The new year brings fresh opportunities, and for many, that means launching a business. Arizona is a fantastic place to start, with its pro-business climate and growing economy. Whether you’re turning your side hustle into a full-time venture or expanding your entrepreneurial dreams, setting up your business the right way is crucial.
Here’s a step-by-step guide to help you navigate the process of starting a new business in Arizona in 2025.
- Choose the Right Business Entity
The first major decision is selecting the type of entity that fits your business needs. In Arizona, the two most common options we help our clients with are:
- Limited Liability Company (LLC): An LLC provides liability protection and tax flexibility, making it ideal for small businesses and startups.
- Corporation: A corporation offers strong liability protection and is often better suited for larger businesses or those planning to raise significant capital.
Each entity type has pros and cons. Consulting with our attorneys can help you weigh your options and choose the right structure.
2. Create Governing Documents
Every business entity needs guiding documents to define how it operates. For the two entity types we mentioned above, those include:
- Operating Agreement (for LLCs): This document outlines ownership percentages, member responsibilities, and procedures for decision-making.
- Bylaws (for Corporations): Bylaws establish rules for the board of directors, shareholder meetings, and corporate governance.
Even if Arizona law doesn’t require these documents, having them in place ensures smooth operations and helps prevent disputes. It also prevents the default state laws from dictating how your business runs.
3. Handle Formation Tasks
Once you’ve chosen your entity and thought about governing documents, we can complete these essential steps:
- File Formation Documents: Submit Articles of Organization (for LLCs) or Articles of Incorporation (for Corporations) with the Arizona Corporation Commission.
- Obtain an EIN: Your Employer Identification Number (EIN) is required to open a business bank account, hire employees, and file taxes.
- Keep Records Up-to-Date: Corporations will maintain meeting minutes, while LLCs should keep organized records of major decisions.
4. Understand the BOIR Pause
As of the time of writing, a federal court has paused the Beneficial Ownership Information Report (BOIR) requirement. Currently, new businesses are not required to file this report, but this could change. Stay informed, as compliance may be required in the future.
5. Moving an Existing Business to Arizona
If you’ve recently relocated to Arizona and want to bring your existing business with you, we can help. From domestication to mergers, we’ll ensure your transition is seamless and legally compliant.
Get Started Today
Starting a business is an exciting journey, and getting the details right from the beginning can save you time and stress later. At Windrose Law Center, we specialize in helping Arizona entrepreneurs choose the right entity, draft governing documents, and handle formation tasks with ease.
Make 2025 the year you turn your business dreams into reality. Contact us today to schedule a consultation and get the expert guidance you need.