Starting a business is an exciting journey, and choosing the right structure for your business is one of the most important decisions you’ll make. If you’re looking to start a Limited Liability Company (LLC) in Arizona, you’re in the right place. Arizona offers a favorable environment for business owners, and forming an LLC here can be a great choice for many reasons, including liability protection and tax benefits.
In this comprehensive guide, we’ll break down the step-by-step process of starting an LLC in Arizona in 2025, along with helpful tips to ensure your business starts on the right foot. We’ll also cover important topics such as what to do after your LLC is formed and how to comply with Arizona’s legal requirements.
Costs Summary
| Cost | Amount (USD) |
|---|---|
| Articles of Organization Filing | $50 |
| Optional Expedited Processing | $35 |
| Certified Copy of Articles | $30 |
| Publication Requirement | Varies ($30–$200 depending on the newspaper) |
| Registered Agent | Varies ($50–$300 per year) |
Steps to Forming an LLC in Arizona
Forming an LLC in Arizona is a straightforward process that offers liability protection and tax benefits. By following a few essential steps, you can legally establish your business.
1. Search Your LLC Name
The first step in forming an LLC in Arizona is choosing a name for your business. Your LLC’s name must be unique and distinguishable from other businesses registered in the state. Here are a few rules to keep in mind when naming your LLC:
- The name must include “Limited Liability Company” or an abbreviation like “LLC” or “L.L.C.”
- It cannot contain words that might confuse your LLC with a government agency (for example, “FBI” or “State Department”).
- Your LLC name cannot be misleading about the type of business you are conducting.
How to Check Name Availability in Arizona
Before you start printing business cards or designing logos, you need to check if the name you want is available. The Arizona Corporation Commission (ACC) offers an online tool to search for business entity names. This will let you know if there’s already an LLC or other business with the name you’ve chosen.
If your name is available, great! If not, you will need to come up with a new one or consider modifying your original choice.
2. Choose an Arizona Registered Agent
In Arizona, every LLC is required to have a statutory agent (also known as a registered agent). This person or business entity will receive official notices, tax forms, and legal documents on behalf of your LLC.
Your statutory agent must:
- Have a physical address in Arizona (P.O. Boxes are not accepted).
- Be available during regular business hours to receive documents.
- Be either an individual or a business authorized to conduct business in Arizona.
Can I Be My Own Statutory Agent?
Yes, you can serve as your own statutory agent if you live in Arizona and are available to receive documents during business hours. However, many business owners choose to hire a professional registered agent service to maintain privacy and ensure they never miss important mail.
We recommend Northwest Registered Agent for their reliable service, privacy protection, and customer support. They’ll help ensure your LLC stays compliant with Arizona laws.
3. File Arizona LLC Articles of Organization
Once you’ve chosen a name and appointed a statutory agent, the next step is to file the Articles of Organization with the Arizona Corporation Commission. This document officially establishes your LLC and includes key information about your business.
Information Required for the Articles of Organization:
- LLC Name: The name of your LLC.
- Statutory Agent Information: The name and address of your statutory agent.
- Management Structure: You’ll need to indicate whether your LLC will be managed by members (owners) or managers.
- Address: The physical address of your LLC (not a P.O. Box).
Filing Fee and Processing Time
Filing your Articles of Organization online costs $50. You can also file by mail, but online filing is usually faster and more convenient.
Once submitted, it typically takes around 14–16 business days for the Arizona Corporation Commission to process your filing. If you need faster processing, you can choose expedited service for an additional fee.
4. Complete the LLC Publication Requirement
Arizona has a unique requirement that most newly-formed LLCs must meet: you must publish a Notice of LLC Formation in a newspaper for three consecutive weeks. The purpose of this requirement is to notify the public of your LLC’s existence.
How to Fulfill the Publication Requirement
Once your LLC is formed, you need to choose a newspaper that is approved by the Arizona Corporation Commission. The newspaper will run the Notice of LLC Formation for three consecutive weeks. Afterward, the newspaper will provide you with an Affidavit of Publication, which proves you have met the requirement.
- Cost of Publication: The cost can vary significantly depending on the newspaper you choose. On average, it ranges from $30 to $300, but it’s worth calling around to get quotes.
- Exemption: If your LLC is located in Maricopa or Pima County, the publication requirement may not apply, as the ACC handles this for you in these counties.
You’ll need to keep the Affidavit of Publication in your records, but you do not need to file it with the Arizona Corporation Commission.
5. Create an Arizona LLC Operating Agreement
Though not legally required in Arizona, an Operating Agreement is highly recommended for your LLC. This internal document outlines the ownership structure, management, and operation of your LLC.
The Operating Agreement can address the following:
- Ownership: The members (owners) of the LLC and their respective ownership percentages.
