Maybe the time has come when you think it’s paramount to form an LLC for your business in Arizona. It’s always a solid recommendation to file the Articles of Organization, costing $50 with the Arizona Corporate Commission. This legal document can be filed online, in-person, or by mail or fax at no additional fee. It’s as simple as it sounds.
Here are the six steps to adhere to when forming an Arizona LLC. Read on!
- Select an Arizona LLC Name
Ensure that the name you want to give your company is available by performing a quick search on the Arizona eCorp website. Check also its web domain availability to acquire an URL that matches your business name if you ever come to create a website for your business. And now, you can select an LLC name for your Arizona business.
These are the naming rules for an Arizona LLC.
- A company name includes; Limited Liability Company, L.L.C., LLC, Company, Co, Limited, or Ltd.
- A name that doesn’t mention any government agency like the FBI, Treasury, etc.
- Some words such as Attorney, Bank, and University may require additional approvals from the state to be a part of your LLC name.
- Choose a Statutory Agent in Arizona
In most states, a statutory agent is referred to as a registered agent, and it’s advisable to select one when forming an LLC in Arizona.
What is a Statutory Agent? – A statutory agent is a company or an individual that acts on behalf of a business entity to send and receive official and legal documents. And the statutory agent must be a resident or have a physical address in Arizona, with the authority to conduct business in the state.
Appointing a statutory agent is a significant step towards a successful business formation with all state’s laws observed.
- File the Articles of Organization for Your Arizona LLC
The Articles of Organization is the same document you can find in other states called the Certificate of Organization or the Certificate of Formation. This document can be filed online, in-person, or by mail with the Arizona Corporation Commission.
The Arizona Articles of Organization filing fee is $50 non-refundable and payable to the relevant state agency.
A bit of information in your Articles of Organization includes:
- Name of your LLC.
- A statutory agent – name, address, and signature.
- List of services to offer
- How your LLC will be managed (either manager-managed or member-managed).
- Pay the state filing fee.
On approval by the state, the Articles of Organization becomes a public record.
- Complete Publication Requirements for Arizona
Within 60 days of formation, all newly formed LLCs in Arizona must publish a Notice of LLC Formation on an approved newspaper for three consecutive weeks. Its cost depends on the county in which your business is located, but ranges from $30 -$300.
There are several exceptions to this requirement for businesses that have listed Pima or Maricopa as their principal address. Such businesses won’t publish a Notice of LLC Formation.
A Notice of Formation includes almost the same information on the Articles of Organization.
- Create an Operating Agreement for Your Arizona LLC
With a statutory agent, you can develop an Operating Agreement that touches on almost every aspect of your business for future references.
What is an Operating Agreement? It’s a legal document outlining the ownership and the structure of an LLC. It limits problems arising in the future and ensures everyone is on the same page when forming an LLC.
An Operating Agreement is inclusive of:
- The owner of the company.
- The investors and other members.
- How it will be managed.
- Day-to-day operations and who is responsible for managing them.
- How future problems or conflicts should be resolved.
- How profits are shared, etc.
- Apply for an EIN
Get yourself an EIN (Employer Identification Number) to start business operations for your Arizona LLC. This is the same as FTIN (Federal Tax Identification Number) or FEIN (Federal Employer Identification Number).
What is an EIN? – It’s a 9-digit number issued by the IRS (Internal Revenue System) that identifies a business entity and keeps track of its tax reporting. In other words, it can also be referred to as an SSN (social security number) for the company.
An EIN helps you to:
- Open a business bank account.
- File both federal and state taxes for your business.
- Hire employees for the company.
Benefits of Starting an Arizona LLC
Designating a statutory agent when forming an LLC in Arizona gives you ample time to continue running your business for better growth.
Here are some benefits:
- Business credibility.
- Personal asset protection.
- Pass-through taxation.
- Ease of maintenance.
- Flexible management structure.
- Easy access to business loans.
FAQ About Starting an Arizona LLC
What is an LLC? – It stands for Limited Liability Company and has a simple business structure as compared to a traditional corporation.
Can I Be my Own Statutory Agent? – Arizona allows individuals to act as their own statutory agent if they have a physical address.
How Long is the Processing Time of Starting an LLC in Arizona? – This is a busy state, and the processing time can take up to 30 business days. Feeling impatient, then pay an additional fee for an expedition.
Will I Be Filing an Operating Agreement with The Arizona State? – No, this document is for the sole purpose of future reference in your organization.
Do I Need an SSN to Get an EIN? – An EIN application is a simple as filing Form SS-4 with the IRS.
An Arizona LLC opens up your business to more economic opportunities in the state itself, and the neighboring ones. And with the right statutory agent, you can secure a better future for your business by forming an LLC with our six steps above. The decision is always yours at this point.