If you’re launching a business in Arizona, forming an LLC is a smart way to protect personal assets and gain credibility. Follow these steps to create your Arizona LLC:
1. Choose an Arizona LLC Name
Pick a unique name that complies with Arizona’s naming rules. It should include “Limited Liability Company” or an abbreviation (LLC) and avoid disallowed words (like “bank” or “insurance” unless authorized). Search the Arizona Corporation Commission (A.C.C.) name database to ensure availability. Arizona allows you to reserve a name for 120 days for a $10 fee if needed.
2. Select a Statutory Agent (Registered Agent)
Arizona requires an LLC to have a Statutory Agent (same as a registered agent) within the state. This agent will receive legal notices for the LLC. You can appoint an Arizona resident or an authorized business entity with a physical Arizona address. If you don’t have someone, many companies offer Statutory Agent services for a fee. They must be available during business hours to accept important documents.
3. File Articles of Organization
Submit the Articles of Organization to the Arizona Corporation Commission. The filing fee is $85 if you file online (or $50 by mail, but online is recommended for speed). You’ll provide the LLC’s name, principal address, Statutory Agent information, management structure (member-managed or manager-managed), and the signature of the organizer (person filing). Arizona processing is fairly quick, especially online. Once approved, your LLC is officially formed.
4. Publish the Notice of LLC Formation (if required)
Arizona has a publication requirement only for LLCs located in counties with population less than 1,000,000 (which excludes Maricopa and Pima counties where Phoenix and Tucson are). If your LLC’s known place of business is in a smaller county, you must publish a Notice of Formation in an approved newspaper in that county for 3 runs (the newspaper will usually handle sending an affidavit to the A.C.C. afterward). Check the A.C.C. site for specific instructions and approved newspapers. If you’re in Maricopa or Pima County, this step is waived.
5. Create an Operating Agreement
Draft an operating agreement for your Arizona LLC. While not required by the state, it’s a crucial document that outlines ownership percentages, member roles, voting rights, and procedures for things like profit distribution or adding members. It keeps everyone on the same page and helps protect your LLC status. Keep it with your records; you don’t need to file it with the state.
6. Get an EIN from the IRS
Apply for an EIN (Employer Identification Number) via the IRS website (it’s free). Even if you have no employees, an EIN is useful for tax purposes and is often required to open a business bank account. For multi-member LLCs, it’s mandatory for tax filings. Single-member LLCs should get one too, to avoid using your SSN for business documents.
7. Open a Business Bank Account in Arizona
Open an LLC bank account to separate your business finances from personal. Most banks will need your Articles of Organization and EIN. Keeping finances separate is important for liability protection and makes accounting easier. Arizona has many local banks and credit unions, or you can choose a national bank—just ensure it fits your needs (low fees, convenient ATMs, etc.).
8. Comply with Arizona Tax and License Requirements
Register with the Arizona Department of Revenue if you’ll have transaction privilege tax (Arizona’s version of sales tax) or if you have employees for withholding tax, etc. You can use Arizona’s AZTaxes.gov portal for registration. Also, check if your city requires a business license or if your industry needs specific permits (like a contractor’s license, food service permits, etc.). Complying upfront avoids penalties later.
Tip: Consider using a service like Registered Agents Inc. to form your Arizona LLC. They’ll handle the Articles of Organization filing and can even act as your Statutory Agent, simplifying the process so you meet all requirements, including the publication step if it applies to you.
Final Thoughts
Forming your Arizona LLC is the first step in your business journey. Arizona’s business-friendly policies and the relatively low cost of formation make it straightforward. After formation, maintain your LLC by keeping up with any required taxes and the annual report (note: as of 2025, Arizona no longer requires annual reports for standard LLCs – one less thing to worry about!). With your LLC in place, you can operate with peace of mind and focus on growing your business.