- Management: How the LLC will be managed—whether by its members or by hired managers.
- Distribution of Profits: How profits and losses will be shared among members.
- Dissolution: The process for dissolving the LLC if it needs to be terminated.
Having an Operating Agreement helps prevent disputes between LLC members and provides clarity in case of any disagreements.
6. Obtain an EIN for Your LLC
An Employer Identification Number (EIN) is required if your LLC plans to hire employees, open a business bank account, or file certain tax returns. It’s essentially the business equivalent of a Social Security Number.
Fortunately, obtaining an EIN is free and easy. You can apply for one directly through the IRS website. The process only takes a few minutes, and once you submit the application, your EIN will be issued immediately.
What to Do After Your LLC Is Approved
Once your LLC is officially formed, there are still a few steps you’ll need to take to ensure everything is set up for your business to operate smoothly.
Open a Business Bank Account
It’s essential to separate your personal and business finances. Opening a business bank account is a simple but crucial step in keeping your personal assets protected. Most banks will require your EIN and Articles of Organization to open an account.
Apply for Necessary Business Licenses and Permits
Depending on the nature of your business, you may need additional licenses or permits to legally operate in Arizona. The Arizona Department of Revenue and your local city or county government will have information about which permits you need.
- Sales Tax Permit: If you plan to sell taxable goods or services, you must apply for a sales tax permit through the Arizona Department of Revenue.
- Professional Licenses: If your business falls under regulated industries like healthcare, real estate, or construction, you may need to obtain professional licenses.
Check with local authorities and the Arizona Department of Revenue to ensure you comply with all state and local regulations.
File Taxes
In Arizona, LLCs are generally considered pass-through entities for tax purposes. This means that your LLC’s profits and losses pass through to your personal tax return, and you pay taxes on the business income at the individual level. However, depending on your business activities, you may need to file certain state taxes.
Arizona has a flat corporate income tax rate of 4.9%, which applies to LLCs taxed as corporations. For LLCs taxed as sole proprietors or partnerships, you’ll report business income on your personal income tax return.
It’s advisable to work with a tax professional to ensure compliance with all tax laws and regulations.
Arizona Corporation Commission Contact Info
If you need assistance or want to check the status of your LLC, you can contact the Arizona Corporation Commission (ACC). Here’s the contact information:
- Website: Visit the Arizona Corporation Commission’s website for more information and online filing.
- Phone: You can reach the ACC at (602) 542-3026 for any questions related to LLC formation.
- Mailing Address: 1300 W. Washington Street, Phoenix, AZ 85007.
Conclusion
Starting an LLC in Arizona offers entrepreneurs a range of benefits, from liability protection to flexible tax treatment. The process, while straightforward, requires attention to detail to ensure compliance with state regulations. By following the steps outlined in this guide, you can efficiently establish your LLC and start operating your business with confidence.
Choosing a unique name, selecting a reliable statutory agent, and filing the Articles of Organization are the critical first steps in forming your LLC. Don’t forget the important publication requirement, which is unique to Arizona, and always consider drafting an Operating Agreement to avoid potential internal conflicts in the future.
Once your LLC is up and running, obtaining an EIN, opening a business bank account, and securing any necessary licenses and permits will help set your business up for success. Additionally, understanding Arizona’s tax structure and ensuring you meet all state requirements will keep your LLC compliant and help prevent costly mistakes.
While the process of starting an LLC in Arizona is relatively simple, it’s essential to stay organized and informed throughout the journey. Whether you’re new to entrepreneurship or have previous business experience, taking the time to complete these steps properly can save you time, money, and frustration in the long run.
Remember, if you ever feel uncertain about any part of the process, don’t hesitate to seek advice from legal or business professionals. Starting an LLC is an exciting milestone, and with the right approach, you can ensure your business thrives in the competitive Arizona market. Best of luck in your entrepreneurial journey!
FAQs
How long does it take to form an LLC in Arizona?
The processing time for filing Articles of Organization online is usually 14–16 business days. You can expedite the process for an additional fee.
Can I form an LLC in Arizona if I’m not a U.S. resident?
Yes, Arizona allows foreign nationals to form an LLC, but you must have a statutory agent located in Arizona who can accept legal documents on your behalf.
Do I need an Operating Agreement?
While Arizona law does not require you to have an Operating Agreement, it is highly recommended. This document outlines your LLC’s internal operations and helps prevent future disputes.
Are there annual fees or reports for Arizona LLCs?
Arizona does not require LLCs to file annual reports. However, you must file and pay state taxes as required. Make sure to stay on top of your LLC’s tax obligations.
Can I change my LLC’s name after formation?
Yes, you can change your LLC’s name by filing an Articles of Amendment with the Arizona Corporation Commission.
