How to Start an LLC in Arizona for $0 (AZ LLC 2023)

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 🙂

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.

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.

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.

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.

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.

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.

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

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.

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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.

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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
Sales Tax	4.9%

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.

Investment Incentives

• 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.

Beverage Shops

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

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.

Forming an LLC (Limited Liability Company) in Arizona is an effective way to protect personal assets from business liabilities and debts. It also provides the flexibility of operating a business as an individual or with partners, and the tax benefits of being a separate legal entity from the owners. Arizona offers a straightforward process for forming an LLC, and with the right guidance, you can have your LLC up and running in as little as two weeks.

The first step in forming an LLC in Arizona is to choose a business name. The name must include the words “limited liability company” or the abbreviation “LLC.” It cannot be the same as any existing business name registered with the Arizona Corporation Commission, and it must comply with other state regulations. Once you have a name, you must register it with the Arizona Corporation Commission.

The next step is to prepare and file the Articles of Organization with the Arizona Corporation Commission. This document includes important information about the LLC, such as its name, purpose, and members. You can file the Articles of Organization online or in person. The filing fee is $50.

Once the Articles of Organization have been filed, you will have to draft an Operating Agreement. This document outlines the management structure and ownership of the LLC, as well as the rights and responsibilities of the members. It also establishes how the LLC will be taxed. The Operating Agreement is not required to be filed with the state, but it is recommended that you keep a copy for your records.

Once the Articles of Organization and Operating Agreement have been completed, you will need to obtain an employer identification number (EIN) from the Internal Revenue Service. This is the number that will be used for all tax filings. You can easily obtain an EIN online.

Once you have obtained the EIN, you will need to register the LLC with the Arizona Secretary of State. You can do this online or in person. The filing fee is $50. You will also need to register the LLC with the Arizona Department of Revenue. This is also done online or in person and the filing fee is $50.

Finally, you will need to obtain any necessary business licenses or permits. Depending on the type of business you are operating, you may need to obtain a business license from the Arizona Department of Revenue, or you may need to obtain a special permit from the Arizona Department of Environmental Quality or another state agency. You should contact your local government to determine which licenses or permits are necessary for your business.

By following these steps, you can have your LLC up and running in as little as two weeks. It is important to note that Arizona does not require LLCs to hold annual meetings, but you should consult an attorney to determine if this is necessary for your business. Additionally, you should consult an accountant to ensure that your LLC is properly registered for taxation purposes.

Overall, forming an LLC in Arizona is a relatively straightforward process. By taking the time to prepare the necessary documents and registering with the appropriate state agencies, you can have your LLC up and running in as little as two weeks.

F.A.Qs

In Conclusion

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.