Form A Limited Liability Company in Arizona

Name Your LLC

The first thing you need to do is name your LLC.   You must make sure that the name of your LLC is original, and you can do so by checking Arizona’s Corporation Commission website to determine if the name is available.  Names must contain “Limited Liability Company” or “Limited Company” or an abbreviation thereof, such as L.L.C. or LLC.  The company name must also not confuse it with known government entities such as the FBI or CIA.  For more detailed naming instructions for Arizona, please read the naming instructions on the Arizona Corporation Commission’s website.

 

Articles of Organization and Statutory Agent

Next you are required to fill out the Articles of Organization form.  On that form you must assign a statutory agent, which must be a person or business designated by your new company.  It cannot however, be the new company, but may be a person within the company.  The purpose of a statutory agent is to have one person in charge of officially receiving papers or important documents on behalf of the company, such as service of process for a lawsuit, during normal business hours.  The statutory agent must have an Arizona State address or be authorized to conduct business in Arizona.   This agent will be designated in the Articles of Organization.  There are companies who provide the service of being a statutory agent for other companies.

A Cover Sheet and a Statutory Agent Acceptance form must accompany the Articles of Organization form.  These filled out forms should be mailed to address listed on the Articles of Organization form (or faxed to the number designated thereon) along with the processing fee designated therein.

 

Operating Agreement

It is recommended (but not required in Arizona) that you also file an Operating Agreement with the State, which will be the governing agreement between the members or co-owners of the LLC. (See this article that talks briefly about how the Operating Agreement protects members of the LLC.)  There are many free Operating Agreements that can be obtained online, but it is recommended that you contact your local counsel to draft a custom operating agreement that is tailored to your situation and business needs.

 

Post Filing Requirements

In Arizona LLCs must fulfill the publication requirement.  Within 60 days of filing, Arizona requires each LLC to publish a notification of incorporation (i.e., in a newspaper) in three consecutive publications that are in the area of business or known place of business of the LLC.

To operate a business successfully in the United States LLCs must have an EIN, which is a Federal Tax identification Number.  An EIN is obtained free of charge from the IRS after a company is formed. This number tracks the business entity and allows the IRS to properly assess and collect taxes, similar to the way a social security number does so for citizens.   Business owners can apply online for an EIN, or print the necessary form and mail it in.  Companies should figure out their State tax obligations at SBA.gov.

Depending on the type of business that your LLC will operate, certain business licenses or local permits are required by each state for its operation.  In addition, there are many employer requirements for insurance, employment eligibility verification, income tax withholding, and other reporting requirements depending on your state.  Contact your local counsel or employment specialist to determine which of these requirements you must fulfill.

 

 

Photo by: Grand Canyon NPS