Limited Liability Company in Arizona

You can get up and running as a business fairly fast when you register your business as a limited liability company in Arizona. A shortened name for this business entity is an LLC. To begin the process, you need to choose a name first, then obtain the services of a statutory agent. You have to follow these two steps first before you register your business.

You’ll register your business with the Arizona Corporation Commission or ACC. This part of the process enters your business into the state’s public record system.  

After you file the required documents, you’ll need to draft and create an operating agreement to ensure everyone is clear about the company’s operations. While you don’t have to file an operating agreement with the state, you should have one on hand to resolve any internal disputes that occur periodically.

You also need to register your business with the Internal Revenue Service or IRS. In addition, Arizona wants LLCs to publish notice of their formation in an approved newsletter. 

Step Number One: Choosing a Unique Name

The name of your LLC must be unique so there are no conflicts with the names of other businesses in the state’s database. Therefore, you need to go to the Secretary of State’s website to make sure the name you’ve selected has not already been chosen. You should have a backup name in mind just in case you find that the name you want is already in use.

How to Select a Name on the SOS Database

To enter a name, go to the webpage and select the Name tab, which will open up the form for reservations. You’ll then click on a drop-down Online Entity Name Reservation tab. Enter the chosen name into the space listed under Name. Use a drop-down menu under the category, Entity Type, to choose the entity type you want to search – normally, in most cases, LLC or Corporation.

You’ll next tap on Check Name to start a search from the business entity database. During this stage of the process, you’ll be able to determine if the name is available for use. If it is, a section will appear that communicates this message. You can also choose to reserve the name at this time.

Therefore, the first step in forming an Arizona LLC is to choose the name first. This information applies to anyone who forms a domestic LLC in the state of Arizona or is a resident doing business within the state.

Forming a foreign LLC in Arizona involves establishing an LLC from a different state. If you live and work in another state, registering a foreign LLC in Arizona follows a different process. So, you want to use the information herein to create an LLC if you currently reside and conduct business within the state.

Official Naming Requirements

As noted, you’ll need to determine if the name you choose has already been taken. This follows the legislation set out in A.R.S. § 29-3112 for LLC naming. According to state law, the official name must be unique to businesses that have registered within the state. 

Step Two: Getting a Statutory Agent

It’s best to appoint a separate statutory agent, especially if you want to keep on good terms with the state. You can incur the state’s wrath if you’re unavailable to accept its correspondence.

Also, you can’t use a P.O. Box, as all notices must be received in person. Therefore, your agent must be available during regular business hours from 8:00 am to 5:00 pm during the working week.

The agent you choose must confirm the appointment in writing. This is done by completing an acceptance form, which is submitted along with the company’s Articles of Organization. If you don’t retain the services of a statutory agent, the state has it in its right to dissolve your Arizona LLC if it cannot contact you.

Also, if you’re sued and an agent cannot be found, the case could go forward without your knowledge. While this agent is referred to as a statutory agent in Arizona, it may be referenced as a registered agent as well.

Step Three: Filing the Articles of Organization

Your next step, during formation, is to file articles of organization. This is done by filing the paperwork with the Arizona Corporation Commission (ACC). Once you complete this step, your LLC is officially approved for business. The ACC charges a $50.00 fee for the filing.

The Information You’ll Need

To form your Arizona articles of organization, you’ll need to have the following information ready:

  • The LLC name
  • The name of the statutory agent and their address with a separate agent acceptance agreement.
  • Added info, if you’re forming a professional LLC (PLLC), or a lawyer, doctor, or similarly professional
  • Your company’s business address (this may be different from the registered address)
  • Whether your LLC will be manager-managed or member-managed. While owners of the LLC govern a member-managed LLC, an appointed manager oversees a manager-managed LLC.
  • The signature of the organizer of the LLC.

You only need to file the articles of organization for your Arizona once. If you need to make future changes (such as replacing your statutory agent), you’ll need to file articles of amendment form with the ACC and pay the appropriate fee.

Forming Your LLC and Taxation

Some business owners prefer to delay filing LLC paperwork until January 1 of the coming tax year. They do this to avoid paying taxes for the current tax year. 

The Effective Date of the LLC

If the ACC approves your LLC filing, the effective date will be the submission date. Even if the state takes some time to mark your submission as filed, the submission date is still considered the date of filing.

For instance, if you file your LLC on January 1 but are not approved until January 31, your effective date is still the first of January. 

You also can tell the state you’d prefer to have the effective date moved up. In this case, you can choose to have the official date set at a time up to 90 days past the date you submit the filing. 

Creating an Arizona Limited Liability Company: Know What to Expect 

When forming an Arizona limited liability company, it helps to be prepared. Hopefully, the above information will give you the information needed to make a successful filing quickly and easily.

Speed Up the Process by Contacting the Corporation Center Today

The Corporation Center can make forming an LLC in Arizona easy and hassle-free. Get the help you need by phoning (800) 580-4870 today. You can be ready to do business in less than a week.