How to Start an LLC in Phoenix, Arizona

Why Start a Phoenix LLC?

As Arizona's largest city, capital, and economic center, Phoenix presents a compelling case for entrepreneurs looking to establish a new business.

For starters, Phoenix's Southwestern location puts it in relatively close proximity to major cities Las Vegas, Los Angeles, San Diego, Tucson, and Albuquerque. So, if your business involves moving goods between cities, Phoenix's strategic location can give you access to faster shipping times and lower transportation fees.

Despite its convenient location, Phoenix also boasts a lower cost of living (and, therefore, of doing business) than many other cities of a similar size. For instance, the cost of living in Phoenix is a whopping 25% lower than the cost of living in Los Angeles.

But don't think that Phoenix's affordability indicates a stagnant economy or population. Its GDP growth has far outpaced that of other cities in recent years, and its population of about 5 million people is expected to continue growing steadily. That means your Phoenix-based business will enjoy an ever-growing pool of customers.

Benefits of starting a Phoenix LLC:

Curious about the benefits of starting an LLC in Phoenix? Here are some of the most prominent:

• Tax incentives: In an effort to encourage economic growth and support small businesses, the Arizona state government offers a variety of tax incentives. The Quality Jobs Tax Credit, for example, rewards businesses for creating high-quality employment opportunities.

• Low corporate taxes: If you choose to have your LLC taxed as an S Corp, you'll be subject to Arizona's corporate tax rate, which is lower than that of many other states (and nearly half of neighboring California's).

• Plentiful resources: Phoenix has a wealth of resources designed to help small businesses succeed (more on those later).

• Large skilled workforce: Phoenix's growing population doesn't just represent possible customers — it also gives you access to a broad array of skilled workers.

• Tourism industry: With tens of millions of people visiting Phoenix each year, the city is bursting with tourists who all have the potential to become your customers.

How to Form a Phoenix LLC Yourself in 6 Steps

You can launch your Phoenix LLC in 6 steps:

1

Choose a Unique Business Name and Complete a State Business Search

Give your business an identity of its own by choosing a one-of-a-kind name for it (hint: a tool like our Business Name Generator can make the brainstorming process faster). When selecting your preferred ideas, try to pick a business name that's creative, easy to spell, easy to pronounce, and highly memorable.

After settling on a favorite, make sure it's not already taken by checking the business name database provided by the Arizona Secretary of State. Also ensure it adheres to Arizona's naming policies.

2

Provide an Official Business Address (or Get a Virtual Address)

It's crucial to designate an official physical address for your LLC's location. This can be used to form your business and receive important correspondence from clients, contacts, and vendors.

If your business doesn't have its own physical address, don't sweat it — with the help of a Virtual Address, you won't have to resort to using your personal address. Instead, a Virtual Mailbox service will give you a real Arizona street address you can legally use to form your business, all while keeping your home address private and enabling you to access your mail from anywhere.

3

Assign a Registered Agent

Like all other states, Arizona requires registered businesses to name a Registered Agent. That person will receive legal and official mail on the business's behalf. In Arizona, this role is officially referred to as a Statutory Agent.

While it's technically possible to serve as your own Registered/Statutory Agent, we don’t recommend doing so. Use a professional Registered Agent service instead, and you can rest easy knowing nothing will fall through the cracks and no due dates will pass you by.

4

File Your Articles of Organization With the Arizona Corporation Commission

Once all the fundamentals of your business are nailed down, you can make it official by filing your Articles of Organization with Arizona's Corporation Commission (ACC).

You'll need to complete your Articles of Organization by providing key info about your business.

You must also include the Statutory Agent Acceptance form, along with the Articles of Organization and the required filing fees.

Once your form is completed, you can file it by mailing or hand-delivering it to:

Note that Arizona is one of the few states to require publication when forming an LLC. If your business is in Maricopa County (where Phoenix is located) or Pima County, the ACC will do so for you. See the ACC's instructions for more details on publication requirements.

What Are the Fees and Requirements to Form a Business in Phoenix?

5

Get an Employer Identification Number (EIN) From the Internal Revenue Service

An Employer Identification Number (EIN), also known as a Tax ID Number, is a unique number issued to businesses by the U.S. Internal Revenue Service (IRS). If you plan to hire employees and pay employment taxes, you'll need an EIN to do so. An EIN is also required for multi-member LLCs taxed as partnerships.

You can obtain an EIN by applying for one directly through the IRS. Or, you can use our EIN filing service and we'll do the work for you.

Other Phoenix LLC Types

Professional LLC

This type of LLC offers professional services such as legal, medical, and accounting services. To create a professional LLC (PLLC), follow the instructions laid out by the Arizona Department of Real Estate.

Find out more about PLLC vs. LLC and which option is right for you.

Foreign LLC

If you formed your LLC in another state but want to do business in Phoenix (or anywhere else in Arizona), you'll need to register it as a foreign entity. See the ACC's foreign entity guidelines for more details.

Learn more about Arizona’s foreign LLC registration.

Helpful Resources for Phoenix, Arizona

Looking for more information about starting and maintaining a Phoenix LLC?

For general information, check out the services and resources offered by various government organizations: