How to Start an LLC in Arizona (2023 Guide)

How to Form an LLC in Arizona in 6 Steps

In order to form your LLC in Arizona, there are certain steps you’ll need to complete:

1. Name Your LLC
2. Choose an Arizona Statutory Agent
3. File Your Articles of Organization
4. Create an LLC Operating Agreement
5. Complete the Arizona LLC Publication Requirement
6. Obtain an EIN

Step 1: Name Your Arizona LLC

Before you get started, you will need to pick a suitable name for yourArizona LLC.

This will need to comply with all applicable naming requirements under Arizona law and be both succinct and memorable, as this will make it easily searchable by your potential clients.

1. Important Naming Guidelines for Arizona LLCs:

• Your name must include the words “limited liability company,” “limited company,” or one of the following abbreviations: “L.L.C.,” “L.C.,” “LLC,” or “LC” in either uppercase or lowercase letters.
• Your name cannot contain the words “association,” “corporation,” “incorporated,” or any abbreviations of these terms.
• If you’re going to be operating a professional LLC, you will need to include the words “professional limited liability company” or one of the following abbreviations: “P.L.L.C., P.L.C., PPLC, PLC.”
• Your name cannot include words that could confuse your Arizona LLC with a government agency (e.g., FBI, Treasury, State Department, etc.).
• 名称与“银行”、“信用合作社”,“信任”“信任company,” or “deposit” are prohibited unless the LLC is expressly engaged in banking or trust activities.
• Other restricted words (e.g., 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 (including names reserved with the ACC). Names with a difference in business identifier (e.g., Corp., LP, LCA, etc.) do not make a name distinguishable.

We recommend checking out theArizona Corporation Commissionfor a complete list of naming rules in this state.

2. Is the name available in Arizona?

To check whether your desired name has already been taken by another business entity in Arizona, you can perform anEntity Searchon the Arizona eCorp website.

If you’re not going tostart your LLCright away, it might be a good idea to consider reserving your name for up to 120 days. This includes a $10 processing fee.

For more information, you can have a look at ourArizona LLC Name Searchguide.

3. Is the URL available?

We recommend that you check online to see if your business name is available as aweb domain. Even if you don't plan to make a business website right away, this is an extremely important step as it will prevent others from acquiring it — potentially saving you both time and money in the long term.

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

We reviewed and ranked the118金宝app . Find out which is best for you.

FAQ: Naming an Arizona LLC

Step 2: Choose a Statutory Agent in Arizona

After you find the right name for your LLC, you will need to nominate anArizona statutory agent. This is known as a registered agent in most states outside of Arizona, and is a necessary step in your Articles of Organization (i.e., the document used to file and register your LLC with the Arizona Corporation Commission).

What is a statutory agent?A statutory agent is an individual or business entity responsible for receiving notice of lawsuits on behalf of your business. You can think of your statutory agent as your business's primary 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, individual (e.g., yourself, etc.), or a business attorney – authorized to transact business in Arizona.

Keep in mind that your statutory agent must be at the business address or another physical street address within Arizona during regular business hours.

Note:亚利桑那州要求所有圣atutory agents to complete and signForm M002: Statutory Agent Acceptance在约会。你需要的文件在有限公司njunction with your LLC’s Articles of Organization.

FAQ: Nominating a statutory agent

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
• Form M002: Statutory Agent Acceptance
• Form L041: Member Structure AttachmentorForm L040: Manager Structure Attachment
• Cover Sheet

This can be done online, by mail, or in person, alongside a $50 filing fee.

Before filing, you will need to make sure you have completed all forms correctly. You will need to have the following resources on-hand:

• Your statutory agent’s completed Statutory Agent Acceptance Form
• The names and addresses of your LLC’s members or managers, along with the attached structure attachment you choose.
• Your LLC’s information, including its name, classification, and principal address
• Your completed Cover Sheet, which includes expedited processing options.

For help with completing the form, visit ourArizona Articles of Organizationguide.

Note:If you're expanding your existing LLC to the state of Arizona, you will need to form aforeign limited liability company(LLC).

