Starting an LLC in Arizona

Your LLC needs a name that follows Arizona’s LLC statutes. According to AZ Revised Statute § 29-3112, an LLC name must:

• Contain the words “limited liability company,” “limited company,” or an abbreviation such as “LLC.”
• Be unique among registered business names in Arizona.
• Not contain the words “association,” “corporation,” “incorporated,” “bank,” “deposit,” “credit union,” “trust,” or “trust company.”

Already have a business name? Check to see if it’s available.

The next step is to appoint a registered agent. In Arizona, a registered agent is called a statutory agent. Your Arizona statutory agent is the person or company responsible for accepting service of process (lawsuits) and important notices from the Secretary of State on behalf of your business. All Arizona LLCs are required to appoint a statutory agent. You’ll need to include your statutory agent’s name and address on your Articles of Organization.

Learn why the pros use a registered agent service.

To formally start your LLC, you’ll need to submit the Articles of Organization to the Arizona Corporations Commission. You can submit this form by mail, fax, online, or in person.

Note: All of the information on this form will become part of the public record.

To complete this form, you must provide the following information about your LLC:

• Entity type. Indicate if you are starting a standard LLC or a Professional Limited Liability Company (PLLC). PLLCs provide state-licensed services such as law or medicine.
• Entity name. Must include “limited liability company,” “limited company,” or an abbreviation.
• Professional services. PLLCs should list the professional service they will offer.
• Statutory agent. Someone appointed to accept legal mail on your business’s behalf.
• Statutory agent physical address. Must be a street address, not a P.O. box.
• Statutory agent mailing address. A P.O. box is fine here.
• Principal address. Where you will be sent service of process and other legal notices. Hint: if you hire a registered agent service, use their physical address as your principal address to protect your privacy.
• Management structure. Whether your LLC is run by members or managers.
• Organizer. The person who fills out your Articles of Organization signs here.

Arizona is one of just a few states with a publication requirement for LLCs. Per AZ Revised Statute § 29-3201(G), most Arizona LLCs will need to publish their LLC within 60 days of formation. However, there is an exception to this rule: if your statutory agent is located in Maricopa or Pima County, the Arizona Corporations Commission will publish your LLC for you, and you don’t have to do a thing.

If your statutory agent is not located in Maricopa or Pima County, you’ll need to meet the Arizona LLC publication requirement. To do so, you’ll need to publish a legal notice:

• in one newspaper
• for three consecutive issues
• in the county where your statutory agent is located.

Our office is in Pima County, so if you hire us, you can skip this step entirely.

An LLC operating agreement is a legal document that establishes your LLC’s policies and procedures. It will cover all the important stuff—how much each member invests, how membership interest is transferred, how voting works, and what you’ll do if you need to dissolve the business. An operating agreement is crucial for opening a bank account, maintaining limited liability status, and resolving disputes with members.

Check out our attorney-drafted Arizona LLC Operating Agreement.

Your EIN (Employer Identification Number) is the number given to your business by the IRS for tax purposes. Think of it as a social security number for your business. It’s free to apply for an EIN directly from the IRS. You can either apply online or by mail. It’s faster to apply online, but you’ll need to mail the paper form if you don’t have a social security number.

Learn How to get an EIN for your LLC.

Your LLC needs a separate bank account. Why? LLCs have limited liability status because they’re considered separate legal entities from their owners. If your LLC’s money is kept in an owner’s personal bank account, a court could decide your business isn’t really a separate entity—and you could lose your limited liability protection.

Here’s what you should bring to the bank when you open your account:

• Arizona LLC Articles of Organization (a copy is fine)
• the LLC’s operating agreement
• the LLC’s EIN
• an LLC Resolution to Open a Bank Account (if your LLC has more than one member).

If your LLC has more than one member, use our free LLC Resolution to Open a Bank Account.

Time to put your money where your mouth is! You need to fund your LLC. Each member should make an initial contribution to pay for their membership interest. This is done by writing a check to the business bank account, or (less commonly) by contributing property or services to the LLC. Note that if your members invest property or services, there’s likely to be a tax event.

Arizona LLCs are not required to file an annual report. That means no annual report fees! Rejoice! However, your business will need to register with the Department of Revenue and pay the transaction privilege tax (TPT), which is Arizona’s tax for the privilege of doing business in the state. You can register on the Arizona Department of Revenue website, or by mailing the Arizona Joint Tax Application (JT-1).