How To Get An Llc In Az

Starting an LLC in Arizona Is Easy

To form an LLC in Arizona you will need to file your Articles of Organization with the Arizona Corporate Commission, which costs $50 online. You can apply online, by mail, by fax, or in person. The Articles of Organization is the legal document that officially creates your Arizona limited liability company.

Follow the step-by-step guide below to form an Arizona LLC today and get your business up and running. To learn more about LLCs and their benefits, please read our What Is an LLC guide.

STEP 1: Name Your Arizona LLC

Choosing a company name is the first and most important step in opening an LLC in Arizona. Be sure to choose a name that complies with Arizona naming requirements and is easily searchable by potential clients.

1. Follow the naming guidelines:

• Your name must include the phrase "limited liability company" or one of its abbreviations (LLC or L.L.C.).
• Your name cannot include words that could confuse your Arizona LLC with a government agency (e.g., FBI, Treasury, State Department, etc.).
• Restricted words (e.g., Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your Arizona LLC.
• Your name must be distinguishable from any other Arizona limited liability company, corporation, limited liability partnership, limited partnership, or trade name.

For more information, check out the Arizona Corporation Commission.

2. Is the name available in Arizona? Make sure the name you want isn't already taken by doing a name search on the Arizona eCorp website.

To learn more about searching for an Arizona LLC name, read our full guide.

3. Is the URL available? We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.

After securing a domain name for your LLC, consider setting up a business phone service to establish further credibility and improve customer satisfaction. Nextiva offers a variety of helpful features such as unlimited voice and video callings, a convenient mobile app, and more. Try Nextiva today.

Not sure what to name your business? Check out our LLC Name Generator. Then, create a logo with our Free Logo Generator.

FAQ: Naming an Arizona LLC

What is an LLC?

LLC is short for limited liability company. It is a simple business structure that offers more flexibility than a traditional corporation while providing many of the same benefits.

An LLC is one of several business structures, such as a sole proprietorship, partnership, and corporation (which includes C corp and S corp). For more information, read our What is an LLC guide.

Watch our video: What is an LLC?

Do I need to get a DBA or trade name for my business?

Most LLCs do not need a doing business as (DBA) name. The name of the LLC can serve as your company's brand name and you can accept checks and other payments under that name as well. However, you may wish to register a DBA if you would like to conduct business under another name.

To learn more about DBAs in your state, read our How to File a DBA guide.

STEP 2: Choose a Statutory Agent in Arizona

You arerequired to nominate an Arizona statutory agent for your LLC. A statutory agent is more commonly known as a registered agent in other states.

What is a statutory agent? A statutory agent is an individual or business entity responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your statutory agent as your business's point of contact with the state.

Who can be a statutory agent? A statutory agent must be a resident of Arizona or a corporation, such as a registered agent service, authorized to transact business in Arizona. You may elect an individual within the company including yourself.

To learn more about Arizona Registered Agents, read our full guide.

Recommended: ZenBusiness includes registered agent service with their LLC formation package ($39 for the 1st year + State Fees).

FAQ: Nominating an Arizona Statutory Agent

Can I be my own statutory agent in Arizona?

Is a registered agent service worth it?

Using a professional registered agent service is an affordable way to manage government filings for your Arizona LLC. For most businesses, the advantages of using a professional service significantly outweigh the annual costs.

For more information, read our article on Arizona statutory agents.

STEP 3: File the Arizona LLC Articles of Organization

To register your Arizona LLC, you'll need to file the following forms with the Arizona Corporation Commission:

• Form L010 - Articles of Organization
• Statutory Agent Acceptance
• Member or Manager Structure Attachment
• Cover Sheet

You can apply online, by mail, or in person.

Now is a good time to determine whether your LLC will be member-managed vs. manager-managed.

For help with completing the form, visit our Arizona Articles of Organization guide.

If you're expanding your existing LLC to the state of Arizona, you will need to form a Foreign LLC.

FAQ: Filing Arizona LLC Documents

How long does it take to form an LLC in Arizona?

Regular Articles of Organization processing can take up to 30 business days, but documents can be expedited for an additional fee.

