How to Start an LLC in Arizona: If you’re looking to start an Arizona LLC for $0, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC for free in Arizona. However, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost $0.
On this page, You’ll find all the steps that must be taken to ensure that your Arizona LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Arizona
- After Starting Your Arizona LLC
- Arizona Foreign LLC
- Arizona LLC Formation Review
How to Start an LLC in Arizona
An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.
If you wish to start an LLC, you must file your Certificate of Formation with the State and pay a filing fee of $50. While it’s the most important step, it’s not the only one. There are 5 other crucial steps to follow to get your LLC formed in Arizona. Below mentioned all 6 steps that explain everything you need to do to start an Arizona LLC in 2023. Let’s get started! You can always hire a professional LLC formation service in Arizona to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.
Step 1: Decide a Name for Your Arizona LLC
The first step while forming a limited liability company in Arizona is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
LLC Naming Guidelines in Arizona
There are a few specific requirements all the LLCs in Arizona have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Arizona can have the same name. ZenBusiness offers unlimited business name searches at $0.
- “Limited Liability Company”, “LLC”, “L.L.C.”, “LC”, “L.C.”, and “Limited Company” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Arizona State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|Arizona Business Entity Search – Online Name Search|
Name Reservation Form – PDF
Arizona LLC Name Search Guide – Instructions
Name Availability Standards – Guidelines
|Arizona Corporation Commission|
Corporate Filings Section
1300 W. Washington St.
Phoenix, Arizona 85007
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided on, then you can reserve your LLC name for 120 days. The name filing cost is $45 (Online) & $10 (By mail). In Arizona, once a business name is reserved, under the same name, it cannot be renewed again. To keep the name, you can transfer the name to someone else within that 120 days by filing a Name Transfer Application to the Arizona Secretary of State. For more details read our Arizona LLC Name Search Guide.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Arizona Secretary of State by filing DBA online and the filing fee of $10.
Recommended: You can do name search, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
ZenBusiness – ($0 for LLC Formation)
Apart from LLC formation, ZenBusiness offers customized website templates and business emails at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc. Here you can get everything you need for your business in one dashboard.
It is not legally mandatory to use the word LLC in your domain name or email. If you want you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Statutory Agent in Arizona
The second step to forming an LLC in Arizona is to appoint a Statutory Agent (also known as a registered agent in most states). A Statutory Agent is a person or business entity working on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Arizona. Hence, hiring a competent Arizona Statutory Agent for your LLC is necessary.
Make sure your registered agent is a resident of Arizona or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0/year), you also get registered agent service and other services at a very reasonable price.
These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Arizona. Some LLC formation services also offer standalone Arizona registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.
A person who is above 18 years of age and has a physical address in the state of Arizona can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of Arizona and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in Arizona.
There are a few reasons why you shouldn’t be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won’t be easy for you as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.
If an LLC is sued in Arizona, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are not separated anymore. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.
Registered Agent Consent Application
In Arizona, the registered agent (Statutory agent) has to sign a consent letter confirming consent to being Appointed in writing. This consent must include the following details,
- LLC name
- Name of the registered agent
- Signature of the registered agent
- Whether the registered agent is an individual or a business
This consent letter assures that the Registered Agent has given his nod to serve as an Agent. This letter is required to avoid any future discrepancy between the Registered Agent and LLC. The Acceptance of Consent can be filed and sent to the address Arizona Corporation Commission, Corporations Division – Examination Section, 1300 W. Washington St., Phoenix, AZ 85007. For more information on the same, read about how to change a registered agent in Arizona.
Step 3: File Articles of Organization in Arizona
The third and most important step in forming an LLC is to file the Articles of Organization. This Arizona Articles of Organization is a legal document that is required to register your business with the Arizona Secretary of State. It costs $50 (online and by mail filing) to file your formation certificate in Arizona. (Read more on LLC cost in Arizona).
