The Hoover Dam. University of Phoenix and the Grand Canyon. Arizona is known for many things including the stunning red rocks of Sedona.
You’ve finally decided to go for it, and now you’re curious about how to establish a limited liability company in the state of Arizona. But what should we do after that? Also, how much will it set you back? Below we’ve outlined the key steps and fees that must be paid and the paperwork that is necessary for Arizona firms.
In addition to its many other advantages, a limited liability corporation (LLC) provides small enterprises with protection from legal responsibility and favorable tax treatment. Follow these easy steps for getting your Arizona limited liability company up and going after you’ve decided that a Limited company is the most suitable form of business for your requirements.
Note that you have the option of forming the limited liability company (LLC) yourself, or you may choose a professional company firm to do all of the legwork on your behalf.
1. Naming of Your Arizona LLC
When choosing a name for a limited liability company (LLC) inside the state of Arizona, there are some key rules that must be followed:
- The name of the limited liability company (LLC) must be distinguishable from those of already existing businesses that are registered with the Arizona Corporations Commission.
- The phrase “Limited Liability Company” or one of the acronyms “LLC”, “L.C. “, “LC”, or “L.L.C.” must be included in the name of the limited liability company (LLC).
- In Arizona, the names of professional limited liability companies (LLCs) are required to contain the words “professional limited liability company” or one of the following abbreviations: “PLC”, “P.L.C. “, “PLLC”, or “P.L.L.C.”
LLC name reservation with the Arizona Corporations Commission
Check the availability of the name you’ve chosen for your limited liability company (LLC) online by utilizing the business name database maintained by the Arizona Corporations Commission.
In the event that the name is not taken, you may submit an Application to Reserve your LLC Name to the Arizona Corporations Commission in order to place a reservation on it for a period of up to one hundred and twenty days.
You have the option of submitting the application either online or in the mail. The charge to file paperwork in the mail is just $10, whereas the fee to file paperwork online is $45.
Using a company moniker in one’s professional endeavors
Arizona LLCs may conduct business using a trade name or “DBA” name rather than their official name in the LLC Articles of Organization.
In Arizona, doing business while using a trade name is not required to be registered with the state; nevertheless, the Arizona Secretary of State’s office does provide the possibility of registering a trade name digitally for a filing cost of ten dollars.
2. Choose a Statutory Agent to represent you
In order for legal documents to be served within the state of Arizona, each limited liability company (LLC) is required to have a Statutory Representative, which is also referred to as a Registered Agent. If the limited liability company (LLC) is taken to court, this refers to a person or company that has agreed to accept service of process on its behalf.
An Arizona citizen or a legal business organization that is permitted to conduct operations in the state may serve as the Registered Agent. It is required that the Registered Agent have a real, live street address in the state of Arizona.
What exactly is the role of a Registered Agent?
A Registered Agent is an individual or corporate body that is accountable for receiving essential tax forms, official papers, notice of civil suits, and official correspondence from the government on behalf of your company. This can include tax documents, legal papers, notice of court cases, and official communications. Consider the role of your registered agent as that of the point of contact for your company with the state.
Who qualifies to act as a Statutory Agent?
A Statutory Agent is required to be either a person who lives in Arizona on a permanent basis or a company that is registered to do business within the state of Arizona.
An example of the latter would be a Registered Agent service. You have the option of selecting anybody who works for the organization, including yourself.
3. Publish your company’s articles of incorporation
Your limited liability company (LLC) will be formally recognized after you have a document called the Articles of Organization that lays forth fundamental information about your business. Because this form serves as the legal registration for your company with the state, it is essential that all of the details be accurate.
What should be included in a company’s Articles of Organization?
When completing the Articles of Organization for your Arizona LLC, you are required to give the following information:
- LLC’s name
- LLC’s duration—perpetual or limited
- The location of the main office of the limited liability company.
- The name and location of the registered agent for the limited liability company
- Location where the State Secretary should send notifications to the limited liability company (LLC) through mail.
- How the Limited Liability Company (LLC) will be run: by its members or by its managers
- Whether or whether the limited liability company will provide business services
- Names and addresses of all of the organizers of the limited liability company, as well as
- The contact information of a member or manager who has firsthand experience with the LLC’s daily activities.
Submission of Your Organization’s Articles of Incorporation
You will need to submit the following paperwork to the Arizona Corporation Commission in order to register your Arizona limited liability company (LLC):
- The Articles of Organization on Form L010
- Arizona Corporate Commission Cover Sheet
- Acceptance of the Statutory Agent
- Attachment to the Structure as a Member or Manager
You have the option of applying in person, online, or via the mail.
LLCs that have been founded in another state but want to do business in Arizona are needed to file with Arizona’s Corporations Commission in order to do so.
You will be required to submit an Application for Registration of a Foreign Limited Liability Company by mail, together with a payment of the filing fee in the amount of $150 and a certificate of existence from the state in which the LLC was first formed.
4. Obtain a Certificate from the State
After the formation paperwork of the LLC has been submitted and authorized, the state will issue you a certificate that proves the LLC officially exists. If you ask for a copy and pay appropriate mail costs, the state will send out the certificate to you.
