How to Start an LLC in Arizona

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How to Form an LLC in Arizona | Complete Guide
The Ultimate Guide

How to Create an LLC in Arizona

It's easy to create a Limited Liability Company (LLC) in Arizona, which is a great way of getting your business up and running with legal protection while protecting your personal assets. Follow our comprehensive guide to ensure a smooth and efficient process.

Key Benefits

1

Liability Protection

Shield your personal assets from business debts or legal matters. Members are not personally liable for the debts or legal matters of the LLC.

2

Tax Flexibility

Enjoy the operational flexibility of a partnership combined with the liability protection of a corporation, with favorable pass-through taxation.

3

Simple Formation

Create your Arizona LLC with just four simple steps: select a unique name, appoint a registered agent, file with the state, and publish your notice of formation.

Formation Process

Select a Distinct Name for Your LLC

Step One in establishing your LLC is picking an original name that meets the state's name requirements. It should not already be on record for another entity operating within Arizona.

  • Availability Check: Use the Arizona Corporation Commission's name search service to confirm your desired name isn't already taken.
  • Required Words: Your LLC name should contain the words "Limited Liability Company" or an abbreviation like "LLC," "L.L.C.," "Limited," or "Ltd."
  • Avoid Government Terms: Your name should not have words that imply your business is an agency of the government, such as "FBI" or "Treasury."
  • Professional Words: It should not have words or phrases calling for a specific professional license (e.g., "Engineer" or "Attorney") unless you hold the proper credentials.
  • Domain Name: Verify whether the corresponding domain name for your LLC is available, even if you don't intend to create a website right away.

Appoint a Registered Agent

Arizona law mandates that each LLC must appoint a registered agent. This is a person or business organization who receives official documents, including tax notices and service of process, on behalf of the LLC.

Self-Appointment

You have the option to be your own registered agent, as long as you have an Arizona street address and are present during normal business hours to receive official mail.

Professional Service

Most LLC owners prefer to pay a professional registered agent to maintain compliance and keep their personal details confidential.

Recommended Registered Agents

ZenBusiness

ZenBusiness is a reputable LLC formation and registered agent provider. They provide thorough solutions to keep your business compliant with state laws and offer an easy-to-use online portal.

  • Low-cost pricing and expedited LLC registration
  • Compliance notifications to keep your LLC current
  • Good customer reviews

Northwest Registered Agent

Northwest Registered Agent is another great option for LLC formation and registered agent services. Praised for its top-notch customer service, Northwest provides a safe online portal to organize your LLC's documents.

  • Affordable pricing that begins at $125 for registered agent services
  • A+ Better Business Bureau rating
  • High level of emphasis on customer data security

File with the State

To officially create your LLC, you have to file the Articles of Organization with the Arizona Corporation Commission (ACC). It costs $50 to file.

Online Filing

For online filing, go to the Arizona Corporation Commission's website. This is typically the fastest method to form your LLC.

Mail Filing

If you decide to file by mail, send the filled-in form to:

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

Processing Time and Fees

  • Standard Filing Fee: $50
  • Processing Time: Regular processing may take 7-10 business days
  • Expedited Processing: Available for additional fees ranging from $35 for 5-day processing to $100-$400 for same-day or next-day processing

Publish Your Notice of Formation

In Arizona, state law mandates that you advertise a Notice of Formation in an authorized newspaper in the county where your LLC is situated.

  • Publication Requirements: The notice must be run for a minimum of 3 consecutive weeks
  • Content: The notice must include basic details about your LLC, such as the name and the statutory agent's address
  • Timeframe: Publication can be completed within 60 days of forming your LLC
  • Affidavit: Once published, the newspaper will give you an affidavit of publication, which you will need to file with the Arizona Corporation Commission

After Formation

Once your LLC is registered in Arizona, take these important steps to maintain good standing and protect your business:

Separate Business Finances

Open a business bank account to separate business and personal finances. This will preserve your LLC's liability protection and aid in tax reporting.

Onboard an Accountant

An accountant will assist in ensuring your LLC remains tax compliant, reduces tax burdens, and assists with financial oversight. This is particularly necessary if your LLC has several employees or members.

Consider Business Insurance

Business insurance, including general liability or professional liability insurance, can cover your LLC from financial loss because of lawsuits or claims. Moreover, if you have employees, workers' compensation insurance is required in Arizona.

Remain Compliant

Arizona LLCs have to file an annual report, due annually on the anniversary of your LLC's date of formation. Be sure to make this report timely in order to keep your LLC in good standing with the state.

FAQs

What is the fee to create an Arizona LLC?

The Articles of Organization filing fee is $50. There may be extra fees if you opt for expedited processing or use a registered agent service.

Do I need a Trade Name (DBA) for my LLC?

In Arizona, your LLC does not require a "Doing Business As" (DBA) name unless you have a plan to do business using a name that is different than your legal LLC name. In that case, you will want to file a Trade Name with the state.

How long will it take to process my LLC formation?

Normal processing time is generally between 7-10 business days, but there are expedited services available. The expedited processing charge ranges from $35 for 5-day processing to $100-$400 for same-day or next-day processing.

Is publication required for all Arizona LLCs?

Yes, Arizona law requires all LLCs to publish a Notice of Formation in an approved newspaper in the county where the LLC is located. This must be done within 60 days of forming your LLC and run for 3 consecutive weeks.

Ready to Start Your Arizona LLC?

Take the first step toward establishing your business with the protection and benefits of an LLC structure. Our comprehensive guide makes the process simple and straightforward.

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