How to Form an LLC in Arizona

Co-authored by Clinton M. Sandvick, JD, PhD

Last Updated: April 19, 2023 References

A limited liability company (LLC) is a business structure that protects owners from personal liability for business debts while the profits and losses of the business are passed to the owners and reported on their personal tax returns. Many businesses can benefit from forming a limited liability company (LLC) as this structure protects the owners from losing any personal possessions due to business debt. You can operate your LLC as a single member or with other people. The regulations for forming a LLC differ by state and understanding the requirements in Arizona will help you be prepared to form your LLC.

Part 1

Part 1 of 2:

Laying the Groundwork for your LLC

1
Choose a business name. The name of your business must contain the words "limited liability company, or "limited company," or the abbreviations "L.L.C.", "L.C.", "LLC," or "LC." Your business name cannot include any of the following words: "association, " "corporation," "incorporated," or any abbreviations of those words.^{[1]
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Research source}The name you choose should distinguish you from other existing businesses.
- Search to see if the name of your business is available.
- You must seek approval from the Arizona Corporate Commission if your business name includes any of the following words: Bank; Banker; Banking; Banc; Banco; Banque; Credit Union; Deposit; Savings Association; Building Association; Savings and Loan Association; Building and Loan Association; Savings Bank; Thrift; Trust; or Trust Company.^{[2]
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2
Consider reserving your business name. Although it is not required, it is a good idea to reserve your business name. You can reserve a name for 120 days. This is helpful if you need time to get the rest of the paperwork together. It costs $45 to reserve an LLC name.
- You can reserve the entity name online or submit a paper application.
3
Prepare an operation agreement. An operating agreement is not required, but it is good to have. The agreement outlines how the LLC will be governed. Essential elements of an operation agreement are the percentage of members' ownership, voting rights and responsibilities, powers and duties of the members and/or managers, buyout rules, allocation of profits and losses, and meeting schedules. Operation agreements are flexible documents and are modified based on the needs of the business.
- The Arizona Corporation Commission (ACC) recommends that all businesses have a written operation agreement.
- An operating agreement is usually 5 to 20 pages long. Examples are available online.
4
Appoint a statutory agent. A statutory agent is a person or entity that will be responsible for accepting and legal documents or lawsuit papers on behalf of the LLC. The statutory agent must have a valid Arizona street address (P.O Box or personal/private mail box is not acceptable). All official notices from the ACC will be sent to the statutory agent.
- Personal/private mailboxes are rented through a provider such as UPS. These are not acceptable for an Arizona LLC.
- A statutory agent can be an individual or business who is authorized to conduct business in Arizona. The LLC must be different from the Statutory Agent.
- Individual statutory agents must be at least 18 years of age, be a full-time permanent resident of Arizona, and have a full-time permanent address (physical or street address).
- Statutory agents must accept the appointment in writing.
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Part 2

Part 2 of 2:

Forming your LLC

1
File an Articles of Organization. - You will need to submit your Articles of Organization to the Arizona Corporation Commission. The articles must include the LLC's name and address, the LLC's duration (the length of time your LLC will operate), names and addresses of the LLC's managers or members, and the organizer's signature.
- It costs $50.00 to file the articles. If you would like expedited processing, you will need to pay an additional $35.00.
- Articles can be submitted electronically, faxed (602-542-4100), or mailed to the Arizona Corporation Commission Corporate Filings Section at 1300 W. Washington St., Phoenix, Arizona 85007
- Expedited applications are processed within 5 business days. Regular processing usually takes 30 business days or less.
2
Apply for an Employer Identification Number (EIN). All new LLCs are required to have an Tax ID number (i.e. EIN). Your EIN is issued by the Internal Revenue Service (IRS). You will need to file a "Form SS-4, Application for Employer Identification Number."^{[3]
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Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source} You can apply for your EIN online, by telephone, by fax, or by mail.^{[4]
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Internal Revenue Service
U.S. government agency in charge of managing the Federal Tax Code

Go to source}
- Visit www.irs.gov/businesses to apply online or call 1-800-829-4933 to apply.
- It is free to apply for an EIN.
3
Get additional business licenses and tax documents. If you have employees or are selling a physical product that requires sales tax, you will need to register for a taxpayer identification number (TIN) through the Arizona Department of Revenue (AZDOR). AZDOR refers to this as a Transaction Privilege Tax (TPT)/License. You can apply for this online^{[5]
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- If you are unsure if you need a TPT for your business, contact AZDOR at (602) 255-3381 or (800) 352-4090.
4
Open a business bank account. It is wise to separate your personal and business finances. Open a different account that is only for your LLC. You will need a copy of the articles of organization and your Tax ID number.^{[6]
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- Access to the bank account will be determined by the bank that you choose and the structure of your company.
- Depending on the type of business, you may need additional permits such as building permits, signage permits, or health permits.^{[9]
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5
Publish your document, if required. Once your articles of organization have been approved, you may be required to publish the document. The ACC will let you know if you must publish. Do not publish the document until your articles have been approved. You will have to submit publication in the newspaper of your new business. The ACC provides a list of newspapers^{[10]
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- You will receive an Affidavit of Publication from the newspaper. You can submit the affidavit to the ACC to be included in the public record of your business or keep the affidavit for your business records.
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