How to Start an LLC in Arizona

Step 1: Name Your Arizona LLC

Naming your business is the first step when starting an LLC in Arizona. You won’t be able to file your Articles of Organization until you’ve settled on a name. But before you get too committed, make sure the name follows Arizona’s LLC naming requirements.

What are the requirements for an LLC name in Arizona?

Complete rules for choosing a name for your Arizona LLC can be found in A.R.S. §§ 29-3112. In short, your Arizona LLC’s name must:

• Include “Limited Liability Company,” “Limited Company,” “LLC,” or another approved abbreviation.
• Not include words such as: association, corporation, incorporated, bank, or deposit, or other words that mislead consumers about the company’s function.
• Be unique in the state. You can check its availability to make sure.

If you want to secure your business name but are not yet ready to file LLC formation paperwork, you can reserve the name for 120 days. It costs $45 to reserve the name online. You’ll need to create an account with the Arizona Corporation Commission in order to file a name reservation.

Register domain name and social media handles

Once you’ve selected a name for your business, confirm the name is available as a domain and on social media. By using your business name (or a recognizable variation) across platforms, you’ll establish brand consistency. This means your customers will have an easier time finding you the first time and returning in the future.

When you hire Registered Agents Inc to form your LLC in Arizona, we include a year of free domain name registration.

Step 2: Choose a Statutory Agent

Designating a statutory agent for your Arizona LLC is required before you can submit your formation documents. The role of a statutory agent is identical to the role of a registered agent: to accept legal mail and service of process on behalf of your business. Failing to maintain a statutory agent in Arizona can lead to your company’s administrative dissolution.

Your agent can be either an individual or a business. If an individual, they must be at least 18 years old and live in AZ. If a business, it must have a physical Arizona location and be authorized to conduct business in the state.

Your statutory agent will need to accept their appointment through their eCorp account if you file formation documents online. If you file by mail, they’ll need to submit a paper acceptance.

Can I be my own registered agent for my LLC in Arizona?

Yes. As long as you live in Arizona, you can be your LLC’s registered agent. You’ll need to be consistently available during business hours to receive legal documents. When Registered Agents Inc forms your LLC, we’ll also act as your statutory agent so that you have one less thing to worry about.

Step 3: File Arizona Articles of Organization

Filing your Articles of Organization is what officially forms your Arizona LLC. The document can be filed by mail or online. You’ll encounter some formatting variations between online and paper filings, but the basic information they ask for is the same.

Here’s what you’ll need to include in your Arizona LLC Articles of Organization:

1. Entity type
   Choose between a standard LLC and a professional LLC. The agency that regulates your business’s industry will have information on whether or not you can form a PLLC. (Most businesses will form a standard LLC.)
2. Entity name
   Provide your business’s exact name. Make sure it follows the requirements we outlined in Step 1.
3. PLLC services
   If you’re forming a professional LLC, describe the services it provides, such as legal or accounting.
4. Statutory agent
   Include your agent’s name, physical address, and mailing address if different. Don’t forget to submit the Statutory Agent Acceptance form if you’re filing by mail. If you’re filing online, make sure to include the agent’s up-to-date email address so they can accept the appointment.
5. Principal address
   Is your business’s address the same as your statutory agent’s address? If so, select “Yes.” If not, select “No” and enter the principal address.
6. Management structure
   Select whether your LLC is member-managed or manager-managed. If member-managed, it means the business’s owners are also handling daily operations. If manager-managed, it means you’ve hired outside parties to run the business day-to-day. You’ll need to include names and addresses of members/managers. If you’re filing by paper, this means submitting additional manager structure attachments.
7. Signature
   The person filing the document will need to provide their name and signature.

How much does it cost to get an LLC in Arizona?

The cost to file your Arizona Articles of Organization is different for paper and online filing. Paper submissions cost $50. Online filing is automatically expedited and costs $85.

How long does LLC filing take in AZ?

If you file your Arizona Articles of Organization online, it’s processed n 4-6 business days. Paper filings take much longer at 15-17 business days.

Step 4: Publish Formation Notice

Arizona requires you to publish an ad notifying the public of your LLC’s formation in a local newspaper. Failing to do so can result in the dissolution of your LLC by the state. Publication requirements state that:

• You need to publish in a newspaper that serves the county where you statutory agent is located.
• The ad must appear in 3 consecutive issues of the paper.

Publication costs vary by paper. The state maintains a list of newspapers that you can reference when researching cost and deciding where to publish.

There is one important exception to the publication rule: If your statutory agent is located in Maricopa or Pima counties, you do not have to run these ads. Instead, the Arizona Corporation Commission publishes notices for these LLCs themselves in its Public Notice database, free of charge. Our Arizona office is located in Pima county, so when you hire us to form your LLC and serve as your statutory agent, you have one less thing to worry about.

Step 5: Set Up Business Operations

Submitting Articles of Organization might be what forms your Arizona LLC, but it’s not where your journey ends. To help your company run smoothly and maintain its limited liability, you’ll likely need to do the following:

• Create an operating agreement.
  Arizona does not require LLCs to adopt operating agreements, but that doesn’t mean you should neglect establishing one. Your operating agreement is like the blueprint for your business. It lays out all the rules and standards so that when a member leaves or joins, property is purchased, or meetings are held, all the players understand how to go through the motions.
• Get an EIN.
  You most likely need to get an EIN for your LLC in Arizona. Having one will prove important when you do things like hire employees, set up a business bank account, and pay any business-related taxes.
• Manage your company’s money.
  One of the most important pieces of maintaining your limited liability is separating your personal and business money. To do so, it’s important that you open a business bank account early on.
• Acquire necessary licenses.
  Most Arizona LLCs are subject to the state’s Transaction Privilege Tax (TPT). If subjected to the tax, you’ll need to apply for a $12 license and renew it annually. For example, if your business engages in retail sales, is a restaurant or bar, or offers personal property rentals, you’re subject to TPT. Often conflated with sales tax, TPT is actually a tax on sellers, not purchasers.

Step 6: File BOI Report

The Beneficial Ownership Information (BOI) Report is a federal filing that most businesses must complete. Submitted to FinCen, the BOI Report aims to lessen secrecy around who is running America’s businesses. The report is free to file and due within 90 days of your LLC’s registration, if you form in 2024. If you form in 2025, you’ll have just 30 days post-registration to file.

When you hire us to create your LLC in Arizona, add BOI Filing and we’ll submit this report for you.