How To Get An LLC In Arizona In 7 Easy Steps

Overview

Getting an LLC in Arizona involves a straightforward process. Below, we’ll guide you through the essential steps and provide factual answers to common questions.

How To Get An LLC In Arizona: Step-By-Step

1. Choose a Name for Your LLC:
   • Choose a unique and available name for your LLC.
   • Perform an Arizona LLC name search through the Arizona Corporation Commission website.
   • Reserve your chosen name if needed.
2. Registered Agent:
   • Appoint a registered agent with a physical address in Arizona.
3. File Articles of Organization:
   • Complete the Arizona LLC Articles of Organization form.
   • File online through the Arizona Corporation Commission website or submit a paper application.
4. Announce Your LLC:
   • If you’ve formed an LLC in Arizona, you must publicly announce the formation within 60 days after the organization. 
5. Operating Agreement:
   • Draft an operating agreement outlining the structure and operation of your LLC. Although not required by the state, it is highly recommended.
6. Employer Identification Number (EIN):
   • Obtain an EIN from the IRS for tax purposes.
7. File the Beneficial Ownership Information Report:
   • Beginning in 2024, Arizona LLCs must submit a Beneficial Ownership Information (BOI) Report.

1. Choose A Name For Your LLC

Check if the name you desire for your Arizona LLC is available in the state. This is important because no two businesses in Arizona can share the same name.

To do this, use the Arizona Corporation Commision’s search tool to compare your business name with existing ones in Arizona. 

Make sure your LLC name is unique by following Arizona’s naming rules to increase the chances of your LLC name being approved.

If you need, you can reserve the name for your LLC for up to 120 days. The cost is $10 by mail ($45 if filed online).

2. Appoint Registered Agent 

In Arizona, you need to choose a registered agent for your LLC, also referred to as a statutory agent. This is the person or company allowed to get legal papers and important notices on behalf of your LLC.

Your registered agent can be a person, like yourself or one of your employees, or a company that offers this service.

The registered agent has to meet some requirements:

• If it is a company, it must offer registered agent services.
• The agent must have an address in Arizona.
• The agent must be there in person and ready to get documents during regular business hours.

3. File Arizona LLC Articles Of Organization

To officially establish your Arizona LLC, you need to file the Arizona LLC Articles of Organization. 

This document provides essential details about your LLC and serves as the official registration.

To prepare the certificate, gather the following information: your LLC name, the name and address of the registered agent, specify the type of your LLC business, and provide the effective date if different from the filing date. 

The form is a straightforward online submission or can be sent by mail.

The Arizona LLC Articles of Organization filing fee is $50 ($85 if you want it faster). 

Once filed, the Arizona Corporation Commission will review the document, and upon approval, your LLC attains legal business entity status. 

You can undertake this process independently using our step-by-step guide or opt for the convenience of hiring a company for assistance.

4. Announce Your LLC

In Arizona, there’s a unique requirement for LLCs – they need to announce their formation publicly. According to AZ Revised Statute § 29-3201(G), most Arizona LLCs must make this announcement within 60 days of being formed.

However, there’s a special case: If your agent is in Maricopa or Pima County, the Arizona Corporations Commission will handle the announcement for you.

If your agent is elsewhere, you have to fulfill the Arizona LLC publication rule. This means placing a legal notice:

• in one newspaper
• for three consecutive issues
• in the county where your agent is located.

Publication Requirement for LLC:

Arizona is one of only three states that ask Limited Liability Companies to put an ad in the newspaper after forming. 

Originally, it was to “notify the public” about your new business. Even though newspapers are less impactful today, Arizona’s LLC law still insists on running an ad in one newspaper three times (usually taking about 1 to 2 weeks).

How much do these ads cost?

You can expect to pay around $50 to $150 for the newspaper ads. It’s a good idea to check rates by calling a couple of newspapers.

Where should I run the ads?

Your chosen newspaper must be in the same county as your LLC’s Statutory Agent address. 

5. Create An Operating Agreement 

An operating agreement is a document that shows how your LLC will do business. 

While Arizona doesn’t make it a must, having one is crucial. It helps in different ways, like resolving money disputes or potential legal issues. Without it, the courts decide based on state laws, not necessarily what’s best for the LLC.

The agreement can include things like the LLC’s name, address, how long it will last, the statutory agent’s details, info from the articles of organization, the business’s purpose, member contributions, how profits and losses are shared, rules for new and leaving members, how the LLC is managed, and clauses about protection and responsibility.

6. Obtain Employer Identification Number (EIN)

The Internal Revenue Service (IRS) gives your LLC a nine-digit number called an Employer Identification Number (EIN) to identify it for taxes. You can get your EIN by mail or online through the IRS.

This number helps you:

• File and handle taxes at both the state and federal levels.
• Open a bank account for your business.
• Apply for permits and licenses.
• Hire employees.

Obtaining an EIN is FREE.

7. File The Beneficial Ownership Information Report

Starting in 2024, many Arizona LLCs must submit a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN). 

This is a new rule, and the deadlines can be a bit confusing. For LLCs created in 2024, the report is due within 90 days of registering with the Arizona Corporations Commission. 

If your LLC was registered before 2024, you have until January 1, 2025. LLCs established in 2025 or later must file within 30 days of formation. 

The BOI Report requires details about the person who filed your Articles of Organization (your LLC organizer) and all individuals with at least 25% ownership or substantial control over your LLC’s operations and finances.

Read BOI FAQs here.

Review: What Is Needed To Form An LLC In Arizona?

To form an LLC in Arizona, you need:

• A unique LLC name.
• Articles of Organization
• Registered Agent information.
• Operating Agreement (recommended).
• Employer Identification Number (EIN).

What Forms Do You Need To Get An LLC In Arizona?

• Articles of Organization (online)
• Articles of Organization (PDF)
• Application to Reserve LLC Name
• EIN Application Form
• BOI Form

How Much Does It Cost To Start An LLC In Arizona?

The cost to start an LLC in Arizona involves several steps, each with its own associated fees:

• Articles of Organization Filing Fee: $50
• File Articles of Organization Filing Fee (Expedited): $85
• Name Reservation Fee (if needed): $10 by mail, or $45 online

How Long Does It Take For An LLC To Get Approved In Arizona?

If you send your LLC application by mail, it will be approved in 15-20 business days, plus the time it takes for the mail (4-5 weeks in total).

However, your LLC can be approved in 15-20 business days if you file online.

What Are The Benefits Of Getting An LLC In Arizona?

• Limited liability protection for members
• Pass-through taxation
• Flexible management structure
• Credibility for business transactions

Is Arizona A Good State To Get An LLC?

Whether Arizona is the right state for your LLC depends on where you live and do business. If you live or operate in Arizona, it makes sense to start your LLC there. 

Getting An LLC In Arizona: Next Steps

Once your LLC is registered, you can:

• Get the permits and licenses you need for your business, like health or zoning permits.
• Register your business with the state’s tax agency.
• Open a business bank account.
• Apply for a business credit card.
• Buy insurance for your business.
• Safeguard your name and logo with a trademark.

To maintain your LLC in Arizona, you must:

• Update any changes to the registered agent or business address promptly.
• Pay Taxes (owners file their individual tax returns)

Conclusion

Forming an LLC in Arizona involves a few key steps, from name reservation to obtaining an EIN. 

Carefully following the process ensures a smooth establishment of your LLC. 

For more detailed information and to access the necessary forms, visit the Arizona Corporation Commission website.