Everything you need to know about filing an LLC in Arizona. We’ll cover the paperwork, fees, and requirements so you can get started.
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In the state of Arizona, LLCs are formed by filing Articles of Organization with the Arizona Secretary of State.3 min read
An LLC, or limited liability company, is a popular choice for business owners who want to limit their personal liability for debts and obligations incurred by the company. LLCs are relatively easy to form and maintain, and they offer flexibility in how the business is organized and managed.
If you’re thinking of starting an LLC in Arizona, here’s what you need to know about the process of filing your Articles of Organization with the state.
How to File an LLC in Arizona
The first step in forming an LLC in Arizona is to file Articles of Organization with the Arizona Secretary of State. The Articles must include the following information:
• The name of the LLC and any assumed names under which it will do business
• The address of the LLC’s principal office
• The name and address of each member of the LLC • The name and address of each manager or managing member • The name and signature of the person authorized to sign the Articles • The effective date of the Articles, if different from the date of filing • A statement that the LLC will be managed by one or more managers, unless all members are managers • A statement that the duration of the LLC is perpetual or a stated expiration date • The street address, city, state, and zip code where service of process against the LLC may be delivered • Any other information required by law
Once you have gathered all the required information, you can file your Articles online through the Arizona Secretaryof State website or by mail. The filing fee is $50.
After your Articles have been filed and approved, you’ll need to obtain an Employer Identification Number (EIN) fromthe IRS. You can apply for an EIN online, by fax, or by mail. There is no fee for obtaining an EIN.
Next, you’ll need to draft an Operating Agreement for your LLC. This document outliningthe rules for running your LLC does not need to be filed withthe state, but it’s a good idea to have one in place to avoid disagreements later on.
Finally, you’ll need to comply with all state and local licensing requirements for your business. For example, if you plan to sell food products, you’ll need to obtain a food handler’s permit fromthe Arizona Departmentof Health Services.
Once you have completed all these steps, your LLC will be up and running!
What is an LLC?
A limited liability company (LLC) is a business structure in the United States wherein the owners are not personally liable for the company’s debts or liabilities. LLCs are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. This guide will explain how to file an LLC in Arizona.
An LLC is formed by filing articles of organization with the Arizona Corporation Commission. The articles must include the LLC’s name, address, duration, purpose, and the names and addresses of its managers and members. The LLC must also have an operating agreement, which sets forth its member’s rights and duties, as well as other matters related to its operation.
Once the LLC is formed, it must obtain a business license from the county in which it intends to operate. The LLC will also need to register with the Arizona Department of Revenue and obtain an employer identification number (EIN) from the Internal Revenue Service.
An LLC is not required to have a board of directors or shareholders’ meetings like a corporation. However, it must keep minutes of all meetings held by its members. And like any other business, an LLC is required to keep accurate financial records and file annual tax returns.
The Benefits of an LLC
There are many benefits of forming an LLC in Arizona, including:
-Personal Asset Protection: One of the main reasons to form an LLC is for personal asset protection. If your LLC is sued, your personal assets (such as your home, car, and savings) will be protected.
-Tax Advantages: LLCs can choose how they want to be taxed, either as an S corporation or a C corporation. This flexibility provides significant tax advantages.
-Simplified Recordkeeping: LLCs are not required to keep as detailed records as corporations. This makes recordkeeping much simpler and less time-consuming.
If you’re thinking of forming an LLC in Arizona, these are just a few of the benefits you’ll enjoy. Talk to a qualified attorney to learn more about the specific advantages that LLCs offer in Arizona.
How to File an LLC in Arizona
To form an LLC in Arizona, you must file Articles of Organization with the Arizona Corporation Commission and pay the filing fee. You can do this online, by mail, or in person. The Articles of Organization must contain the name of the LLC, the LLC’s purpose, the name and address of the LLC’s registered agent, and the name and address of each member of the LLC. Once you have filed the Articles of Organization, you will need to draft an Operating Agreement.
