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 naming requirements for LLCs when deciding on the legal name of their LLC. Here are some of the key requirements for Arizona LLC names.
- Required words. The name of an Arizona LLC must end with The name of an Arizona LLC must end with one of the following:
- Limited Liability Company
- Limited Company
- L.C.
- LC
- LLC
- L.L.C.
- Unique. 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.
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 how it can be managed. 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.