Start Your Arizona LLC

Quick facts about forming an Arizona LLC

Filing Fee	$50 (online or mail)
Processing Time	2–5 business days online, up to 3 weeks by mail
Annual Report Fee	None
Registered Agent Required	Yes, must have a physical address in Arizona
Publication Requirement	Yes, 3 publications in approved Arizona newspapers
State Franchise Tax	None for LLCs
Business License	Not required statewide, but local permits may apply
Managing Authority	Arizona Corporation Commission

One of the most important decisions you will make when starting a business is what type of legal entity to create for your company. A Limited Liability Company (or LLC) is easier to create and operate than a corporation while still providing many of the same advantages that a corporation offers.

As the name implies, a common reason to form an LLC is that it provides “limited liability” to the members of the LLC. In other words, a member’s personal liability for debts or losses of the business is limited when the business is an LLC.

Specific benefits of forming your LLC in Arizona include:

• Arizona does not require LLCs to file an annual report.
• Arizona allows single and multiple-member LLCs.
• You do not have to be an Arizona resident to form an Arizona LLC.
• Arizona allows both professional and foreign LLCs.
• An Arizona LLC can be member or manager-managed.
• Arizona law recognizes and defers to the terms of an LLC operating agreement regarding the operation of the business and sharing of profits.

How to form an Arizona LLC in 6 steps

Starting your LLC in Arizona is a straightforward process, but there are a few state-specific requirements you’ll need to follow, like publishing your LLC formation in an approved newspaper (if applicable) and filing your articles of organization with the Arizona Corporation Commission.

Here’s what you’ll need to do:

1. Choose a name for your Arizona LLC
2. Appoint a registered agent
3. File your Articles of Organization
4. Publish your LLC formation
5. Create an operating agreement
6. Get an EIN (Employer Identification Number)

Each step is explained in more detail below so you can confidently start your Arizona business the right way.

Step 1: Name your Arizona LLC

Once you have decided to form an LLC, you need to decide on a name for your company. Arizona requires the name of an LLC to contain the words “Limited Liability Company” or the abbreviations “LLC,” “L.L.C,” “L.C.,” or “LC.” If the entity is a professional LLC, the name must contain the words “professional limited liability company” or the abbreviations “P.L.L.C.,” “P.L.C.,” “PLLC,” or “PLC.” Arizona law also requires a name to be distinguishable on the records of the Commission or the Secretary of State from any of the following:

• The name of an existing person whose formation required the filing of a record by the Commission or the Secretary of State and that is not at the time administratively dissolved
• A name under which a person is registered to do business in Arizona by the filing of a record by the Commission or the Secretary of State
• A name currently reserved by another entity
• A name registered under Section 44-1460 (Registration of trade name, title, or designation)

You will also need to make sure that your chosen name is available. To determine if a name is available, you should visit the Arizona Corporation Commission website (A.C.C.) and conduct an Arizona business entity search. To do that, simply type in the name you wish to use in the “entity name” box and click on “name availability search” at the bottom of the page. When you have settled on an available name, you can move on to reserving the name.

Step 2: Choose a statutory agent

An Arizona LLC must designate a “statutory agent,” commonly known as a “registered agent” in other states. The statutory agent Arizona is an individual or business entity that has agreed to accept service of legal documents and notices on behalf of the LLC. The statutory agent can be an individual who is a permanent, full-time Arizona resident, a domestic corporation or an LLC, or a foreign corporation or an LLC authorized to do business in Arizona. The statutory agent must have a physical street address in Arizona and must formally accept the appointment as stator agent in writing by executing a Statutory Agent Acceptance form.

If you form your LLC with us, we also offer registered agent services and you can choose to appoint us as your statutory agent in Arizona.

Step 3: File the Articles of Organization

The Articles of Organization officially create your Arizona LLC with the state. This document includes basic details such as your LLC’s name, business address, registered agent, and management structure. Once filed with the Arizona Corporation Commission and approved, your LLC is legally recognized and authorized to do business in the state.

State fees

Creating an LLC in Arizona will require payment of several mandatory fees. The required fees will vary depending on how many documents and/or services are involved. All filing fees are nonrefundable, and cash is only accepted at the Phoenix office for in-person submissions.

The cost of LLC in Arizona may include some of the following fees:

• Filing Articles of Organization $50 ($85 for expedited processing)
• Application for registration of foreign limited liability company $150 ($185 for expedited processing)
• Name reservation $10 document fee plus a $35 expedited processing fee if filed online, $100 for next-day service, $200 for same-day service, or $400 for two-hour service
• Transfer of name reservation $10
• Registration of Trade Name $10
• Registration of trademark or service mark $15
• Statutory agent registration is no charge unless you need expedited processing, which is $35
• Publication cost depends on the newspaper in which the notice is published

Requirements

The formation of an Arizona LLC requires one or more members. A member is not required to be an Arizona resident nor is there an age requirement. A member may be an individual, business corporation, nonprofit corporation, partnership, limited partnership, limited liability company, general cooperative association, limited cooperative association, unincorporated nonprofit association, statutory trust, business trust, common-law business trust, estate, trust, association, joint venture, public corporation or government or governmental subdivision, agency, or instrumentality or any other legal or commercial entity.