5. Draft an Operating Agreement for Your Company
Even while establishing a detailed LLC operating agreement is not a legally required step for founding a limited liability company in Arizona, it is highly suggested for all new limited liability firms to do so.
The following items should be included in the operating agreement:
- Describe the business structure of the limited liability company.
- Determine the specific roles and responsibilities that each member of the LLC will have.
- Describe in detail how the limited liability company will be operated.
Significant legal and logistical challenges might await a limited liability company (LLC) in the absence of an operating agreement that defines the precise responsibilities of its members.
6. Obtain a number that identifies you as an employer (EIN)
A number of limited liability companies (LLCs) will be required to get a Federal Employer Identification Number (EIN), often known as a tax ID number.
An Employer Identification Number (EIN) is a nine-digit number that identifies your company to the Internal Revenue Service. You need an EIN in order to pay national employer taxes, obtain a banking account, or recruit staff.
On the website of the Internal Revenue Service (IRS), which is accessible without charge, you may check to see whether you require an EIN and submit an application for one online.
Single-member limited liability companies, which are an exemption to the rule that most firms are required to acquire an EIN, may instead use the owner’s Social Security number.
Depending on the kind of company they run and where they are located in Arizona, certain limited liability companies (LLCs) may be needed to get one or more business permits or permissions from the state or from their respective municipal governments.
Refer to the Arizona Department of Commerce Licensing Guide for information on state licensing. Contact a municipal or district clerk in the city or municipality where your limited liability company (LLC) is based to get information on the local licensing requirements.
Taxes levied by the states
Taxes collected by the state In some circumstances, such as if you want to engage in the sale of products and the collection of sales tax or if you intend to have workers, you will be required to register your business with the Arizona Department of Revenue (DOR).
You have the option of registering electronically or on paper (the Arizona Joint Tax Application, Form JT-1/UC-001).
7. Yearly renewals
Arizona is one of the few states that does not mandate limited liability companies (LLCs) to submit yearly reports with the state’s Corporation Commission. This alleviates the burden placed on owners of Arizona limited liability companies to keep track of the filing deadline and the annual state filing costs.
What are the fees and next steps?
The costs associated with establishing a limited liability company in the state of Arizona may vary anywhere from fifty dollars to one hundred thirty dollars, depending on considerations such as whether or not you wish to register your company or accelerate your filing.
Please be aware that fees are subject to change, and as a result, you should visit the website of the Arizona Corporation Commission in order to get the most current fee schedule.
Consider the following additional fees that may be incurred by an LLC:
- LLC name reservation
- DBA name is short for “doing business as.”
- Certified document copies
- Proof of existence (certificate)
When you register a limited liability company (LLC), you establish a legal basis upon which to operate your firm. Companies should make it a priority to maintain their limited liability company in compliance with state regulations and in an active position on the government’s website.
In addition, having a registered limited liability company enables you to perform the following:
- Register your company with the department of revenue in your state.
- Create a bank account for your company.
- Create a credit card account for your company.
- Invest in insurance coverage for your company.
- Create a trademark to protect both your company’s name and its logo.
- Obtain any permissions or licenses that are required to run your business, such as those issued by the health department, the zoning department, the department of home occupations, the department of professional licensing, and so on. Some states need a seller’s permission to conduct sales
LLC setup via DIY or services firm?
To establish a limited liability company (LLC), you are not required by law to consult a lawyer. The majority of states enable the establishment of LLCs via the process of registering the business entity on the website of the secretary of state along with the Internal Revenue Service (IRS).
If you are not acquainted with the process of forming an LLC, your best bet may be to hire a professional LLC formations provider so that you can be certain that the creation will go smoothly and quickly.
When entrepreneurs start a new firm, they may save startup costs and save valuable time by using a professional agency that specializes in company forms. They can take care of the things that you might not have enough time to think about for a price ranging from $50 to over $500, and some examples of such things are as follows:
- Putting together a limited liability corporation operating agreement that explains your organization’s key details, persons involved and mode of operations.
- Putting together articles of incorporation that identify the management of the LLC, the registration agent, and the date the company was formed.
- Taking up the role of registered agent for your firm.
- Keeping careful records in the event that there are investigations or litigation.
- Payment of filing fees and registration with the appropriate parties.
- Registering the name of your firm and ensuring that the name you choose for your limited liability company is accessible.
- Finishing up and turning in all of the necessary legal and formation documentation.
How much does it cost to form an LLC in Arizona?
The cost of forming a limited liability company (LLC) in Arizona may range anywhere from $50 to $130, depending on variables such as whether or not you want to reserve your business name and whether or not you wish to expedite your file. You have the option of filing your Articles of Organization either via the mail or online.
How lengthy is the process of setting up an LLC in Arizona?
In Arizona, forming a limited liability company (LLC) may take anywhere from one to two days if the Articles of Organization are filed online, but can take anywhere from four to five weeks if they are filed by mail.
How can I form an LLC in Arizona?
In order to establish a limited liability company (LLC) in the state of Arizona, you will need to pay the registration fee, choose a name for your LLC, appoint a Statutory Agent, draft Articles of Organization, draft an Operating Agreement, and get an EIN number from the Internal Revenue Service.
Tom is the founder of Gottagrow.io. He reads the offers, deciphers the details including features, pricing, included services and more to find you the best products and services.