
  • Name, address, and signature of the LLC’s registered agent
  • Decide whether your Arizona LLC will be member-managed or manager-managed. Indicate the names and addresses of each member and manager.
  • The reason for forming the LLC in Arizona.
  • Name and address of the LLC’s organizer.
  • The effective date of the certificate,
  • The person forming the LLC must sign the Certificate.

Foreign LLCs: To qualify as a foreign LLC, you must appoint an Arizona statutory agent to accept service of process on your behalf. A statutory agent is required to have a physical address in the state.

There is no need to file an annual report after forming a foreign LLC in Arizona.

The total cost of filing is $150. To qualify as a foreign LLC, you must appoint an Arizona statutory agent to accept service of process on your behalf. A statutory agent is required to have a physical address in the state.

A filing fee of $150 also applies to this form, and you need to attach your state’s certificate of good standing.

Two Ways to File the Articles of Organization

The 1st option is:

Online filing through the Arizona Department 

The 2nd option is:

Filing the Articles of Organization by Mail or In Person

 Form L010 – Articles of Organization
– Form M002 – Statutory Agent Acceptance
– Form L040 (Manager) OR Form L041 (Member)

– Cover Sheet

There is a state filing fee of $50 payable to the Arizona Department of State. (nonrefundable)

Address

Arizona Corporation Commission
Corporate Filings Section
1300 W. Washington St.
Phoenix, AZ 85007

How does a member-managed LLC differ from a manager-managed LLC?

In a member-managed LLC, the members (owners) take on the business’s daily responsibilities. Manager-managed LLCs are managed by managers who are elected by the members. Those who manage your LLC will have the authority to do a wide range of tasks-from hiring staff to opening bank accounts.

How do Arizona LLCs differ from foreign LLCs?

When an LLC conducts business in the state where it was formed, it is called a “domestic LLC”. We normally refer to an LLC as a domestic LLC when we talk about it. When an existing LLC wishes to expand its business to another state, it must form a foreign LLC.

How long does it take to form an LLC in Arizona?

The formation of an LLC may take up to 21-25 business days unless you pay an additional $35 for expedited processing (7-9 days).

Step 4. Get a Certificate From the State

Upon filing your Articles of Organization, the secretary of state will review it. As soon as the Articles of Organization is approved, the LLC becomes a legal entity.

By obtaining this certificate, LLCs will be able to obtain an Employer Identification Number (EIN), licenses, and business accounts.

Step 5. Write an Arizona LLC Operating Agreement

An operating agreement is a legally-binding document that sets out how your LLC will operate, from the voting process to mergers.

Operating agreements are not required in Arizona, but they are an essential part of your business.

Written operating agreements are helpful for different reasons, including resolving disputes over financial agreements and other potential litigation.

The LLC declaration can prove that your LLC is a separate entity, which can help preserve your limited liability.

An operating agreement ensures that all business owners are on the same page and reduces the possibility of future conflict.

How should an operating agreement be drafted?

The operating agreement should detail the LLC’s overall business purpose and other important matters, such as how the company will be taxed and how new members will be accepted. Legal agreements can clarify several important concerns, such as:

  • Who makes decisions for the company, especially those who decide if partners disagree.
  • Who is responsible for different aspects of the business as well as for strategic decisions.
  • If a partner leaves the company, what will happen to their ownership interests in the corporation.
  • The members and their contributions
  • How profits and losses will be divided
  • Procedures for admitting new members and removing outgoing members

In Arizona, you can include just about anything in your operating agreement, as long as it doesn’t violate the state law or the Articles of Organization.

Should a single-member LLC have an operating agreement?

A single-member LLC in Arizona is treated the same as a multi-member LLC for most purposes. In Arizona, the steps to form a single-member LLC are the same as those outlined above.

When it comes to filing a tax return, single-member LLCs have more options.

Is my operating agreement required to be filed with the state of Arizona?

Arizona does not require LLCs to have operating agreements, but it is highly advisable to have one. An operating agreement will help protect your limited liability status, prevent financial and managerial misunderstandings, and ensure that you decide on the rules governing your business instead of state law by default.

Step 6. Get an EIN for Your Arizona LLC

Basically, an employer identification number (EIN) is a social security number for your LLC in Arizona.

To identify your LLC for tax purposes, the Internal Revenue Service assigns a nine-digit Employer Identification Number (EIN). You can apply for your EIN either by mail or online.

An EIN is used for the following purposes:

  • Manage state and federal taxes
  • Create a business bank account
  • Hire employees

Get an EIN Number in Arizona

Getting an EIN number is easy and free, There are two ways to get an EIN number in Arizona.

The 1st option is:

Apply online for an EIN from the IRS

The 2nd option is:

Get an EIN by Mail or Fax

Address to Mail

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

 Is a Arizona LLC required to have an EIN?

For LLCs that will have employees, an EIN is required. In addition, in order to open a business bank account, most banks require an EIN. Tax identification number issued by the state. A state tax identification number is not required in Arizona.

 What is the best tax structure for my LLC?

A tax classification will be discussed with you when you obtain an EIN. In most cases, LLCs choose the default status.
Some LLCs can reduce their federal tax obligation by electing S corporation status. Consult with a local accountant to find out which option is best for you.

What if I already have an EIN for my solo proprietorship?

When a sole proprietorship changes to an LLC, the IRS demands that a new EIN be assigned.