An Arizona professional limited liability company (PLLC), defined in A.R.S. Section 29-4101.4 is “a limited liability company organized under this chapter for purposes that include rendering one or more categories of professional services.” “Professional service” is defined as “a service that may be lawfully rendered only by a person licensed or otherwise authorized by a licensing authority in this state to render the service.”

Arizona also recognizes foreign limited liability companies, defined as “an unincorporated entity that is formed under the law of a jurisdiction other than this state and that would be a limited liability company if the unincorporated entity were formed under the law of this state and includes a foreign series for the purposes of this article. With limited exceptions, the law of the jurisdiction of formation of a foreign limited liability company governs both internal affairs of the company and the liability of a member as a member and a manager as a manager for a debt, obligation, or other liability of the company.

Although the Articles of Organization you need to file may include additional information, at a bare minimum they must include:

• Designation as a regular or professional LLC
• The name and address of the LLC
• A description of services provided if the LLC is a professional LLC
• Name and address of the statutory agent
• Designation as a member-managed or manager-managed LLC
• Signature of LLC’s organizer.

How to file

The Articles of Organization for your LLC may be filed online through the Arizona Corporation Commission website as well as in-person or by mail at the Arizona Corporation Commission, 1300 West Washington Street, Phoenix, Arizona 85007.

Expect documents filed by mail or in-person to take approximately 14 to 16 business days from the time they are received to process. If you pay the expedited fee, that time frame shortens to 7 to 9 days. Documents filed online take, on average, 14 business days to process. If you pay the expedited fee your documents may be processed in as little as one day.

Step 3: Newspaper publication

Arizona has a somewhat unique publication requirement for newly formed LLCs that requires a notice of LLC formation to be published in one of Arizona’s approved newspapers in three consecutive publications, starting within 60 days of receiving notice from the Arizona Corporation Commission. The notice must include the following information:

• Name and address of the LLC
• Name and address of the statutory agent
• Whether the LLC is member-managed or manager-managed
• Names and addresses of managers or members, depending on the management structure

The exception to the publication rule applies if you are in Maricopa or Pima County, in which case the ACC posts notice of your LLC’s formation on the Arizona Corporation Commission’s Public Notice Database.

Step 5: Create an operating agreement

An operating agreement serves as the roadmap for how your LLC will run, covering finances, management, and member responsibilities. Once signed, it becomes a legally binding contract between members under A.R.S. Section 29-3105, which governs:

• Relations among members and between members and the LLC
• The rights and duties of the manager
• How the company conducts its activities and affairs
• How the agreement can be amended

Arizona law lets LLC members decide how to divide ownership and profits – equally or in any way they agree on. The Arizona LLC operating agreement formalizes those arrangements and helps prevent future disputes.

It should also clarify financial responsibility and liability protection for members. Without it, individuals may be more vulnerable to being held personally liable for company debts.

Finally, the agreement outlines your management structure, whether your LLC is member-managed (all members share authority) or manager-managed (a designated manager runs the business).

Is an operating agreement a must?

An operating agreement is not legally required when forming an LLC in Arizona; however, creating one helps define how the LLC will operate, further liability protection for the members, and decreases the likelihood of disputes. If you choose to create one, it will be governed by A.R.S. Section 29-3105.

Step 6: Apply for an EIN

The Internal Revenue Service (IRS) identifies individuals using a Social Security Number. An Employer Identification Number (EIN), also referred to as a Federal Tax Identification Number, is the business equivalent of a Social Security Number. Issued by the IRS, an EIN is used to distinguish business entities for tax and other related reasons. Along with tax filing purposes, your LLC will likely need an EIN to apply for federal/state/local permits and licenses as well as open bank accounts and apply for financing.

Applying for an EIN can be accomplished online through the IRS website for an LLC whose principal place of business is located in the United States or U.S. Territories. You will need a valid Taxpayer Identification Number (SSN, ITIN, EIN) and may only file one application per day.

We can also submit an EIN application for you if we assist you in creating your LLC.

What to do after you’ve formed an LLC

Open a business bank account

One of the reasons you likely formed an LLC was to create a legal entity separate and apart from yourself. As a separate legal entity, your LLC needs its own bank account. Keeping financial transactions related to the LLC distinct from those of the members is crucial to maintaining the limited liability protection afforded by an LLC. Moreover, having a business bank account adds a level of professionalism to your LLC that can be important when transacting business.

Understand your ongoing annual LLC fees in Arizona

Unlike many other states, Arizona does not require LLCs to file an annual report with the state. While that means there are no annual fees directly related to the existence of your LLC, you may be required to file reports with other state and/or federal agencies.

Obtain relevant business licenses and permits

A general business license is not required by the State of Arizona. Certain types of businesses, however, are required to be licensed by the state. Contractors, for example, must register with the Arizona Registrar of Contractors. In addition, individual cities or towns may require you to be licensed if you plan to do business within the city/town limits. Check the Arizona Commerce Authority website to see if your LLC needs to obtain a license and/or register with a particular city or town. Learn more about business licenses and permits in Arizona from our guide.

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