Last Updated on 2 weeks by Komolafe Bamidele
Arizona is currently experiencing a significant economic upswing.
Because of this, many more jobs are opening up, and new businesses are opening all over the state.
Now is an ideal time to begin starting an LLC in Arizona. This article provides a comprehensive guide on how to set up an LLC in Arizona.
It covers important aspects like choosing a name, selecting a registered agent, completing the necessary paperwork, and obtaining any required permits and licenses.
With this knowledge, you can confidently start your LLC and expand your business in Arizona.
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6 Start To Start an LLC in Arizona.
Step 1: Reserve an LLC Business Name.
If you’re considering reserving a business name in Arizona, it’s important to note that it’s not a requirement for LLCs.
However, if you decide to reserve a name, file your Articles of Organization after the reservation is complete.
Ensuring that your documents are submitted in the correct order, is crucial to avoid any potential rejection of your name reservation request.
After you’ve chosen the ideal name, you have the option to secure your business name online and make a payment of $45 using a credit card.
Remember that this method has a $35 expedition fee so it may be your fastest option.
You can complete the name reservation process offline and pay only $10.
Please ensure that checks or money orders are payable to the Arizona Corporation Commission. All fees are non-refundable.
Use internet resources such as Zenbusiness to streamline this procedure.
Step 2: Choose an Arizona Registered Agent
Now, it’s time to select a Registered Agent for your LLC in Arizona.
A person or business that takes state notices and legal mail on behalf of your Arizona Limited Liability Company is known as an Arizona Registered Agent.
Who is eligible to be an LLC Statutory Agent?
There are three options available for selecting the Statutory Agent:
- You
- family member or friend
- The Services of a Registered Agent
The Statutory Agent must have a physical street address within Arizona for your Arizona LLC. No PO Boxes are permitted.
The name and address of the Statutory Agent will be publicly available.
If you don’t have a physical location in Arizona or value your privacy, you can enlist the services of a Registered Agent for your LLC.
Step 3: Register with the state of Arizona
To register with Arizona State, you’ll need to create and file articles about the organization of your LLC.
LLCs must register with each state where they operate their business.
Arizona offers multiple options for registering a domestic LLC online, by mail, or by fax through the Arizona Corporation Commission.
According to the state, the ACC’s online services are the most efficient documentation submission method.
You will need to fill out and submit Form L010i, which is the Articles of Organization form.
Use the eCorp filing system to complete your form.
This system helps you complete your articles of organization in a manner that meets the state of Arizona’s requirements.
Step 4: Form an Operating Agreement for Your LLC.
It is suggested that you make an LLC Operating Agreement because it spells out the financial and operational choices that apply to your LLC.
A working agreement isn’t required, but it can help prove essential things like which members have the most say in the company’s choices and who is responsible for day-to-day business tasks.
An excellent-written operating agreement can boost your LLC’s reputation and ensure it stays in good standing.
Step 5: Publish your LLC.
In contrast to other states, Arizona mandates that you publish a notice of your LLC’s creation within the first 60 days of its formation in a publication approved by the county where the firm was created.
It must appear in the newspaper for at least three consecutive runs or publications.
Show your company has been established in Pima or Maricopa County, the county will take care of this prerequisite for you.
If this condition is not met, your LLC will be dissolved.
Step 6: Get an Employer Identification Number (EIN).
Most companies need an EIN, Federal Tax Identification Number (FTIN), or Federal Employer Identification Number (FEIN).
It is an excellent substitute for utilizing one’s Social Security number in the event of single-member LLCs, protecting it from exposure or possible fraud.
You may receive them for free by visiting the IRS website.
Step 7: Open a business bank account.
You need to open a business bank account to separate your LLC’s earnings from your personal ones.
It also lets you keep track of your business activities for easier tax time. This can help you determine your deducted business costs and profit and loss.
To open an LLC bank account, you must have your EIN and Certificate of Business Formation.
Arizona LLC FAQs
How much does an LLC cost in Arizona?
The fee to file is between $40 and $500, depending on the type of LLC you are making and how many people you have.
The average cost to form an LLC in the US is $132 as of 2020. In Arizona, however, the price is only $50 for an essential LLC.
How do I start an LLC in Arizona?
To start creating an LLC in Arizona, follow the steps in this article.
For example, choose a name, select a registered agent, send in the required paperwork, and get the necessary permits and licenses.
What are the benefits of opening an LLC in Arizona?
LLCs are a common choice for many entrepreneurs due to their cost-effectiveness compared to corporations.
In certain situations, an LLC may not necessitate any extra tax filings.
You can protect your assets by keeping them separate from your LLC’s assets.
How are LLCs taxed in Arizona?
Arizona LLCs are pass-through businesses by default, meaning that each member’s tax return is where the LLC’s revenue is disclosed.
Members of LLCs pay 15.3% in taxes, but LLCs that elect to become C-corps pay 4.9% in taxes.
To Wrap Up
Setting up an LLC in Arizona can be easy and only take a few steps.
The state gives you many tools to help you along the way, such as step-by-step instructions and sample forms.
You’ll be off to a great start using the state’s helpful tools. Looking into the best LLC creation services can make the process faster.