How to Form an LLC in Arizona

Choose a unique name for your LLC

All new LLCs need a name that is unique to them. This name must include “LLC,” either entirely written out or abbreviated. 

Picking a good name will help it stand out from the competition. Make sure it is easy to remember and search for.

You can choose to reserve your future business’s name for 120 days. This hold is non-renewable, with a $45 fee as of 2024.

You can check if the name is available on the Arizona Corporation Commission website.

Hire a statutory agent

Statutory agents receive and inform you of any legal documents for your LLC. This person must be an Arizona resident or a company allowed to do business in Arizona. They must also be available during regular business hours.

Be sure your agent is someone who you trust with sensitive information. This person could be a close friend, professional, or even yourself. Most businesses hire a professional to avoid mistakes.

File your Articles of Organization

All LLCs must submit the Articles of Organization to tell the government about your company. As of 2024, this form has a filing fee of $50 for LLCs in Arizona. If needed, you can also choose to expedite the processing of this form for an extra $35.

Once the Articles of Organization are filed, each business must publish its company’s information in a newspaper or database. Business owners must do this within sixty days of submitting the files.

Create an operating agreement

An Operating Agreement describes the roles and responsibilities of each member and how to make business decisions. Operating agreements create a detailed outline so the business runs smoothly.

Even though this document is not a requirement according to Arizona law, having one is a good idea to help prevent disagreements among members.

Obtain your Employer Identification Number (EIN)

Employer Identification Numbers are government-assigned and used to identify your business. This number is required for business owners to file taxes and open bank accounts. Having the ability to open business bank accounts helps protect your funds from any legal problems that may occur in the future.

You can obtain your EIN quickly and for free through the IRS’s website.

Register for state taxes

Depending on what type of business you are running, you might need to register for state taxes. Arizona requires that all LLCs that sell goods or services pay a Transaction Privilege Tax. Other taxes that business owners may need to pay include employment taxes and property taxes.

Check with the Arizona Department of Revenue to see if you need to register for state taxes.

Obtain business licenses

The city or county where your business is may require purchasing a business license. Many cities and counties in Arizona require businesses, including LLCs, to at least have a general business license. 

Other licenses that may be required will depend on the company’s industry. Be sure to check with your local government for specific requirements and prices.

• Protection for personal assets: One significant benefit is that an LLC helps protect your assets. Your personal belongings are safe if your business encounters any problems or debts.
• Tax benefits: LLCs are considered pass-through entities in Arizona. All tax responsibilities are placed on the individual members rather than the corporation. LLCs can also choose the business entity the government taxes them as, providing further benefits.

• Flexible management: An LLC offers flexibility in how you manage your business. This type of business can be run solo or by multiple people.
• Professional appearance: Forming an LLC can make your business look professional, serious, and well-organized. This professionalism can also bring in investors and help companies to get loans more quickly.