Forming an LLC helps entrepreneurs weather the sometimes shifting sands of the Arizona business landscape. The advantages of having an LLC in Arizona include a corporate structure that affords maximum flexibility, limited liability protection and flow-through taxation. You can trust Rocket Lawyer to explain what it takes to launch your LLC.
What It Costs to Form an Arizona LLC
Other than the required state filing fees, how quickly you need to move ahead is an important consideration. If you want to speed up your filing, expedited processing may affect the cost. Click here to see the average turnaround times for standard and expedited filing options.
Requirements for your Arizona LLC
Each state has its own requirements regarding the parties you list in your Articles of Organization and other details that document must cover. Arizona’s requirements are as follows:
Personnel Requirements: Your LLC must have one or more members and/or managers. Arizona has no age requirements for personnel and does not specify where they must reside.
Articles of Organization: While personnel names and addresses do not have to be listed in this document, your Articles of Organization must identify a statutory or registered agent for your business. Your registered agent must be available during normal business hours to receive tax, legal, and government documents. The agent must have a physical address in the state, not a P.O. Box. You can serve as your LLC’s own registered agent. If you designate a third party to be responsible for these duties, you can choose an individual, domestic corporation, limited liability company, foreign corporation or foreign limited liability company authorized to conduct business within the state.
Other Paperwork for Your Arizona LLC
Arizona has a publication requirement that LLCs within the state must meet, which includes:
- You have to publish notice of LLC incorporation within 60 days of incorporation in a newspaper or other publication in the known place of business (usually, the local county) for three consecutive occurrences. For example, you could take care of this by publishing notice of your LLC’s incorporation for three consecutive days in the local daily newspaper.
- You must submit an affidavit of publication to the Arizona Corporation Commission to provide proof that you have met this requirement.
Choosing a Name for Your Arizona LLC
Your business needs an original name that differs enough from existing LLCs within the state to avoid confusing the public. For example, if Martha’s Deli already exists, Martha’s Delly is not acceptable because it may cause confusion.
We take care of checking the availability of your desired name as part of our free incorporation service. You can contact the contact the Arizona Secretary of State if you’d rather handle this task on your own.
Remember these additional pointers as you consider names:
- Do not use “incorporated” or “corporation” or anything akin to them in your desired name. Again, you need to avoid confusion; these terms make it sound like the business has incorporated as an S-Corporation or C-Corporation.
- Include your LLC designation at the end of your business name. “LLC”, “Limited Liability Company”, “L.L.C.”, and “Ltd. Liability Co.” are popular options. Rocket Lawyer checks that your name meets this mandatory requirement.
- Avoid any words that could suggest your business is an insurer, a bank or a trust.
Keeping your Arizona LLC Compliant
While Arizona corporations need to file intial and annual reports, Arizona LLCs do not. You won't have to worry about franchise taxes either. You will, however, need to publish notice that your business is starting in a local newspaper.
Many states require this step. Within sixty (60) days of filing, you'll need to file what's known as a "notice of publication." The state provides this list of newspapers you can file your notice in and any of those papers can share a sample notice for you to follow along to. Note that different papers charge different amounts to file this notice, though none of those costs are unwieldy. Some newspapers will send an affidavit to the government noting that you've filed, while others will provide you with an affidavit to send to the government. Make sure you ask before publishing. It seems like a simply step—and it is—but if you miss this requirement, your LLC can actually be dissolved.
You'll of course have to pay taxes and, if you'd like to learn more, you can click here to read more about LLC tax structure. State tax requirements are available from the Arizona Department of Revenue.
Get an LLC Operating Agreement for Arizona
While an Operating Agreement is not a formal legal requirement in Arizona, it’s a good idea to write one for your LLC.
Most entrepreneurs prefer having an Operating Agreement that governs their conduct, rather than being governed by default state rules. We can help you create an Operating Agreement online to customize your business structure, protect yourself and regulate management affairs.
Now that you know what’s involved, are you ready to launch your LLC in Arizona? Rocket Lawyer is ready to help you get it done right.
Form an Arizona LLC
