As one of the nation’s fastest-growing states, Arizona is an attractive location to start a new LLC. Find out how to launch your LLC in 8 steps.
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by Miles Almadrones
Miles is a legal writer and content marketing specialist with a background in operations management and logistics. He...
Legally reviewed by Allison DeSantis, J.D.
Allison is the Director of Product Counsel at LegalZoom, advising and providing leadership to internal teams on the d...
Updated on: October 27, 2024 · 12 min read
Arizona offers several advantages for any new limited liability company (LLC), including a low $50 filing fee, no annual reporting requirements, and no franchise tax. However, entrepreneurs still need to follow specific steps to ensure proper formation, from naming the LLC to securing an Arizona business license and local permits.
Before jumping into each step, here’s an overview of everything you’ll do in order to start your LLC:
You'll need to choose a name to include in your articles before you can register your limited liability company with the ACC. Names must comply with Arizona's naming requirements and be distinguishable from other entities filed with the ACC and Arizona Secretary of State (SOS). The following are the most important requirements to keep in mind:
For more information, check out the complete listing of Arizona LLC naming requirements. In addition, you might consider reserving your business name through the ACC to hold it for up to 120 days. This might be a good idea if you’re not quite ready to establish your LLC but want to prevent others from taking it, though you’ll need to pay a $45 fee.
Arizona requires you to appoint an in-state statutory agent (also called a registered agent in other states) for your LLC. A statutory agent can be a person (including yourself or an employee of your LLC) or an entity that offers a registered agent service, provided they meet the following criteria outlined by the ACC:
A statutory agent receives service of process and other official legal documents and notices on behalf of your Arizona LLC. While there’s no fee to appoint a statutory agent, you’ll still need to pay for their services (if you work with a third party), which may cost between $50 and $300 annually in Arizona.
The articles of organization is a document that officially establishes your LLC in Arizona, and you’ll file it with the ACC. This process is relatively straightforward and can be completed online through the ACC’s eCorp website or by mail. You'll need the following information with either method:
Once you file your articles, the ACC will review the filing and issue a decision. If the articles are approved, the LLC becomes a legal business entity, and the state will issue a certificate. Eventually, you’ll use this to apply for and obtain an employer identification number (EIN), business licenses, and business bank account.
Arizona LLCs are not required to file an operating agreement, which outlines the way your LLC will conduct business. Still, it’s an essential component of any successful business, so you should strongly consider creating one.
The operating agreement can include, but is not limited to, the following:
Having a readily accessible, written operating agreement is helpful for various reasons, especially to resolve disputes that may arise over financial agreements and other potential litigation. Without an agreement in place, Arizona courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members.
Arizona requires most LLCs to publish a Notice of Formation for three consecutive weeks in an approved newspaper in the county of your LLC's statutory agent. A notice of formation will list the following:
Afterward, it’s advisable to file an affidavit of publication with the ACC to confirm you completed the Arizona LLC publication requirement. However, LLCs formed in Maricopa or Pima counties are not required to meet publication requirements.
An Employer Identification Number (EIN) is a unique nine-digit code assigned by the Internal Revenue Service to identify your LLC for tax purposes. While not always required for Arizona single-member LLCs with no employees, obtaining an EIN is generally recommended to keep your personal and business finances separate.
The purpose of an EIN is to assist with the following:
You can obtain your EIN by mail or online through the IRS for free. Once you’ve secured a federal tax identification number, you can start to look into business bank accounts for your LLC. You can typically find options through the big banks (i.e., Wells Fargo, Chase, or Bank of America), as well as regional or local banks near you in Arizona.
As pass-through entities, LLC members typically report income taxes on their personal returns—unless they elect to be taxed as a corporation. However, there are several other tax and licensing considerations for Arizona LLCs.
If you’d like assistance, LegalZoom can look into all these licenses and permits for you and identify which ones your business needs to operate.