The Articles of Organization include details like the name of the LLC, the registered agent’s name, address, employees’ details, and the company’s structure (member-managed or manager-managed). Before hiring employees in Arizona LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) in other states to Arizona, you must register as an Arizona Foreign LLC.
How to File Online
Go to the eCorp Online Service. You will get the login page. If you are already a subscriber then log in with your credentials. If not, then you have to Register with the eCorp website. Click on the buttons below to proceed. Read more about the Arizona Articles of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your LLC registration, then you can download form L010. Read the form thoroughly, fill it out, and send it to the address mentioned below. One must send 3 other documents with the Articles of Organization form. They are,
- Registered (Statutory) Agent Acceptance
- Member Structure Attachment OR Manager Structure Attachment
- Cover Sheet
Mailing Address: Arizona Corporation Commission
Corporate Filings Section
1300 W. Washington St.
Phoenix, AZ 85007
Processing Time: Normally, it takes around 30 business days (approx) to get your LLC formed in Arizona. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well. However, the document processing time can be changed due to various factors.
Recommended: Online LLC Formation service can provide all these documents way faster than usual time with lifetime customer support and 100% accuracy. We recommend using –
ZenBusiness – ($0 + State Fees) Online LLC Setup
Every LLC owner has to pay the filing fees to register their business in Arizona. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Arizona.
Step 4: Meet LLC Publication Requirements in Arizona
Any newly established LLC has to meet the Arizona publication requirements. Within 60 days of LLC formation, you must publish a Notice of your LLC formation in any of the approved newspapers for 3 consecutive weeks. The following details are required to mention in your Notice:
- LLC Name
- Name & Address of the Registered (Statutory) Agent
- The principal address of the LLC, if principal address of the LLC is different from the address of the Agent.
- Names of member(s) and manager(s)
- Addresses of members(s) and manager(s)
- Whether LLC is member-managed or manager-managed
The fee for publication varies from $30 to $300, depending on the place you’re publishing the notice. There are two counties, Pima and Maricopa, where this publication is not needed. Here is the list of Approved Newspapers in Arizona.
Step 5: Create Your LLC Operating Agreement in Arizona
Moving on to the fourth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing an Arizona LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Arizona LLC later. Hence, having an operating agreement may not be necessary but it is surely ideal.
Recommended: You can get a professionally made operating agreement for very less cost with ZenBusiness. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
ZenBusiness – ($0 + State Fees) Online LLC Setup
The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂
Step 6: Filing an LLC EIN in Arizona
The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business.
EIN is needed when the LLC hires employees. Hiring employees in Arizona LLC requires following specific rules and regulations. On the other side, EIN for Arizona foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN), one must fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
ZenBusiness – ($0 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your Limited Liability Company in Arizona. If you do it yourself, it should take you a long time to understand and do all the steps properly.
However, if you use ZenBusiness, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.
After Starting Your Arizona LLC
After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.
Apart from that, there are a few things you need to take note of,
- Get a company business bank account
- File Arizona business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees.
- File an Arizona LLC annual report or biennial report.
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.
Cost of Starting an LLC in the state of Arizona
LLCs can be formed for $0. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Arizona must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Arizona,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee (online)||$45 for 120 days|
|Articles of Organization Fee||$50|
|Publication Fee||$30 – $300|
|LLC Annual Fee||$0|
In Arizona, LLC name reservation is mandatory. If you wish to hold the name for some time without registering your LLC, then a Name Reservation is needed. However, it cannot be renewed after 120 days under the same name. In some states, Name Reservation is not mandatory. LLCs in Arizona have to pay a few state and federal taxes including sales tax and a business privilege tax. Read our guide on LLC costs in Arizona for more information.
Arizona Foreign LLC
If you are interested in forming a Foreign LLC in Arizona, then you need to file the Certificate of Foreign LLC to the Arizona Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Arizona SOS to form your foreign LLC in the state of Arizona. To know more in detail, check out our guide on Arizona Foreign LLC.