Step One: Choose a Name for Your LLC
The name of your LLC must include the phrase “Limited Liability Company” or “L.L.C.” It can also use the abbreviation “LLC” or “LC.” The name cannot include certain words that might confuse people about the nature of your business. These include “bank,” “insurance,” “corporation,” or “incorporated.” You can check to see if your desired name is available by searching the state business registry online.
Your LLC name must be distinguishable from any other business entity already registered with the state of Arizona. This includes other LLCs, corporations, and limited partnerships. If your desired name is already taken, you can file a request for an LLC name change with the state.
Step Two: Appoint a Statutory Agent
An LLC must appoint and maintain a statutory agent in Arizona. A statutory agent is an individual or business entity that agrees to accept legal papers on behalf of the LLC. This includes process servers and notices from the state regarding filings and annual report requirements. The statutory agent must have a physical address in Arizona and be available during normal business hours to accept service of process. You cannot serve as your own statutory agent.
Your LLC can change its statutory agent at any time by filing a notice of change with the state. You will also need to provide the new contact information for the statutory agent, as well as their consent to serve in this role.
Step Three: Prepare and File Articles of Organization
To form an LLC in Arizona, you must prepare and file Articles of Organization with the state corporation commission. The articles must include:
-The LLC’s name and address
-The name and address of the Statutory Agent
-The names and addresses of all members
-The duration of the LLC (if not perpetual)
You will also need to pay a filing fee when you submit your Articles of Organization. The current fee is $50 for domestic LLCs and $175 for foreign LLCs
Step Two: Appoint a Statutory Agent
Your LLC must have a statutory agent in Arizona. A statutory agent is an individual or business designated to receive official legal and tax correspondence on behalf of your LLC. The address of your statutory agent will be on public record with the state.
You may appoint any individual or business located in Arizona as your LLC’s statutory agent, as long as they agree to accept service of process on your behalf. An individual must be 18 years of age or older and have a physical street address in Arizona where process Server can deliver legal papers during normal business hours.
Businesses that may act as your LLC’s statutory agent include:
-A domestic or foreign corporation
-An Limited Partnership (LP)
-A Limited Liability Partnership (LLP)
-A Limited Liability Company (LLC)
Step Three: File the Articles of Organization
The third and final step in How to File an LLC in Arizona is to file the Articles of Organization with the Arizona Corporation Commission. The Articles of Organization is a document that officially creates your LLC.
Once you have filed the Articles of Organization, you will need to pay a filing fee and wait for the LLC to be officially registered. The registration process can take up to two weeks.
After your LLC has been registered, you will need to obtain an Employer Identification Number (EIN) from the IRS. You will need this number when you file your taxes and open a business bank account.
Step Four: Create an Operating Agreement
An LLC’s operating agreement is similar to a partnership agreement or a corporation’s bylaws. It’s a document that outlines the ownership and operating procedures of your LLC. This document is not required by the state of Arizona, but it’s a good idea to have one.
If you don’t have an operating agreement, your LLC will be governed by the state’s default rules, which may not be what you want. For example, the state default rule for voting is that each member gets one vote, regardless of how much money they have invested in the LLC.
Creating an operating agreement gives you the flexibility to tailor the rules of your LLC to fit your specific needs. You can include anything in your operating agreement that you want, as long as it doesn’t conflict with state law. Some common topics that are covered in an operating agreement include:
-How new members will be admitted to the LLC
-How decisions will be made
-What happens if a member wants to leave the LLC
-How profits and losses will be distributed among members
-What happens if the LLC is dissolved
You don’t have to use a special form or template to create your LLC’s operating agreement. You can just use a regular word processing document. Once you’ve created your operating agreement, give copies to all of your LLC’s members and keep a copy for yourself.
Step Five: Obtain an EIN
You will need to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). You can do this online, by fax, or by mail. You will need to have your Articles of Organization and your SS-4 form when you apply.
After you have gathered all of the required documentation, you will need to submit it to the Arizona Secretary of State. You can do this online, by mail, or in person. The filing fee is $50. Once your LLC has been approved, you will need to obtain an Employer Identification Number (EIN) from the IRS. You will use this number to open a business bank account and file your taxes. Congratulations—you are now the proud owner of an LLC in Arizona!
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