What is the difference between a domestic LLC and a foreign LLC?

An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. Normally when we refer to an LLC we are actually referring to a domestic LLC. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.

Read our What Is a Foreign LLC article to learn more.

How much does it cost to start an Arizona LLC?

STEP 4: Complete Arizona LLC Publication Requirement

What is Arizona's LLC publication requirement? Arizona requires newly formed LLCs to publish a Notice of LLC Formation for three consecutive weeks in an approved newspaper in the county of the LLC's principal office. This must be done within 60 days of formation.

Exceptions: Businesses whose principal address is in either Maricopa or Pima counties do not have to publish a Notice of LLC Formation.

What does my Notice of LLC Formation need to include? You will need to publish the following information:

• Your LLC's name
• The name and street address of your Statutory Agent
• The address of the LLC's principal place of business (if different from that of the Statutory Agent)
• Whether your LLC is member-managed or manager-managed
• The name(s) and address(es) of either your LLC manager or each member of your LLC

Read our full guide for Arizona LLC publication requirements to learn more.

Get the full list of newspapers organized by county, courtesy of the Arizona Corporation Commission, Corporations Division.

DOWNLOAD PDF

Fee: Fees vary by county. Costs range from $30-$300. (Nonrefundable)

STEP 5: Create an Arizona LLC Operating Agreement

An operating agreement is not required for an Arizona LLC, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Arizona LLC operating agreement guide.

FAQ: Creating an Arizona LLC Operating Agreement

Do I need to file my operating agreement with the state of Arizona?

No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.

STEP 6: Get an Arizona LLC EIN

What is an EIN? EIN stands for Employer Identification Number. EINs are a nine-digit number assigned by the Internal Revenue Service (IRS) to help identify businesses for tax purposes. It is essentially a Social Security number for a business.

An EIN is sometimes referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).

Why do I need an EIN? An EIN is required to:

• Open a business bank account
• File and manage federal and state taxes
• Hire employees

What if I already have an EIN for my sole proprietorship? The IRS requires that sole proprietorships get a new EIN when converting to an LLC.

Where do I get an EIN? You can get an EIN for free from the IRS. Getting an EIN is an easy process that can be done online or by mail.

FOR INTERNATIONAL EIN APPLICANTS: You do not need a SSN to get an EIN. For more information, read our How to Get an EIN as a Foreign Person guide.

Option 1: Request an EIN from the IRS

Apply Online

- OR -

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

FAQ: Getting an Arizona LLC EIN

How do I get an EIN if I don't have a Social Security number?

What tax structure should I choose for my Arizona LLC?

Do I need an EIN for my LLC?

All LLCs with employees, or any LLC with more than one member, must have an EIN. This is required by the IRS.

Learn why we recommend always getting an EIN and how to get one for free in our Do I Need an EIN for an LLC guide.

Have a question? Leave a Comment!

Ask us a question, tell us how we're doing, or share your experiences. Join the conversation in our Comment Section.

Have a question? Leave a Comment!

Ask us a question, tell us how we're doing, or share your experiences. Join the conversation in our Comment Section.

Considering Using an LLC Formation Service?

We reviewed and ranked the top 5 LLC formation services.
Find out which is best for you.

Best LLC Services

Important Steps After Forming an LLC

Separate Your Personal and Business Assets

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your Arizona LLC is sued. In business law, this is referred to as piercing the corporate veil.

You can start protecting your LLC in Arizona with these steps:

1. Opening a business checking account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Need help finding your EIN for your bank application? Visit our EIN Lookup guide for help.

Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

2. Getting a business credit card:

• Helps you separate personal and business expenses.
• Builds your company's credit history, which can be useful to raise capital (e.g., small business loans) later on.

For other important steps to protect your corporate veil, like properly signing legal documents and documenting company business, please read our corporate veil article.

3. Hiring a business accountant:

• Prevents your business from overpaying on taxes while helping you avoid penalties, fines, and other costly tax errors
• Makes bookkeeping and payroll easier, leaving you with more time to focus on your growing business
• Manages your business funding more effectively, discovering areas of unforeseen loss or extra profit

For more business accounting tools, read our guide to the best business accounting software.

