Simple Steps to Start Your Arizona LLC
Arizona is ideally located as both a western and a mountain state, sharing borders with four other states and Mexico. Its geography makes it an ideal location for businesses who want to set their sights on expanding further afield.
Famed for its hot, desert-like climate, tourism is one of the main sectors of Arizona's economy. Built on the backbone of industries like cotton, fruit, cattle ranching and copper mining, Arizona's business climate has since expanded to strengthen an increasingly diverse statewide economy. The state is also well-served by universities and has developed a rich culture, including film, music and sports.
You can take advantage of opportunities in Arizona by forming an LLC.
Arizona Limited Liability Companies (LLCs) are a business entity designed for startups and small- and medium-sized businesses. Forming an LLC is fast, easy and inexpensive. LLCs offer many of the protections and advantages of large corporations without all the rules, regulations and compliance issues common to larger business entities.
Let’s start by looking at the advantages of forming an Arizona LLC.
Advantages of Forming an LLC in Arizona
Arizona LLCs have several benefits for business owners.
- The preparation to start an Arizona LLC is quick and easy: You can complete all the necessary forms and actions online to start your company. You can gather and prepare the information to start your business in an hour or two.
- An LLC limits your personal liability: Any liabilities created by your Arizona business (debts, obligations and other liabilities) are legally considered to be completely separate from your personal assets as the business owner or founder.
- Arizona LLCs are easy to maintain: LLCs are light on rules and regulations. There’s no need for boards of directors, complex rules and regulations or formal annual meetings.
- LLCs are very easy to manage: General administration is fast and easy. Add and amend members and make other changes with just a little paperwork.
- Taxes are simple: Any income you earn through your Arizona LLC is reported on your personal tax return. This means you won’t run into “double taxation” issues common with larger corporations.
- It’s easy to form your LLC: Once you have the information, you can then file through us. It typically takes seven weeks to form an LLC in Arizona, but paying for expedited filing (an additional $35) will shorten that time to five business days.
- Arizona LLCs are inexpensive to form: The current cost of forming your LLC is $50 ($85 with expedited service).
Start your Arizona LLC in Six Steps
STEP 1: Name Your Arizona LLC
- You will need a distinctive, original name for your LLC that’s not used by another business in Arizona
- To find out if another company is using your choice of business name, carry out an Arizona business entity name search
- The name should be unique and not able to be confused with the name of another Arizona business
- The name of your business must end with “limited liability company,” “limited company” or the abbreviations “L.L.C.,” “L.C.,” “LLC” or “LC”
- For example: “Arizona Desert Tours LLC” or “Garcia and Sons, Limited Liability Company”
STEP 2: Provide the Address for Your New Arizona LLC
An Arizona LLC must have a designated street address. That could be your home address (if you’re running the company from your residence), where your office is located or any physical address of your preference — even outside of Arizona. It cannot be a P.O. Box.
STEP 3: Assign a Registered Agent for Your Arizona LLC
Every Arizona LLC must have a “Registered Agent.” That could be you, the managing director, owner or a dedicated registered agent service. The Registered Agent in Arizona is someone who receives official legal and tax correspondence and has responsibility for filing reports with the Arizona Corporation Commission.
In Arizona, Registered Agents are known as “Statutory Agents,” so whenever we refer to “Registered Agents” below, note that we're also talking about Statutory Agents in Arizona.
At Incfile, all of our packages include a Registered Agent service that is free for the first year and just $119 per year thereafter. We also have a dashboard where you can log in and easily view any document your registered agent has received on your behalf. Here are a few reasons you might want to appoint Incfile as your Registered Agent service:
- The Registered Agent must have a physical street address in the state where you are forming the company. Some people establish companies outside of the state they live in and will need to use a Registered Agent service to provide the address.
- You always need to have someone on hand to receive important documents for your business during business hours (typically 9 a.m. to 5 p.m. Monday to Friday). Therefore, a person must always be available to sign for legal correspondence.
- The Registered Agent’s name and address are part of the public record and available through the Arizona Corporation Commission's website. If you would prefer your name and address are not published, this is a good reason to choose a Registered Agent service.
- If you change your Arizona business address or move out of state, you don’t need to file additional documentation with the Corporation Commission for the new address of your Registered Agent. You will need to set up a new Registered Agent service in the new state.
STEP 4: You Should Provide Names and Addresses of all Arizona LLC Members
Your Arizona LLC members are the people who own and run the business. They will be the individuals who withdraw profits from the business to pay themselves. Arizona requires you to list the names and addresses of all managers or members when you register the Arizona LLC. You can register these addresses as street addresses or P.O. Boxes.
STEP 5: You Need to File Articles of Organization With the Arizona Corporation Commission
Once you've gathered all the information together for your LLC, you’ll need to file a formal document with the Arizona Corporation Commission to create your LLC. This document is known as your Articles of Organization, and filing it starts the process of creating your Arizona LLC. You can do this online, mail in a form or have Incfile do it on your behalf.
STEP 6: You Can Create an Arizona LLC Operating Agreement
Arizona LLCs aren’t required to have an Operating Agreement, but they are extremely useful for several reasons. Your Operating Agreement covers how the business will be run, how managers and members are chosen, the rights and duties of members and several other key areas. Learn how to create your Operating Agreement here.
If you’re interested in having your Operating Agreement created for you, Incfile will draft a general Operating Agreement within most of our online business formation packages. It can also be selected as an add-on option in our Silver package. This Operating Agreement will be a basic template that you can make changes to anytime you see fit.
You can find lots more useful information on how to form an LLC here. It answers questions like:
- Who can form an LLC?
- Where should you form an LLC?
- When should you form an LLC?
- What are the ongoing responsibilities for an LLC?
Starting Your Arizona LLC: Useful Resources
Form an Arizona LLC Without Breaking the Bank
Incfile provides a cost-effective service to help you create your LLC. We guide you through the process and handle most of the administrative steps on your behalf, such as filing the Articles of Organization. Our basic package also provides free Registered Agent service for the first year. If you're looking for help starting an LLC, our comprehensive services provide outstanding value.