Reasons to Start an LLC in Arizona
Arizona is located in the western part of the nation. With industries such as copper mining, cotton trading, fruits, tourism, and ranching, Arizona has become one of the most diverse economies in America. Starting an LLC in the state of Arizona is easy and hassle-free. Mostly, there are many incentives and tax credits that encourage people to start their businesses in Arizona. Read more here on Arizona’s classification of LLC tax.
- Angel Investment Tax Credit – An individual can enjoy up to 35% of the total investment as an incentive under this program. An investment made to the ‘Bioscience Enterprises’ will qualify for this program and enjoy tax benefits.
- Innovative Programs – To encourage innovative challenges, the Arizona state offers an Innovative Challenge Grant. Up to $1.5 million can be received under this program to encourage tech innovations in the initial stage.
- Various Other Incentive Programs – Foreign Trade Zone, Small Business Innovative Research, Healthy Forest Enterprise, Arizona Job Training program, and other programs are available in the state. Under these programs, entrepreneurs can enjoy tax incentives while starting an LLC.
Enterprise Zone Programs
Like Alabama, there are some Enterprise zones in Arizona. If your LLC is operating or located in those specific areas, you may qualify for financial support. The local government provides various incentive programs to entrepreneurs to encourage more business and economic improvement in the under-developed areas.
Best Business Opportunities in Arizona
If you want to form an LLC in the state of Arizona, then what to do must be the first question you need the answer to. Many businesses are successfully established in Arizona and are contributing to the GDP of the state, but there are some new rising businesses. The list of such businesses is mentioned below.
Interior Designing Business
If you have some good combination-making skills and love to decorate homes and places, you can choose the interior designing business. It is one of Arizona’s best and flourished businesses as the prices people are ready for pay per hour are very high. All you need to have is some skills and convincing powers, and you are all set to go.
AC Installation And Repairs Business
If you look at Arizona’s weather conditions, it is one of the hottest states in the United States of America. That is why the requirement for air conditioning is very high in this state. If you are thinking of starting a new LLC in the state of Arizona, you can pick up the option of AC installation. Also, it is advised that you create a repair service as it is a recurring service that will make you more money.
The beverage business is also the best choice for an LLC startup in Arizona. These businesses are deficient in maintenance and high demand in the state. Due to high-temperature people almost consume soft and hard drinks with their food, which this business is also in high demand.
Bike Rental Businesses
Many tourist attractions places in Arizona bring people to the state to spend their holidays. Now every person can’t get their vehicle, and everyone knows that vacation with their vehicle is the best. That is why the bike renting business is also becoming an excellent choice among people.
Some other small business ideas are:-
- Lawn maintenance Business
- Delivery Business
- Tech Repair Business
Arizona LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an Arizona LLC. Click on the steps in this list to read the full detail.
- Name your Arizona LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Arizona, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming a Limited Liability Company in Arizona. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Meet the Publication requirements
In Arizona, a notice of LLC formation should be published in an approved newspaper. This is a mandatory task for all the newly established LLCs.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Arizona but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
Things to Consider While Starting LLCs in Arizona
This article has almost all the essential steps to start your LLC. However, there are a few things that you need to consider while forming your LLC. These factors are a business plan, your business accounts, business funding, business licenses, and business debts. These points are as important as the steps explained above.
The next thing is the tax structure of your LLC in the state of Arizona. LLCs get tax classification options at the time of registering their business. A multi-member LLC is generally taxed as a corporation, and a single-member LLC is taxed as a sole proprietorship. In either case, the LLC has to pay certain business taxes. At the time of registering, make sure to check finances at tax time.
LLCs have pass-through taxation. There is no tax levied on business income but on the personal income of the member. Hence, LLCs have to pay personal income tax whether earning from LLC or not. Another type of tax you have to carry is employment tax.
