Arizona LLC Requirements

How to start an LLC in Arizona

An LLC business structure offers various benefits, but it’s important to keep your LLC in compliance with state requirements in order to maintain those benefits. Here are some of the critical steps to take when forming an LLC in Arizona.

Step 1: Decide on a name for your Arizona LLC

Business owners must take into account a state’s compliance requirements when deciding on the name for their LLC. Here are some of the key requirements for Arizona LLC names.

• Required words. The name of an Arizona LLC must end with "Limited Liability Company", "Limited Company", "L.C.", "LC", "LLC", or "L.L.C."
• Generally, the name of an Arizona LLC must not be too similar to the name of another business entity on file with the Arizona Secretary of State.
• Prohibited or restricted words. Use of words such as (but not limited to) "bank", "deposit", "credit union", "trust", or "trust company" require approval by the appropriate state department or agency. The name also cannot contain the words “association”, “corporation”, “incorporated”, or an abbreviation of those words.

Read Naming your startup business for more tips.

• Trade name registration. If an Arizona LLC plans to transact business under an assumed name or a “doing business as” name, it must file a Trade Name Application form with the Arizona Secretary of State’s office.

Step 2: Determine management structure (member vs. manager)

One of the reasons you may have selected an LLC as your business type is for flexibility in management structure. LLCs offers two management structures: member-managed, or manager-managed. (“Member” is the term used for the owner of an LLC.) The difference between the two options comes down to the relationship between management and ownership.

• If an LLC is member-managed, then all members (owners) are active in the decision-making processes. 
• If an LLC is manager-managed, then one or more managers are designated to make the day-to-day decisions on its behalf.  A manager may be a member or a non-member.

For more information, read our article LLC members vs. LLC managers.

Step 3: Select your Arizona statutory agent

A statutory agent, also known as a registered agent, is a person or service provider you appoint to receive and forward service of process and other important documents. Arizona requires that you have a statutory agent for service of process at the time of an LLC’s formation and maintain an agent throughout the LLC’s existence.

If the statutory agent is an individual, then that person must reside in Arizona and have consented to serve as the registered agent for the LLC. If using a professional registered agent service, that organization must be registered or authorized to do business in the state.

Note: When creating an LLC in Arizona, you will need to submit a completed and signed Statutory Agent Acceptance form along with the Articles of Organization.

Step 4: Prepare and file Articles of Organization

When forming an LLC in Arizona, you must file Articles of Organization and a Statutory Agent Acceptance form, with the Arizona Corporation Commission.

You should also create an operating agreement for your LLC. Arizona does not require you to file an operating agreement with the state. However, it is important for every LLC to have an operating agreement, it establishes the rules and structure of the business. See LLC operating agreements for more information.

Step 5: Complete Arizona’s publication requirement

Arizona requires LLCs to publish notice of the LLC formation within 60 days in a newspaper for three consecutive publications. Once the Arizona Corporation Commission approves the filing for the LLC, the commission will provide an approval letter along with information on how to publish.

After meeting the publication requirement, the LLC will receive an Affidavit of Publication. While an LLC is not required to file the affidavit with the Arizona Corporation Commission, many LLCs choose to do so.

Step 6: Obtain a federal employer identification number

A federal employer identification number (commonly referred to as an EIN or federal tax ID) is a business identification number issued by the IRS. An EIN is used when filing taxes, and is often used for other important business activities, such as opening a business bank account, obtaining a loan, or paying invoices. For more information, see Do I need an EIN for my LLC?

Step 7: Meet your license, permit, and registration requirements in Arizona

Your Arizona LLC may be required to obtain licenses and permits before it can legally operate in Arizona. There are many factors that go into determining which licenses, permits, and registrations are required for your business. Sample requirements include the following:

• State business tax registration. An Arizona LLC will likely need to obtain a TPT (transaction privilege tax) license from the Arizona Department of Revenue.
• Employee registrations. Employers are required to report the hiring of new or re-hired employees with the Arizona New Hire Reporting Center and obtain unemployment and Workers’ Compensation insurance.
• Business licenses and permits. Your Arizona LLC may need to obtain various licenses and permits at the federal, state, and local levels before it can legally operate. For example, your business may need to complete a local privilege tax registration and obtain any necessary business or occupation-related licenses and permits.

Arizona (AZ) LLC filing basics and FAQs

What is the cost to form an Arizona LLC?

At BizFilings, we clearly outline our fees and the Arizona state fees. When you view our pricing to form an LLC you plainly see:

• BizFilings’ package prices. BizFilings offers three incorporation service packages from which you can choose.
• State fee for standard turn-around. Our pricing clearly shows the state fee to incorporate in Arizona with standard turn-around.
• Expedited turn-around. You will see the BizFilings and state fee, if any, for expedited turn-around.
• Certified copy. Our pricing also clearly displays the BizFilings and state fee, if any, for issuing a Certified Copy of the Articles of Organization.