Arizona LLC Formation Guide

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.

Overview

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

  1. 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 search

    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.

    ARS SS29-602

  2. 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.

  3. Arizona Certificate for Formation

    Register the articles to form a limited liability corporation.

    Agency: Arizona Corporation Commission- Corporations Division
    Form:
    Articles from Organization
    Instructions:
    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
  4. Publish

    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.
  5. Do you need proof of publication?

    NOT REQUIRED

     

    Affidavits to support publishing to A.C.C. Optional.

    More information at Arizona Corporation Commission – Corporations Division

  6. 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.

  7. 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.

  8. 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.

  9. 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:
    IRS SS-4
    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.
  10. Get Arizona State Tax Identification Numbers/Accounts

    Arizona does NOT offer a state-wide consolidated tax registration form. For each tax account, apply.

    Guidance:

    A Guide to Arizona Taxes
    Submit to
    Arizona Department of Revenue

    http://www.azdor.gov/

    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.

  11. 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.
  12. 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

    NOT REQUIRED

     

    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.

  13. 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:
    A.R.S. A.R.S.
    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.
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