This guide to setting up an LLC Arizona includes steps-by-step instructions about filing paperwork, obtaining tax IDs, as well as how to set up company records.
LLCs are the most common business structure. They are cost-effective, flexible, and easy to operate. The legal formation of an LLC allows you to establish your business, limit your personal liability, and gives you tax flexibility. You will find the steps below helpful as you complete this process.
Step-by, step instructions for Arizona LLC
Check Name Availability
Your LLC’s legal title may not conflict or be confused with any other registered name. Conduct a name look to verify availability.
Name Search Arizona Corporation Commission- Corporations Division Name Reservation Optional Suffix: “A. According to its articles of incorporation, the name of a limited liability corporation shall read: 1. “Limited liability company” or “limited corporation” must be included. “, “L.C. “, “L.C.
2. Include the words “association”, “corporation” or “incorporated” or an abbreviation.
3. It is important not to use the words “bank”,” “deposit”,” “credit union”,” “trust company” in any way that could indicate or convey that the limited company is engaged or becomes active and substantial in the banking credit union and trust business.
Designate a Registered agent
Before you can officially file to establish your Arizona LLC you need to choose who your Arizona registered Agent is. Registered agents are appointed by a business as their legal representative to receive legal and government notices.
Each LLC must be registered by an agent according to state law. When Arizona Corporation Commission – Corporations Division files articles of organization, the registered representative is identified.
Arizona Certificate for Formation
Register the articles to form a limited liability corporation.
Agency: Arizona Corporation Commission- Corporations Division Form:
Articles from Organization
Instructions : Articles of Organization
Filing Method Mail, in-person, online. Agency Fee $50 + optional $35 expedite fees Turnaround: Please refer to the state-published processing times . These are usually about two months. $35 expedite fees, 7-10 business day Law:
ARS SS29-601 et seq
Notes: Complete application packages include:
- Form CFCVLR – Cover sheet
- Form L010, Articles of Organization
- Form L040 for Manager Structure Attachment and Form L041 for Member Structure Attachment
- Form L042 (Organizer Attachment, if applicable)
- Form M002 is Acceptance by Statutory Agent
- Payment with optional expedite fee
Instructions: The Arizona Corporations Commission will approve your formation and send you a notice with instructions for publishing. Agency Fee Newspaper and legal journal fees differ depending on the length of copy and publication; publishers’ fees are estimated at $200 Notes: Publication of an entity with a place to do business in Maricopa and Pima counties is not necessary. Publication for foreign entities is not required if the entity’s registered address is located within Maricopa and Pima counties.
Do you need proof of publication?
Affidavits to support publishing to A.C.C. Optional.
More information at Arizona Corporation Commission – Corporations Division
Establish Company Records
Your LLC must keep accurate and complete books and records. Your LLC’s documents begin with your filed articles. Your LLC will produce other official records like:
- Minutes of a meeting
- Operating agreement
- EIN verification letter
- Amendments and other filings of the LLC throughout its life
Organizations require a central tool to secure and access sensitive records.
Sign the Operating Agreement
You can draft an Operating Agreement by using a template. This is the governing document that governs the LLC. This agreement defines the basic rules of the LLC’s operation, such as the holding of an annual meeting. You will discuss and approve the agreement at your organizational meeting.
Host the Organizational Meeting
The organizational meeting is a first meeting of LLC members. For this meeting you will need your operating agreement as well as your filed articles. Keep the minutes of this meeting.
Get a Federal Employee Identification Number (EIN).
EIN is required if your LLC employs more than one person or has multiple members. EINs are also required to open bank accounts.
Agency: Internal Revenue Service Form:
Filing Method Mail, phone, or Online. IRS fee $0 Turnaround: Instantly online or by telephone 4 business day by fax. 4-5 weeks by postal mail Notes: The IRS website can only be accessed during specific hours. Before closing your session you should print your EIN. For additional guidance, visit IRS Pub1635: Understanding Your.
Get Arizona State Tax Identification Numbers/Accounts
Arizona does NOT offer a state-wide consolidated tax registration form. For each tax account, apply.
Arizona Joint Tax Application, Form JT-1) allows you to apply for Transaction Privilege Tax and Use Tax. It also includes Employer withholding and Unemployment insurance. Each license/location comes at $12.
Consider Electing C-Corp taxation or S-Corp taxation
Your LLC automatically receives pass through taxation. The vast majority of LLCs however, keep this tax category. Some LLCs have the option to choose S-Corporation or C-Corp tax treatment.
- S-Corp may be able to help owners who earn more that $75,000 per calendar year in saving on self-employment taxes.
- C-Corps have double taxation. Members pay taxes on the profits of the corporation, while members pay taxes when they receive their distributions. C-Corp treatment may allow you to benefit from low tax rates on retained earnings, if you have more than $250,000 in profits per owner.
Get business licenses and permits
The necessary licenses or permits are required in order to operate your business legally. Searching by business type and location using the Small Business Administration Business License & Permit search tool is the easiest way to navigate the vast array of federal, state and local requirements.
Arizona Business License
Arizona does not require the licensure of general business licenses.
Arizona does not have a state-level general business license. However local licenses may be required.
Keep your LLC afloat with ongoing filings
Federal and state tax returns must be filed.
For good standing with the secretary, many states require business entities to file an annually required report. Check out the table below to see if an annual report is required for LLCs in Arizona.
Arizona Corporation Annual Report Requirements:
Agency: Arizona Corporation Commission- Corporations Division Form: To start filing online, click the link “print form” or call the ACC to request a form. Filing Method Mail or online . Agency Fee $45 Turnaround: Current processing times. Expedited processing available starting at $35 Due: To locate the due date for your corporation, go to the page and enter the entity’s name in the search box. Then click on “search” Law:
Penalties: $9/month. A Notice of Pending Administration Dissolution will be sent to the corporation’s legal agent within 90 days. The Notice will notify the corporation that the annual report must be submitted within 60 days. Notes:
- All officers listed on the report should file.
- This annual report is not a way to change your registered agents.
- You can file online. Print the receipt page at end of process (after credit card payment pages) for your records.
- Be sure to include a cover sheet if you send your application by mail.