How To Start an LLC in Arizona

There are a few administrative hurdles you’ll have to clear before you can do business in Arizona. Don’t stress: It’s not too complicated. Every state has its own regulations for LLC formation, so you want to make sure you’re checking all the right boxes for your jurisdiction. Here’s how to set up an Arizona LLC, step by step.

Your Arizona business must have a unique name so that it doesn’t get confused with other businesses in the state. The Arizona Corporation Commission (ACC) recommends doing a Google search of your desired business name to see if it’s already in use. You can also check name availability on the ACC website.

In addition to being unique, your business name must identify the entity type, for example with the words Limited Liability Company or the abbreviation LLC. If you want to reserve a business name, you can do so for a period of up to 120 days. You’ll have to pay a $45.00 fee for name reservation online.

Every Arizona LLC is legally required to designate a statutory agent, sometimes referred to as a registered agent. The statutory agent is designated to accept official mail on behalf of the LLC, including tax notices, lawsuits, and more. The agent can be an individual or a business, including a domestic corporation, domestic LLC, or foreign corporation or LLC authorized to do business in the state.

If the statutory agent is a person, they must be an Arizona resident and at least 18 years of age. Whether a person or a business, an Arizona statutory agent must have a physical address in the state. A post office (P.O.) box is insufficient. Our selection of the best registered agent services may be useful to consider. The statutory agent must accept their appointment of the role by signing a statement of acceptance. There is no filing fee for this document.

To legally form an Arizona LLC, you must complete the Articles of Organization. You’ll have to provide information like your LLC’s business name, a description of what services it will provide, the statutory agent’s name and contact details, and the LLC’s principal address of business. Arizona also requires LLC founders to designate whether the LLC will be managed by members (“members” is the term used to refer to the LLC’s owners) or managers (non-owners).

To file the Articles of Organization, you’ll have to pay a filing fee of $50. You can submit the Articles of Organization by mailing them to the address provided on the form. Alternatively, you can deliver the documents in person. The fastest and easiest way is to submit them online. You’ll need to create an account with the ACC’s online services platform to get started.

Arizona is among the handful of states that has a publication requirement for LLC formation. This means that if your LLC is formed, meaning the Articles of Organization are accepted and approved, you have to publish news of your business formation in a publicly available forum.

The ACC warns against publishing until the Articles of Organization are approved. Note that if your statutory agent is registered at a street address in Pima or Maricopa counties, a notice will be published on the ACC’s website automatically. If your statutory agent is outside of these counties, you will need to publish your new business formation notice in a local newspaper. The approval letter the ACC sends when the Articles of Organization are processed should have details.

An operating agreement provides clarity as to how your LLC is set up and run. While it’s not legally required in Arizona, an operating agreement is still worth drafting. If you don’t have an operating agreement, Arizona’s LLC laws will govern how your business is run. For example, under Arizona law, every member in an LLC has one vote. So, if you have two members, that’s a 50/50 split. However, some LLCs may want a 60/40 split, for example if one member invests more money in the business. Voting rights are the kind of detail you can clarify in your operating agreement. An operating agreement might also cover ownership percentages, the duties of members and managers, information about holding meetings, and buy-sell and buyout procedures, among others.

A EIN is similar to a Social Security Number (SSN), except that it’s assigned to businesses instead of individuals. Your EIN will be used on all your tax paperwork and it’s also a must-have if you’re going to hire employees. The good news is that getting a EIN is fast, easy, and free. All you have to do is complete the online application with the Internal Revenue Service (IRS). Alternatively, you can apply via fax or mail, or, if you’re an international application, via phone. Note that your EIN is always free from the IRS. Beware of a company that tries to sell you an EIN. People have lost money on such scams in the past.