Starting a Limited Liability Company (LLC) in Arizona is an important step for entrepreneurs looking to protect their personal assets and enjoy the flexibility of running their business. Whether you’re launching a new venture or formalizing an existing business, this guide will walk you through the steps to start an LLC in Arizona and ensure your company is set up for success.

Step 1: Form Your LLC with the Arizona Corporation Commission

How to Start an LLC in Arizona

The first step is to legally create your LLC. The entity that you do this through is called the Arizona Corporation Commission. Here is how:

• Pick a name for your LLC. Your LLC’s name has to be unique meaning, you cannot use one that is already taken. You should also think about the marketability of the name and the website domain that you will be using. Ther eis such a thing as using a tradename to do business as your LLC’s name but that is another topic. To keep it simple, think of what name you want to use and then make sure it meets Arizona’s naming requirements. For example, there are some words you cannot use. The Arizona Corporation Commission has an article about this here — https://azcc.gov/corporations/determining-distinguishability. You can check the availability of your desired name using the Arizona Corporation Commission’s online database when you are going through the steps to start your LLC in Arizona.
• File Articles of Organization. Fill out and submit the Articles of Organization online, fax, or mail. This document officially establishes your LLC in Arizona and includes details like your business name, statutory agent (required to receive legal documents), and address. Be sure to fill out the Member attachment as well. You will need to also fill out a coversheet if you are going to submit the Articles of Organization via fax or mail.
• Pay the Filing Fee. When getting started on filing your LLC, the Arizona Corporation Commission charges a filing fee of $50 (or $85 for expedited processing).
• Publish Your LLC (If Required). Some Arizona counties require you to publish a notice that you have started your LLC in Arizona in a local newspaper. Check the Arizona Corporation Commission’s guidelines to determine if this applies to your business.

Step 2: Get an EIN (Employer Identification Number) from the IRS

How to Start an LLC in Arizona

The purpose of an EIN is to be able to open a business bank account. Running all of your income and expenses through a business bank account not only makes things easier at tax time but is also one of the many pieces of a paper trail that help with your liability protection. When you’re starting your LLC in Arizona, getting an EIN is also essential for filing taxes, hiring employees, and completing step 3 below. You can apply for an EIN online for free through the IRS website. Even if you’re a single-member LLC, an EIN helps keep your personal and business finances separate. It is risky to employ a third-party service to obtain your EIN. You need to disclose your social security number to get an EIN and providing it to a random third party is risky. Using the IRS.gov website to obtain an EIN is free and you are getting it right from the source.

Step 3: File a Beneficial Ownership Report with FinCEN

How to Start an LLC in Arizona

As of 2024, starting most Arizona LLCs requires filing a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). This is a new requirement. Your BOI report helps the government track who owns and controls your LLC to prevent financial crimes. You will need to provide:
• Name, address, and identifying information for the LLC’s beneficial owners.
• The LLC’s EIN, formation date, and jurisdiction.
Ensure you file this report on time to avoid penalties which are significant — $500 per day! This is another step that is done on a government website – fincen.gov.

Step 4: Create an Operating Agreement

How to Start an LLC in Arizona

While not required by Arizona law, an Operating Agreement is a crucial document for your LLC. It outlines:
• Ownership percentages.
• Profit and loss distribution.
• Decision-making processes.
• Roles and responsibilities of members.
If you have more than one business partner, creating an Operating Agreement is especially important. And whether you are a multi member or single-member LLC solopreneur, an Operating Agreement adds legitimacy to your business and helps protect your limited liability status.

Step 5: Build a Paper Trail with Meeting Minutes or Consent Resolutions.

How to Start an LLC in Arizona

Holding regular meetings and documenting them with meeting minutes can demonstrate that your LLC operates as a separate entity from its owners. This paper trail strengthens your liability protection and can be essential in legal or tax matters. Documenting decisions with consent resolutions or meeting minutes is an important step.

Conclusion

How to Start an LLC in Arizona

Starting an LLC in Arizona involves several steps, from filing with the Arizona Corporation Commission to creating an Operating Agreement and filing a Beneficial Ownership Report. Contact us today for professional guidance on setting up your business the right way. Whether you need help filing paperwork or drafting contracts, we’re here to help!