Table Of Contents
- How to set up an LLC in AZ
- How long does it take to form an LLC in Arizona?
- The Benefits Of Starting An LLC In Arizona:
- How much does it cost to set up an LLC in Arizona?
- We Can Help You with Arizona LLC Formation!
Setting up your business with the correct structure is very important to avoid problems later on. Arizona has many options for businesses, and the most popular one is the Arizona Limited Liability Company (LLC). It's important to know that an LLC is not the same as Limited Liability Corporation in other states. In Arizona, LLCs and Corporations are two different types of business structures. Also, Arizona LLCs can be taxed either as a partnership or an S Corp, which means you have choices in how your business is taxed.
Starting an LLC or corporation might seem hard and confusing, but William is here to help you figure out which one is the best for you!
In order to form an LLC in Arizona, there are several critical steps that must be scrupulously followed to ensure that the LLC is properly and legally formed pursuant to Arizona law. Below are the Arizona LLC filing requirements:
- Choose a unique name: Select a name for your LLC that complies with Arizona's naming requirements (for additional information regarding name choices click here: LLC Naming Policy and is not already in use by another entity nor will the use of such a name infringe upon any trade name(s), copyright(s), and/or trademark(s) additional information regarding “trade names” can be found at: Trade Names Resources. The name must include "Limited Liability Company," "LLC," or "L.L.C." You can check the availability of your desired name through the Arizona Corporation Commission's (ACC) online database. Click here: LLC Entity Search
- Appoint a Statutory Agent and get the Statutory Agent’s Acceptance of the proposed appointment as Statutory Agent for the LLC: Designate an individual or a company and of which must be physically located in Arizona to be the Statutory Agent for the LLC. The Statutory Agent will be responsible for receiving formal notices and legal documents on behalf of your LLC, among other things.
- File Articles of Organization: Prepare and submit the Articles of Organization with the ACC, either online or by mail. This document outlines the formation information about your LLC, such as its name, address, purpose, management structure, membership information and Statutory Agent physical and mailing address(es). Pay the $85.00 filing fee to the Arizona Corporation Commission.
- Create an Operating Agreement: Although an operating agreement is not legally required in Arizona to form an LLC, it is highly recommended in certain instances to draft an Operating Agreement to set forth the relationship, responsibilities, duties, of and between the LLC’s members. This document outlines the ownership structure, management policies, and operating procedures of your LLC, ensuring a clear understanding among members and helping to prevent potential disputes and expensive litigation.
- Publication: If your LLC’s Statutory Agent is located in Maricopa County, AZ, the Arizona Corporation Commission will publish your LLC’s Articles of Organization as required by Arizona law. see A.R.S. 29-3201 However, if your LLC is not in Maricopa County, AZ, Arizona law requires that you publish at your expense the LLC’s Articles of Organization, see again A.R.S. 29-3201.
- Obtain an EIN: Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This unique identifier is necessary for tax reporting, opening bank account(s), and hiring employees. See the IRS’s website: EIN Number Application
- Comply with state and local regulations: Depending on your industry and location, you may need to acquire additional licenses, permits, or zoning approvals. Ensure that you adhere to all state and local requirements to maintain your LLC's good standing in Arizona.
By diligently following these steps, you can successfully establish an LLC in Arizona and lay a solid foundation for your business endeavors.
How long it takes to create an LLC in Arizona can change based on different things, like how long it takes to process and how you send in your paperwork. Usually, when you fill out your Articles of Organization on the Arizona Corporation Commission (ACC) website, it can take from a few hours to a few days to be processed.
Starting an LLC (Limited Liability Company) in Arizona comes with several benefits for business owners. Some of the key advantages include:
An Arizona LLC has flexibility in how you/your LLC is taxed. Making the right choice will affect how you pay taxes – and how much you have to pay.
For many business owners, the key decision to form an Arizona LLC is to protect their personal assets in case of a lawsuit. The reasoning is right, however, there are some details that could affect that protection, legal protection is not guaranteed however. If you don’t perform certain things correctly, you could lose that protection which opens up your personal assets for recovery to a judgment creditor of the LLC. However, when an LLC is formed correctly and adequately funded and/or insured, in most cases the members (owners) of an LLC are not personally liable for the debts and liabilities of the LLC.
Corporations have substantially more legal requirements than an Arizona LLC, a few examples include but are not limited to the requirement(s) of: shareholder meetings, board meetings and minutes, annual report filings, and filing fees. If you miss any of those requirements you could lose your legal protection as a C-corporation. Arizona LLC requirements are much simpler, offer more flexibility, and are less costly to maintain than C-corporations, that’s why so many business owners use them for their legal structure.
The primary benefit of an Arizona LLC is to limit (or preclude entirely in many cases) one’s personal assets from liability that results to the LLC. An Arizona LLC can also make your company a more attractive option for potential investors, helping to secure funding for your business, than would/does a traditional partnership.
Arizona law only requires owners (I.e., members of the LLC) that possess 20% or more of the LLC’s ownership to disclose such members names and addresses. This can provide an added level of privacy for the LLC owners/members who own less than 20% as such members may keep their ownership interest in the Arizona LLC off the public record(s).
The cost of setting up an Arizona LLC can vary drastically depending on how it is set up and who sets it up for you. First, to save some money you can set it up yourself but this could cause many problems down the line if not done correctly. Secondly, there are third-party services that charge a fee to form your Arizona LLC but such services may not be narrowly tailored to comply with Arizona LLC formation laws, plus some may have very poor customer service and provide no protection in the future should something arise regarding a defect in the Arizona LLC’s formation. The best and cheapest way to create an LLC way for long-term security and affordability is to consult a local business and Arizona LLC attorney. A local attorney like William Morris will likely save you money in the short and long term by making sure everything is set up properly.
Currently, the Arizona Corporation Commission charges a filing fee of $85.00 to create and file Articles of Organization of an Arizona LLC, this does not include any legal services, legal advice, customer service, guidance, or best practice recommendations.
Embarking on the journey of establishing and forming an Arizona LLC calls for expert guidance to guarantee adherence to all vital steps. Our Arizona LLC services are available at an affordable flat rate in most instances, and provide you with the confidence to seek advice whenever you need it, without the fear of accumulating outrageous legal expenses. Consult with an experienced attorney, William Morris, today, and let us illuminate the path to your successful LLC formation!
LLC FORMATION ATTORNEY IN SCOTTSDALE, ARIZONA
We know finding a business attorney you can trust to help you with your business isn’t easy. It’s important to learn about your attorney’s abilities to see how you fit together. That’s why I offer a free initial telephone consultation. You can use it to learn more about me and my firm, and how we can work together. I’m confident I can help you — whether you’re just getting started, selling your business, or something in between. Reach out today!
WE’RE READY TO START DEFENDING YOU.
Schedule Your Free Consultation Today.