How to Start an LLC in Arizona: A Step-by-Step Guide

What are the Steps to Start an LLC in Arizona?

Starting a Limited Liability Company (LLC) in Arizona can be a straightforward process if you follow the necessary steps. An LLC provides personal liability protection for its owners, known as members, and can offer tax benefits. Here’s a comprehensive guide on how to start an LLC in Arizona:

Step 1: Choose a Business Name

The first step is to choose a unique and memorable name for your LLC. The name should not be already in use by another business entity in Arizona. You can check the availability of the name using the Arizona Corporation Commission’s (ACC) business name search tool. Make sure to include the words “Limited Liability Company” or “LLC” at the end of your business name.

Step 2: Conduct a Name Reservation

If you find a name you like, you can reserve it with the ACC for 120 days. This ensures that no one else can use the same name during this period. You can reserve a name online through the ACC’s website or by mail.

Step 3: File Articles of Organization

The next step is to file Articles of Organization with the ACC. You can file online or by mail. The Articles of Organization must include basic information about your LLC such as its name, address, purpose, and management structure.

Step 4: Create an Operating Agreement

An Operating Agreement is an internal document that outlines how your LLC will be managed and operated. It should include details such as ownership percentages, roles and responsibilities of members, decision-making processes, and dissolution procedures. While not required by law in Arizona, having an Operating Agreement helps prevent disputes among members.

Step 5: Obtain an EIN

An Employer Identification Number (EIN) is required for tax purposes. You can apply for an EIN online through the IRS website at no cost. This number will be used for opening bank accounts, hiring employees, and filing taxes.

Step 6: Open a Business Bank Account

It’s essential to keep personal finances separate from business finances by opening a dedicated business bank account. Most banks require an EIN to open a business account.

Step 7: Obtain Licenses and Permits

Depending on the type of business you’re starting, you may need various licenses or permits from local authorities or state agencies. For example, if you’re planning to operate a food truck or restaurant in Phoenix or Tucson, you’ll need food service permits from those cities’ health departments.

Step 8: File Annual Reports

Every year, LLCs in Arizona must file an annual report with the ACC within two months after their anniversary date listed in their Articles of Organization. This report requires updating basic information about your LLC such as its address and management structure.

Conclusion:

Starting an LLC in Arizona involves several steps including choosing a unique name, reserving it if necessary, filing Articles of Organization with the ACC, creating an Operating Agreement internally among members if desired but not legally required by Arizona state law; obtaining an Employer Identification Number from IRS; opening dedicated banking accounts; obtaining necessary licenses/permits based upon specific industry requirements; finally filing annual reports timely manner each year thereafter ensuring compliance regulations set forth by state authorities overseeing corporate formations within territorial boundaries governed under jurisdictional purview thereof.