Step 7. Complete Publication Requirements

For LLCs based in Maricopa or Pima counties, there is no requirement to publish in the newspaper. The Corporations Commission automatically satisfies the publication requirement by publishing LLCs formed in these counties on its website.

 A Notice of LLC Formation must be published within 60 days after the Corporations Commission approves the filing of your LLC’s Articles of Organization for LLCs based in other counties.

What should my Notice of LLC Formation contain? The following information must be made public:

  • The name of your limited liability company.
  • Your Statutory Agent’s name and street address.
  • The LLC’s principal place of business address (if different from that of the Statutory Agent).
  • Whether your LLC is managed by members or by a manager.
  • The name(s) and address(es) of your LLC manager(s) or each LLC member(s).

The Arizona Corporation Commission’s Corporations Division has compiled a comprehensive list of newspapers organised by county.

Fee:  The fee varies by county. It typically costs between $30 and $300. It is nonrefundable.  

Are you Looking for Arizona LLC Formation Service?

Get the easiest and fastest Arizona LLC formation online with Wise business Plans.

What to do After Forming Your Arizona LLC

Keep your personal and business assets separate

Your personal assets (such as your home, car, and other valuables) may be at risk when your Arizona LLC is sued if they are mixed with your business accounts.

Here are some steps you can take to protect your LLC in Arizona:

 

1. Create a Business Plan:

If you decide that a Arizona LLC will be a good choice for your business in Arizona, your next step is to create a business plan (although it is not required), so that you have a roadmap for what you will do and how you will accomplish it.

Business Plan Template

Free: Business Plans Examples

Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.

2. Open a Bank Account

As soon as your LLC is officially formed, you should open a business bank account. Why? Keeping separate bank accounts will help you maintain the legal distinction between the LLC and you (the owner).

Because LLCs are limited liability companies, creditors and litigants can’t take your assets.

It is essential for small business owners to partner with the right bank. Find out which banks offer the best business checking accounts, have low or no fees, ATM accessibility, and interest-earning accounts as well as online or mobile banking tools. 

Recommended: Check out our business bank account page to learn which banks offer the best business check accounts, ATM access, interest-bearing accounts, and online and mobile banking options for businesses.

3. Obtaining a business credit card:
  • Allows you to separate personal and business expenses.
  • Develops your company’s credit history, which can be helpful to raise capital (e.g., small business loans) later.
4. Hiring a business accountant:
  • It prevents your business from overpaying taxes while preventing penalties, fines, and other costly tax mistakes.
  • Gives you more time to focus on your growing business by simplifying bookkeeping and payroll.
  • Manage your business’s funding more effectively. Find out where extra profit or loss can be made

Getting Business Insurance for Your LLC

You can manage risks and grow your LLC with business insurance. Here are the most common types:

  • General liability insurance protects your business from lawsuits. Most small businesses purchase general liability coverage.
  • Professional liability insurance protects professionals and businesses from claims of negligence from their clients or customers. Liability insurance typically covers negligence, copyright infringement, personal injury, and more.
  • Workers’ compensation insurance: Covers illnesses, injuries, and deaths resulting from a worker’s work.

Ready to Protect Your Business

Let us help you with your business insurance needs.

 

  • General business liability insurance
  • Medical insurance
  • Term life insurance
  • Workers’ Comp
  • Surety bonds
  • Commercial auto

Create Your Business Website

A website is an important step in legitimizing your business. It is essential for all businesses. You are missing out on a large percentage of potential customers and revenue if you don’t have a website, even if your business is too small or in an offline industry.

More than 90% of consumers begin their search for products and services online. If you don’t have a website that is ready to welcome your customers, then they will simply find your competitors.

Here are the main reasons why you shouldn’t delay building your website:

  • Every respectable firm has a website. When it comes to getting your firm online, size or sector isn’t a concern.
  • Creating a basic website has never been easier, thanks to website builder tools like the GoDaddy Website Builder. To design a website, you don’t need to hire a web designer or developer.

Recommended: If you want to enhance your conversion rates and maximize revenue in order to help expand your business and meet objectives, you should always hire a professional business website design company to build your business website.

Wise Business Plans is a leading web design company, We have created over 2000 + websites across 20 countries for our clients but we are physically based in 7 major cities in the United States including Alabama web design, Pennsylvania, Las Vegas, Colorado Springs, Iowa, Michigan and San Diego.

Arizona LLC FAQs

How much does it cost to form an LLC in Arizona?

The Articles of Organization must be filed with the Arizona Corporations Commission for a fee of $50. Expedited processing costs an additional $35.

Is it a good idea to form an LLC in Arizona?

For small businesses, a limited liability company (LLC) provides liability protection as well as tax advantages. In Arizona, forming a limited liability company (LLC) is easy.

How long does it take to form a Arizona LLC?

The formation of an LLC may take up to 21-25 business days unless you pay an additional $35 for expedited processing (7-9 days).

What is the procedure for dissolving an LLC in Arizona?

To dissolve your LLC in Arizona, send the Arizona Corporation Commission (ACC) the completed Form LL: 0020 Articles of Termination by mail, fax, or in person. A cover sheet is required in Arizona and should be included with all filings. The Termination Articles and Coversheet are both available online.

Is it possible to change the name of an LLC in Arizona?

You will need to file an Articles of Amendment form with the Arizona Corporation Commission, Corporations Division, to successfully amend your Articles of Organization for an Arizona LLC. A cover sheet and a $25 filing fee are also required.

Is it possible to hire a professional writer to form an LLC in Arizona?

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