Get Business Insurance for Your Arizona LLC

Business insurance helps you manage risks and focus on growing your business. The most common types of business insurance are:

• General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
• Professional Liability Insurance: A business insurance for professional service providers (e.g., consultants, accountants, etc.) that covers claims of malpractice and other business errors.
• Workers' Compensation Insurance: A type of insurance that provides coverage for employees' job-related illnesses, injuries, or deaths. In Arizona, businesses with one or more employees, excluding officers and LLC members, are required by law to have workers' compensation insurance.

Find out how much it will cost to keep your business protected.

Get a Free Quote

Read our review of the best small business insurance companies.

Create Your Business Website

Creating a website is a big step in legitimizing your business. Every business needs a website. Even if you think that your business is too small or in an offline industry, if you don't have a website, you are missing out on a large percentage of potential customers and revenue.

Some may fear that creating a business website is out of their reach because they don't have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn't delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own and control.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don't need to hire a web developer or designer to create a website that you can be proud of.

Using our website building guides, the process will be simple and painless and shouldn't take you any longer than 2-3 hours to complete.

Send Out a Press Release

Press releases are among the easiest and best ways to promote your business. They are also one of the most cost-effective strategies as they:

• Provides publicity
• Establish your brand presence on the web
• Improve your website's search engine optimization (SEO), driving more customers to your website
• Are a one-time cost in terms of effort and money
• Have long-lasting benefits

Join the Conversation

We are here to guide you through your entrepreneurial journey, and are always looking at your feedback. Share your experiences in our comment box, chat with other entrepreneurs, or simply let us know how we're doing.

Let's Connect

Keep Your Company Compliant

Arizona LLC Business Permits and Licenses

To operate your Arizona LLC, you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.

The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.

Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.

Find out how to obtain necessary licenses and permits for your business or have a professional service do it for you:

• Federal: Use the US Small Business Administration (SBA) guide.
• State:Visit the Arizona Department of Revenue's State Licensing website.
• Local: Contact your local county clerk and ask about local licenses and permits.

Recommended: If you are a first-time entrepreneur, consider having a professional service research your business's licensing requirements. Read our best business license services review on Startup Savant.

Arizona LLC Tax Filing Requirements

Depending on the nature of your business, you may be required to register for one or more forms of state tax.

Arizona Sales Tax

If you are selling a physical product, you'll typically need to register for an Arizona Transaction Privilege Tax (TPT) License. Referred to as a sales tax in most places, this is a tax on vendors for the privilege of doing business in Arizona.

The Arizona Department of Revenue collects the tax for the counties and cities, but rates will vary based on the business type and location.

Read our Arizona sales tax guide to find out more.

Arizona Employer Taxes

If you have employees in Arizona, you will need to register for Unemployment Tax and Employee Withholding Tax through the Department of Revenue.

Federal LLC Tax Filing Requirements

Most LLCs will need to report their income to the IRS each year using:

• Form 1065 Partnership Return (most multi-member LLCs use this form)
• Form 1040 Schedule C (most single-member LLCs use this form)

How you pay yourself as an owner will also affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.

Read our LLC Tax Guide to learn more about federal income taxes for LLCs.

Avoid Automatic Dissolution

LLCs may face fines and even automatic dissolution when they miss one or more state filings. When this happens, LLC owners risk the loss of limited liability protection. A quality registered agent service can help prevent this outcome by notifying you of upcoming filing deadlines and by submitting reports on your behalf.

Recommended: ZenBusiness offers a reliable registered agent service and excellent customer support. Learn more by reading our ZenBusiness Review.

Hiring Employees in Arizona

If you plan to hire employees for your Arizona LLC, stay compliant with the law by following these steps:

• Verify that new employees are able to work in the US
• Report employees as "new hires" to the State
• Provide workers' compensation insurance for employees
• Withhold employee taxes
• Print workplace compliance posters and place them in visible areas of your workspace

Find out more from the Industrial Commission of Arizona and the Arizona Department of Economic Security.

FAQ: Hiring Employees

What is the minimum wage in Arizona?