FAQ: Filing Arizona LLC Documents

Step 4: Complete Arizona LLC Publication Requirement

Arizona requires all 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

For more information, have a look at ourArizona Publication Requirement Guide.

Step 5: Create an Arizona LLC Operating Agreement

An188金宝搏官方网站is not required for an Arizona LLC, but having one is a good practice.

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?一个全面的操作协议确保188金宝搏官方网站ll LLC members are on the same page and reduces the risk of future conflict.

Read ourArizona LLC operating agreementguide for more information on operating agreements.

FAQ: Creating an Arizona LLC Operating Agreement

Step 6: Get an EIN for Your Arizona LLC

You can get anEmployer Identification Number(EIN), also known as the Federal Employer Identification Number or Federal Tax Identification Number, from the IRS for free. It is used to identify a business entity and keep track of a business's tax reporting – essentially acting as a Social Security number (SSN) for the company.

Why do I need an EIN?An EIN number is required for the following:

• To open abusiness bank accountfor the company
• For federal and state tax purposes
• To hire employees for the company

Where do I get an EIN?An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS:Youdo not need an SSNto get an EIN.Learn more here.

FAQ: Getting an EIN

Maintain Your Arizona LLC

After you’ve successfully formed your LLC and completed Arizona’s publication requirements, the next step is to sort out your taxes.

While these will largely depend on your specific niche and/or location, we’ve broken down the most common ones in the state, including:

• Transaction Privilege Tax
• Arizona Income Taxes
• Property Taxes

Transaction Privilege Tax

Instead of state sales tax, the Arizona Department of Revenue (ADOR) imposes the Transaction Privilege Tax (TPT) to retailers for the privilege of conducting business within this state. This is set at a general statewide rate of 5.6% for businesses selling tangible goods, but in practice can actually range up to as much as 11.2% due to the additional rates in effect in certain localities and industries.

It’s important to note that if liable to pay this tax, you’ll need to file anArizona Joint Tax Application (JT-1)to the Department of Revenue before your business can begin its operations. This also involves paying the appropriate filing fee, which typically varies between $1 and $50, depending on where your LLC is based.

Note:The Department of Revenue'sTax Rate Tablesprovide a comprehensive list of all business activities and industries that are subject to TPT, as well as their specific tax rates.

Arizona Income Taxes

In addition to your federal income tax responsibilities, there are several statewide taxes you may need to pay on revenue sourced within Arizona, including:

• Personal Income Tax:Arizona income tax currently uses a progressive system with a rate of 2.55% for taxable incomes below $27,273 (or $54,546 for joint filers) and 2.98% for incomes above this threshold. However, the state plans to simplify this by moving to a single, flat tax rate of 2.5% for all income levels in the future.
• Small Business Income (SBI) Tax:Small business owners have the option to file their earnings on a separate tax return, distinct from their personal income. In this case, they are taxed at a flat rate of 2.8%. It's important to note that this rate is set to decrease to 2.5% in the year 2025.
• Corporate Income Tax:In Arizona, corporations and LLCs with C corp elections are subject to a flat tax rate of 4.9% on all taxable income earned from business activities within the state.

Property Taxes

In Arizona, there is no statewide property tax, and this is instead set and managed by 15 county officials across the state. The process of calculating how much your business owes in property taxes and collecting it is handled by two officials:

• County Assessors:With the exception of certain centrally assessed properties (such as airlines, mines, railroads, and utilities), these county officials are tasked with identifying and coming up with a value for all the properties in their jurisdiction.
• County Treasurers:The treasurer in each Arizona county is responsible for collecting property taxes and ensuring they are distributed properly.

Note:You can find out more about how property tax works in your local area by taking a look at theArizona Association of Counties website.

Related Articles

• LLC Cost Arizona
• Arizona LLC Taxes
• Arizona LLC Operating Agreement
• Arizona LLC Statutory Agent
• How to File Articles of Organization in Arizona
• Arizona LLC Name Search

Arizona Business Resources

• Arizona State Government Corporation Division
• Contact the Corporations Division
• Arizona LLC Statutes