Starting a business can be one of the most exciting and rewarding journeys, and forming a Limited Liability Company (LLC) in Arizona is a popular choice for entrepreneurs looking to protect their personal assets while enjoying the flexibility of managing their business. An LLC offers numerous benefits, including limited liability, pass-through taxation, and minimal paperwork compared to other business structures like corporations.
Arizona, known for its business-friendly environment, makes it relatively simple to form an LLC. Whether you’re a local resident or looking to expand your business into the state, the process is clear and straightforward. In 2025, Arizona continues to offer streamlined online services that make it easy for business owners to complete most of the steps remotely, saving time and effort.
However, while the process is relatively simple, it’s essential to ensure you’re following all the necessary steps to meet legal requirements and maintain compliance. From choosing a name for your LLC to filing the necessary paperwork and ensuring your business is properly registered with the state, there are several important decisions to make along the way.
In this comprehensive guide, we’ll take you through each step involved in starting an LLC in Arizona, providing you with all the information you need to get your business up and running. We’ll cover everything from selecting a name and filing the Articles of Organization to understanding the publication requirements and ensuring your LLC remains compliant with state laws. By the end of this guide, you’ll have a clear understanding of the steps to take and be well-equipped to start your Arizona-based LLC with confidence.
Here Are the Steps to Forming an LLC in Arizona
Arizona offers a simple and efficient process for starting an LLC, but it’s important to understand every step along the way. Follow these detailed instructions to ensure that your LLC formation is smooth and successful.
1. Search Your LLC Name
One of the first steps in forming your LLC in Arizona is choosing a unique name that meets the state’s requirements. The name of your LLC will serve as your business identity, so it’s essential to make it count. Here’s how you can ensure your chosen name is suitable:
Name Requirements
Your LLC name must meet the following criteria:
- Unique: The name must be distinguishable from other businesses registered in Arizona. Use the Arizona Corporation Commission’s (ACC) online tools to verify that your chosen name isn’t already in use.
- LLC Identifiers: The name must contain the words “Limited Liability Company” or abbreviations such as “LLC” or “L.L.C.”
- No Restricted Words: Arizona prohibits names that imply associations with government entities unless you have the required permission. Words like “FBI,” “Treasury,” or “Bank” are usually restricted unless specific permissions are obtained.
Name Reservation (Optional)
If you’re not ready to file your LLC but want to reserve the name, you can file a name reservation application with the ACC. This reservation holds the name for 120 days and costs $45. While this step is optional, it’s useful if you’re not immediately filing your Articles of Organization.
Search Availability
To check if your desired LLC name is available in Arizona, you can use the online name search tool provided by the Arizona Corporation Commission. This tool will show whether the name you want is already taken and if you need to get more creative.
2. Choose an Arizona Registered Agent
In Arizona, every LLC must designate a Registered Agent (also called a Statutory Agent). This is a person or business entity who will be responsible for receiving legal documents, tax notices, and official government correspondence on behalf of your LLC.
Who Can Be an LLC Statutory Agent?
A Registered Agent must meet the following criteria:
- Physical Address: The agent must have a physical address in Arizona. P.O. Boxes are not acceptable.
- Availability: The Registered Agent must be available during normal business hours to receive documents.
Types of Agents
- Individual: You can choose yourself, a member of your LLC, or another individual who resides in Arizona to be the Registered Agent.
- Professional Service: Many business owners opt to use professional Registered Agent services. These services help ensure your LLC remains in good standing by handling the receipt of legal documents.
While you can serve as your own Registered Agent, many business owners find it convenient to hire a professional Registered Agent to handle these responsibilities and maintain privacy.
One of the most reputable companies that provide Registered Agent services is Northwest Registered Agent. They offer top-notch customer service, privacy protection, and a straightforward process for managing your LLC’s legal documents.
3. File Arizona LLC Articles of Organization
Filing your LLC’s Articles of Organization with the Arizona Corporation Commission is one of the most important steps in forming your LLC. The Articles of Organization is the document that officially registers your LLC in Arizona and makes it a recognized legal entity.
Key Details Required for Articles of Organization
When you file your Articles of Organization, you will need to provide the following details:
- LLC Name: The name of your LLC as chosen in Step 1.
- Registered Agent: The name and address of your Registered Agent.
- Principal Address: The physical address of your business.
- Management Structure: Specify whether your LLC will be member-managed or manager-managed. Member-managed means the LLC members (owners) will handle day-to-day operations, while manager-managed means one or more designated managers will be in charge.
- Organizer’s Information: The person filing the Articles must provide their name and address.
Filing Process
You can file your Articles of Organization online through the ACC’s eCorp system or by mail. The filing fee is $50 for online filings, and it may take up to 14-16 business days to process your application. If you file by mail, the processing time may take longer.
4. Complete the LLC Publication Requirement
After filing your Articles of Organization, you must complete a publication requirement if your LLC is located in one of Arizona’s 13 counties that require it. Specifically, Arizona mandates that newly formed LLCs must publish a Notice of LLC Formation in a local newspaper for three consecutive publications.