The minimum wage in Arizona is $12.15 per hour. The minimum wage in Flagstaff is $15.00 an hour.

How often do I need to pay employees in Arizona?

Wages must be paid two or more days in a month, these days cannot be more than 16 days apart.

Get Help Starting a Business in Arizona

We understand that creating an LLC and getting your business up and running comes with many challenges. To help you succeed, we compiled the best local resources in every major metro area in Arizona. You can get free assistance in the following areas:

Flagstaff | Phoenix | Prescott | Tucson | Yuma

Small Business Resources

Small Business Trends

Learn about the current US business trends so you can make the most informed business decisions.

Women in Business Tools and Resources

If you have a woman-owned business, many resources are available to help you concentrate on your business's growth:

• Funding - (i.e., grants, investors, loans)
• Events - (i.e., conferences, meetups)
• Guides - (i.e., business formation, personal growth)
• Support - (i.e., advice, communities, business strategies)

Our information and tools will provide educational sources, allow you to connect with other women entrepreneurs, and help you manage your business with ease.

Free LLC Legal Forms

TRUiC offers a number of free LLC legal forms to help with creating documents like:

• Operating agreements
• LLC resolutions
• Hiring documents, including:
  
  • Employment contracts
  • Independent contractor service agreements (ICSA)
  • Non-disclosure agreements (NDA)

All you'll need to do to download the forms is sign up for the TRUiC Business Center, which is also free, forever.

How to Make a Website

Check out our how to build a website guide to learn how creating a website isn't as difficult as it might seem. With the right tools, a good guide, and a bit of patience, you can learn how to make a website for your business in no time.

How to Build Business Credit

Learning how to build business credit can help you get credit cards and other business funding options in your business's name (instead of yours), with better interest rates, higher lines of credit, and more.

TRUiC's Small Business Tools

TRUiC believes business tools should be free and useful. Our tools help solve business challenges, from finding an idea for your business, to creating a business plan, writing an operating agreement for your LLC, and more.

Check out TRUiC's small business tools:

• Business Name Generator
• Business Idea Generator
• Free Logo Maker
• Operating Agreement Tool
• Business Plan Generator
• Entrepreneur Quiz

More Arizona LLC Information

Arizona Foreign LLCs

Forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Arizona, you will need to register as a foreign LLC. This can be done by mail.

File by Mail with the Arizona Corporation Commission

Download Form

Fee: $150 (Nonrefundable)

Mail to:
Arizona Corporation Commission
Corporate Filings Section
1300 W. Washington St.
Phoenix, AZ 85007

Fax: (602) 542-4100

How to Obtain a Certificate of Good Standing in Arizona

A Certificate of Good Standing verifies that your Arizona LLC was legally formed and has been properly maintained. Several instances where you might need to get one include: Seeking funding from banks or other lenders Forming your business as a foreign LLC in another state Obtaining or renewing specific business licenses or permits.

You can order an Arizona LLC Certificate of Good Standing online.

Request a Certificate from the Arizona Corporation Commission.

Request Online

Fee: $45 online (Nonrefundable)

How to Dissolve an LLC in Arizona

If at any point in the future you no longer wish to conduct business with your Arizona LLC, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble. To dissolve your Arizona LLC, there are three broad steps:

• Follow your LLC operating agreement
• Close your business tax accounts
• File the Arizona Articles of Dissolution (known in Arizona as the Articles of Termination)

When you are ready to dissolve your LLC, follow the steps in our Arizona LLC Dissolution Guide.

Guide to Starting a Business in Arizona

Top Five LLC Formation Services Compared

Cost to Form an LLC in Arizona

Key Terms for Entrepreneurs

LLC: An LLC is a US business structure that offers the personal liability protection of a corporation with the pass-through taxation of a sole proprietorship or partnership.

DBA: A DBA, or doing business as name, is any name a business operates under that isn't its legal name.

Partnership: A partnership is an informal business structure owned by more than one individual that doesn't provide personal liability protection.

How To Get An Llc In Az

Source: https://howtostartanllc.com/arizona-llc

Posted by: davisspont1970.blogspot.com

Share this post