It may not be necessary to produce an operating agreement, but it is important for every LLC. It not only defines the form of business ownership, voting structures, and owners’ shares but also, it is good for future business partners as well. Later, if you plan to dissolve your LLC, your operating agreement will help you split up.
The next important point is to obtain business licenses. An LLC is a simple business structure. It takes 14-16 business days to process the formation documents. If you hire a professional, it might take 1-4 business days to process your formation document. As soon as your company is registered, you need to check the required licenses.
Before you obtain any license, get all the details of business licenses to know which one you need. You must pay fees for business licenses you obtain. LLC formation service providers can provide business license report services for you. You might need to spend a little to get that service. You can always check their business license services review before you appoint any professional service.
There are a few more things to be done when it comes to business activity. You must get a business credit card to separate your personal and business expenses. Appoint a business accountant for business checking and other financial decision-making. Have business tax accounts for taxation purposes. All of these must be added to your business formation plans. If you’re hiring a professional business provider, then you will get long-term business support from them at a reasonable cost. They will help you with tax filing, government filings, and other services. There can be some services that offer business dissolution as well. All you have to do is purchase their business kit and relax. The rest will be taken care of.
How Fast Can I Form an LLC in Arizona
Normally, it takes about 30 days for Arizona LLC to set up. However, you can expedite the process by additional fee payable to the state government. Taking help from online professional services may further reduce the processing time.
If you are wondering how fast can I form an LLC in Arizona, the answer is that it can be done in as little as 30 days if you have all of the correct paperwork, and if you choose to go with an expedited service. However, most applicants report that the process takes on average 50-55 days.
When forming an LLC in Arizona, there are several factors that will impact the time required to receive approval from the state. First, the filing fee. Every LLC owner must pay a filing fee to register their business. Although these fees are tax deductible, they are not free.
Next, you must file the articles of organization. These documents contain information on the members, the purpose of the business, and the registered agent. The articles also must include a cover sheet. It is possible to submit your articles of organization by mail or by electronic means. A certified mail will allow you to have your documents delivered to the state overnight. Depending on the number of documents, the cost of this service can vary.
Once the Articles of Organization are filed, your LLC can begin the formalities. For example, your members may be required to sign a declaration of incorporation. You may need to obtain an IRS Employer Identification Number (EIN), which will be used for federal tax purposes. Depending on the type of business you are forming, you may need to apply for additional business licenses. To do this, you can contact the State of Arizona Department of Revenue.
Depending on the jurisdiction in which you are forming your LLC, you may be required to publish a statement or ad in a local newspaper. This requirement is not required for entities incorporated in Maricopa or Pima counties, and is optional for foreign entities with registered agents in those counties. Some states have a specific deadline for publication. In some cases, failure to meet this deadline could result in the suspension of your LLC’s charter.
If you wish to save time, you can use an online formation service. Most of these services provide professional help with filings. They also provide customized templates for your website and custom emails to make communicating with your customers easier. One of these services, ZenBusiness, is especially great because they offer a low price and a range of customizable business email templates.
The state of Arizona maintains a database of available names, so you can check which of them are available before you file your Articles of Organization. Additionally, it is important to note that a name may be denied if it is not in the correct order. Choosing a proper business name is one of the most important steps in forming an LLC.
Lastly, you must record the affidavit of publication. You can do this by recording an affidavit of publication in your business records. If you are unsure of whether you should record this document, talk to a qualified attorney or professional registered agent.
If you are a resident of Arizona, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $50 (domestic LLC) and $185 (foreign LLC), LLC costs in Arizona include $0 for Annual Reports every year. LLCs are liable to pay sales tax of 4.9% every year.
It takes 30 business days to get an LLC in the state of Arizona if you file it online or by mail. It can be expedited with an additional fee. If you hire a professional LLC service, then it might take less than that. We recommend ZenBusiness, which has an impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report and pay $0 to the Arizona Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Arizona Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in the state of Arizona at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.