Most Arizona LLCs are required to file a BOIR with the Financial Crimes Enforcement Network (FinCEN). The BOIR requires LLCs to disclose information about their “beneficial owners”—or individuals who directly or indirectly own 25% or more of the company or who have considerable control over it.
If you start your LLC in 2024, you must file this report within 90 days of registration. If you start your LLC in 2025 or later, you must file the BOIR within 30 days. Keep in mind that failure to comply can result in significant penalties, including fines and jail time, so it’s recommended to consult an attorney if you have any questions.
Registering your LLC gives you a legal foundation to conduct business in Arizona. Still, you’ll typically need to complete a few additional steps to get up and running, including the following:
In today’s digital age, having an online presence is crucial for most businesses. Even if you don't think you'll need a webpage, there’s a chance you will in the future. At the very least, you should reserve the option of having one in the future by buying your domain name now. Before finalizing your LLC name, it's a good idea to check if the URL is available.
To do this, visit a domain registrar like GoDaddy or Google Domains. Search for your desired domain name (or an abbreviated version if a long name) followed by the appropriate extension (e.g., .com or .org). If you skip this step, however, you risk losing your domain name to another business with a similar name.
While specific needs vary by industry and business size, you’ll likely need to acquire some form of business insurance, such as:
You can research quotes yourself or consult a licensed insurance agent in Arizona to identify which insurance plans you’ll need to protect your LLC.
Unlike many states, Arizona doesn’t have annual LLC filing fees or reporting requirements. However, you must still comply with tax obligations, including filing and paying any applicable state and local taxes (not to mention federal income tax).
In addition, your LLC must maintain a statutory agent in Arizona at all times. In the event you need to change agents, you’ll need to submit a statement of change for $5 (or $40 for expedited processing). It’s also a good practice to review and update your LLC’s information with the ACC as needed.
While not mandatory, obtaining a certificate of good standing (also called a certificate of existence) might be beneficial for your Arizona LLC. This document confirms your LLC’s legal standing and active registration with the ACC. It may be required when seeking loans, opening bank accounts, or moving to other states.
To obtain one, visit the ACC’s website and request the certificate online. The fee is currently $10 (or $45 for expedited processing).
If you ever plan on conducting business in other states, you may need to register as a foreign LLC in those jurisdictions. This typically involves filing the necessary paperwork and paying the required fees in each state where you wish to operate. You might also need to provide a certificate of good standing from the ACC and appoint a registered agent in the new state(s).
Still, foreign LLC requirements and costs depend on the state, so research each jurisdiction’s specific rules or consult a business attorney for advice.
All things considered, you’ll pay at least $50 to start your LLC. However, the total costs can increase to $1,000 or more, especially if you need specialized permits for your Arizona LLC.
You might also pay fees for any corrections or revisions you submit to the ACC, so be sure to check the schedule of fees for an accurate estimate.
We’ve shown you the complete process to start an LLC in Arizona, but why not save time and launch your LLC in only three steps with LegalZoom? Here’s how it works:
The best part is you can start your LLC with us for as low as $0 + the Arizona filing fee of $50. That way, you can focus less on the paperwork and more on setting up your venture to succeed in the Grand Canyon State.
LLCs offer personal asset protection (unlike sole proprietorships), flexible management structures, and pass-through taxation. LLCs also have fewer formal requirements than corporations, which makes them ideal for small businesses that want to protect their assets with less administrative work.
New Arizona LLC applications may take between 13 and 15 business days to process, whether you file online or by mail. Those who pay for expedited processing can generally expect a response within four to six business days.
Arizona doesn’t require a general state business license, but many cities and counties require local licenses. Check with your local government authorities or the Arizona Commerce Authority to clarify which ones you’ll need.
In Arizona, LLC members report their share of profits on personal tax returns unless they opt to be taxed as a corporation. In addition, LLCs may need to pay Arizona transaction privilege tax (similar to sales tax), unemployment insurance tax if they have employees, and any applicable local taxes.
Rudri Bhatt Patel contributed to this article.
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