Why Is This Required?
The purpose of this requirement is to notify the public that your LLC is officially formed. However, not all counties in Arizona require this step. Maricopa and Pima counties, for example, are exempt from this publication requirement.
Steps to Comply
- Select a Newspaper: You must choose a newspaper in the county where your Registered Agent is located. If your agent is in a county that requires publication, you’ll need to run the notice there.
- Submit the Notice: Provide the required information about your LLC to the newspaper. This typically includes the name of your LLC, the date of formation, and the name of your Registered Agent.
- Obtain an Affidavit of Publication: After the notice has been published three times, the newspaper will provide you with an affidavit. This document confirms that the publication requirement has been fulfilled.
- File with the ACC: Once you’ve received the affidavit, submit it to the Arizona Corporation Commission to complete the requirement.
Cost of Publication
The cost for newspaper publication varies by newspaper, but it generally ranges from $30 to $100 depending on the newspaper and the length of the notice.
5. Create an Arizona LLC Operating Agreement
While Arizona doesn’t require LLCs to have an Operating Agreement, it’s highly recommended that you create one. An Operating Agreement is an internal document that outlines how your LLC will be governed and operated. This document is essential for preventing misunderstandings and disputes among LLC members.
What Should an Operating Agreement Include?
- Ownership Interests: This section details each member’s percentage of ownership in the LLC.
- Management Structure: Specify whether the LLC will be managed by members or designated managers.
- Member Roles: Clarify the responsibilities and duties of each member and manager.
- Voting Rights: Outline the voting process for key decisions in the LLC.
- Distribution of Profits and Losses: Explain how profits and losses will be divided among members.
- Dissolution Process: Define the procedure for dissolving the LLC if necessary.
Having an Operating Agreement in place is especially important if your LLC has multiple members. It helps establish clear expectations and prevents future conflicts.
6. Get an EIN for Your LLC
Once your LLC is officially formed, you need to obtain an Employer Identification Number (EIN) from the IRS. An EIN, also known as a Federal Tax Identification Number, is required for tax purposes and is essential for opening a business bank account.
How to Apply for an EIN
- Online Application: You can apply for an EIN directly from the IRS website. The process is quick and free.
- Processing Time: After completing the online application, you will receive your EIN immediately.
While single-member LLCs without employees may not be required to get an EIN, it’s still highly advisable to obtain one. It’s necessary for opening a business bank account, applying for loans, and filing taxes.
What Do I Do After My LLC Is Approved?
Once your LLC is approved and formed, it’s time to move on to a few essential tasks that will keep your business compliant and ready to operate.
Open a Business Bank Account
To keep your personal and business finances separate, you’ll need to open a business bank account. When opening the account, you will need to provide your EIN, Articles of Organization, and your Operating Agreement (if you have one). This step is essential for protecting your personal assets and ensuring your LLC’s legal protections remain intact.
Apply for Necessary Business Licenses and Permits
Depending on your industry and the location of your business, you may need specific licenses and permits. Arizona doesn’t require a general business license at the state level, but many local municipalities require business licenses. Check with your city or county government to determine which permits or licenses you need to legally operate your business.
Understand Arizona’s Tax Requirements
Arizona imposes a Transaction Privilege Tax (TPT) on businesses, which is a sales tax on the privilege of doing business in the state. Additionally, if your LLC has employees, you will need to register for employment-related taxes, including withholding tax and unemployment insurance tax. Make sure to register with the Arizona Department of Revenue and comply with all state and local tax obligations.
Maintain Compliance
Arizona LLCs do not need to file annual reports, which simplifies the ongoing compliance process. However, you must maintain accurate records, hold regular meetings (if applicable), and ensure compliance with any local regulations. It’s also essential to keep your LLC’s registered agent information up to date.
Arizona Corporation Commission Contact Info
- Website: https://azcc.gov
- Phone: (602) 542-3026
- Address: 1300 W. Washington St., Phoenix, AZ 85007
For questions about the formation process or specific requirements for your LLC, the Arizona Corporation Commission is your primary resource.
FAQs
Can I start an LLC online in Arizona?
Yes, Arizona allows you to file your Articles of Organization online via the eCorp system. The process is simple and can be done in just a few steps.
Do I need an Operating Agreement in Arizona?
While not required by law, an Operating Agreement is highly recommended to define your LLC’s structure and operations.
How much does it cost to start an LLC in Arizona?
The filing fee for the Articles of Organization is $50, and the publication fee varies depending on the newspaper. Additional costs may include Registered Agent services and other optional services.
How long does it take to form an LLC in Arizona?
Processing your Articles of Organization typically takes 14-16 business days. Expedited processing is available for an additional fee.
Do I need a business license in Arizona?
While a general business license is not required at the state level, many localities in Arizona do require business licenses. Check with your local government to determine the specific requirements.
