April 10, 2020
How to Start an LLC in Arizona

How to Start an LLC in Arizona

– [Narrator] How to
form an LLC in Arizona. If you are interested in forming an LLC in the Grand Canyon state,
you have good reason. Arizona ranks highly in entrepreneurship and is fifth in the nation
for economic growth prospects. Every state has slightly
different requirements for forming an LLC. Follow along closely to
learn the required steps for creating your own
limited liability company in the state of Arizona. (pleasant music) There are two ways to
form an LLC in Arizona. You can form one yourself or you can hire a
service to do it for you. Let’s start by looking at
the six basic requirements to form an LLC in Arizona on your own. You can also find these
steps in more detail on our website linked in
the description below. One, name your LLC. Every state has its own rules about what kind of names
are allowed for LLCs. In general you will need to
observe these naming guidelines. Your name must include the
phrase limited liability company or one of its abbreviation, LLC, or L.L.C. with a period following each letter. Restricted words such as bank, attorney, law office, etc., may
require additional paperwork and may also need a licensed professional to be part of the LLC. Your name cannot include words that could confuse your LLC
with a government agency such as FBI, Treasury,
State Department, etc. You cannot use a name that
has already been registered. To see if your name is
available in your state, you’ll need to do a name search. This free service is available on your state Secretary of State website. Check out our free guide for finding the direct link to your state. We also recommend that you check to see if your business name is available as a web domain. Even if you don’t plan to
make a business website today, you may want to buy the URL in order to prevent
others from acquiring it. Two, choose a statutory agent. Arizona requires that you nominate a statutory agent, more commonly known as a registered agent, for your LLC who is your business’s point
of contact with the state. The registered agent can be an individual within the company, including yourself, or you can hire a professional service authorized to do business in Arizona. They will send and receive
legal papers on your behalf. These documents include
official correspondence like legal summons and document filings which your registered agent
will receive and forward to you. Your registered agent will help remind you to file the necessary reports. Failure to properly maintain your LLC can result in fines and dissolution so this assistance is valuable. Three, file the Articles of Organization. To register your LLC, you will need to file the
Articles of Organization with the state of Arizona. This can be done online,
by mail, or in person. You will need to state whether your LLC will be member-managed or manager-managed. Member-managed means all members of the LLC manage the company. This is good for small organizations where everyone is involved
in the day-to-day operations. The second option is manager-managed where individuals are
appointed to manage the LLC. This is appropriate for
larger organizations where not everyone is involved in the day-to-day affairs of the business. Four, complete publication requirements. Arizona requires newly formed LLCs to publish a notice of LLC formation for three consecutive weeks
in an approved newspaper in the county of the
LLC’s principle office. This must be done within
60 days of formation. Take note, businesses
whose principle address is in either Maricopa or Pima counties do not have to publish a
notice of LLC formation Five, create an operating agreement. Although not every state requires it, you should always create
an operating agreement to establish ownership terms
and member roles for your LLC. This foundational document
is the core of your LLC and will help you
maintain your organization as well as further establish your LLC as a separate legal entity. There are six main sections
of an operating agreement. Organization outlines when and where the company was created,
who the members are, and how the ownership is structured. Management and voting addresses how the company is managed as well as how the members vote. Capital contributions covers which member’s financially support the LLC and how more funds will
be raised in the future. Distributions outlines
how the company’s profits and losses are shared among members. Membership changes describes the process for adding or removing members as well as if and when members can transfer their ownership shares. And dissolution, which
explains the circumstances in which the LLC may be dissolved. An operating agreement
is an internal document. It does not need to be
filed with the state. However, it should be updated every time there is a change in membership or management at the company. You can download a free
sample operating agreement or create a custom one using our free operating agreement
tool at howtostartanllc.com. Six, obtain an EIN. Lastly you’ll need to get an
employer identification number or EIN from the IRS. Also known as a federal
tax identification number, your EIN is like a social
security number for your LLC and is how the IRS tracks your
business for tax purposes. An EIN is also necessary to
open a business banking account and legally hire employees. EINs are free of charge and can be obtained from the IRS online or through the mail. And with that, you have formed
an Arizona LLC on your own. The second way to create an Arizona LLC is to hire a professional service to create your LLC for you. Hiring a professional
service to file your forms and act as your registered
agent for the LLC will cost you an additional $50 to $150. However, there are several
benefits to working with a pro. A hired registered
agent helps with getting your reports filed on time, helps you stay organized by keeping your business mail separate, and is available at all
regular business hours to accept official mail and legal papers on your LLC’s behalf. A final and important additional benefit of using a service is privacy. A professional service will provide a level of privacy by
withholding your personal name and home address from the
LLC’s contact information. There are several
reasons why you might not want your personal
information easily accessible and associated with your business. Hiring a professional
LLC formation service is an easy way to accomplish this. Now that you have seen
the different requirements and ways you can form an LLC in Arizona, visit our site and take some time to research your options and
establish a solid foundation for your business activities. Click on the links in
the description below to research the top five
professional formation services or get more information on how to form an Arizona LLC on your own. Now you know all the steps to form an LLC in your state. For a more detailed guide,
go to howtostartanllc.com. You can also create an operating agreement and use our business
plan tool free of charge. Give the video a like
if you found it useful and subscribe if you’d like to see more. If you have questions or encounter any roadblocks, leave a comment below. Good luck in starting your small business. (pleasant music)

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