Arizona LLC

How To Get an LLC in AZ

Arizona is an affordable and business-friendly state offering many incentives. The state averages a 30% cost advantage for businesses that move there from California. The enviable tax credits are another bonus.

The Grand Canyon State boasts a similar climate to California. However, businesses there rarely worry about the weather hurting their income. The area counts on 300 days of sunshine each year, and natural disasters are rare.

Arizona’s steady growth means an expanding customer base and a rich talent pool for hiring. For example, Phoenix notches a net increase of 42,000 people per year. The many universities in the state supply business owners with qualified young graduates to employ. To take advantage of all these benefits, look at each step of how to get an LLC in AZ.

Start your LLC today!

Step 1

Name Your LLC

The process begins with selecting the name of your LLC. The name must be available in the State of Arizona. Find out if your idea is available with the Arizona Corporation Commission’s Business Entity Search. It is wise to find a name free to use as a web domain. This simplifies your future marketing and makes your company easier to find online.

Follow the naming policy laid out in the ACC Naming Standards. Here are the four points to remember:

  • The name must not be misleading to the average person. (For example, you may not use words and phrases like "Homeland Security," "FBI" or "IRS." These words imply an affiliation with the government.)
  • The name must be distinct from all other registered Arizona businesses.
  • Avoid words such as "bank," "attorney" or "university." These terms are restricted to organizations that fulfill those roles. The state government requires additional paperwork to approve these expressions.
  • The company name for an LLC in Arizona must end in some variation of the term "LLC." This includes "L.L.C." or "Limited Liability Company."

Step 2

Assign the Statutory Agent

The statutory agent is the person or entity who receives the company’s documents. Tax forms, government correspondence and legal proceedings come to the statutory agent. The agent must list a physical address in the State of Arizona, so the address cannot be a P.O. box.

You may name anyone of your choice to be a statutory agent. To recognize this in writing, have the agent sign a Statutory Agent Acceptance form and submit it with your Articles of Organization. The owner can be the agent, but many business owners prefer to use a registered agent service.

Step 3

Create Your Operating Agreement

Some states require an operating agreement. Arizona does not; however, it is best to have one. A business without this document falls under the default rules for LLCs in Arizona, and those rules may not fit your business. Tailor the agreement to your firm’s needs.

The operating agreement specifies your organization’s management structure. This action protects all parties in the company. You can settle disputes quickly when you outline the powers and privileges of all members. You can also specify how to add or remove members.

There are two types of management: manager-managed and member-managed. The owners appoint a manager to run routine operations in a manager-managed LLC. In this structure, the owners typically reserve their right to make the top decisions for the firm. On the other hand, a member-managed LLC means the owners directly manage the company.

Include important operational details in the operating agreement. Outline the procedures to follow if you ever want to dissolve the LLC. (This requires filing Articles of Dissolution.) You should also specify the percentage of the company owned by each member.

Step 4

File Your Articles of Organization

You now have the information required to file your Articles of Organization and become a registered business. Decide whether to submit the Articles of Organization as a hard copy or electronically. Either option works, but more and more people find electronic filing easier.

For paper submission, follow these four steps:

  • Prepare a cover sheet.
  • Fill out the Statutory Agent Acceptance form.
  • Complete the correct form to state whether you are a manager-managed or member-managed LLC in Arizona.
  • Include a check or money order for $50 (the state fee for filing).

Then mail your documents to this address:

Arizona Corporation Commission
Corporate Filings Section
1300 W. Washington St.
Phoenix, AZ 85007

You may also bring a paper copy to the Phoenix office in person. You can pay the fee with cash or a credit card if you do so.

To file electronically, create an eCorp account with the ACC, and pay the $50 fee. You can pay an extra $35 fee to expedite processing for paper and online filing. 

Step 5

Request Your Employee Identification Number

An EIN is similar to a Social Security number, except it’s for a business. An EIN may be called a Federal Tax Identification Number or a Federal Employer Identification Number. The federal government requires an EIN if you have more than one owner or any employees. Even if you run the operation alone, an EIN is valuable. Apply with the IRS to obtain your EIN.

Step 6

Finalize the Publication Requirements

Arizona mandates that LLCs must publish a notice of formation. You must post the details in an approved Arizona newspaper for three consecutive editions within 60 days of LLC formation. You receive an Affidavit of Publication after the three printings.

You should include the LLC’s name and address as well as the statutory’s agent name and address. You must list the management structure. It’s also required that you state the names and addresses of managers if the LLC is manager-managed. State the names and addresses of the owners if it is member-managed.

The only exclusion to this requirement is if your LLC is in Pima County or Maricopa County. In that case, the ACC posts a notice on their Public Notice Database. Using a statutory agent service with an office in either county saves you the cost of this requirement, which runs from $30 to $300.

Step 7

Obtain the Appropriate Permits and Licenses

Ensure you have all the necessary licenses and permits that apply to your business to meet local, state and federal regulations. It is crucial to have all these documents before opening for business.

How To Keep Your LLC Compliant

Your legal work is not over once you complete the above steps. Remember these necessary items to guarantee your LLC remains compliant and open for business.


Register for the state taxes that apply to your business. You must register for Unemployment Tax and Employee Withholding Tax if you hire employees. You must register for an Arizona Transaction Privilege Tax License to sell physical items. This is commonly referred to as sales tax.

Be sure to report income to the IRS with a 1040 Form Schedule C if you are a single-member LLC or a Form 1065 Partnership Return if you are a multi-member LLC.


There are no annual government fees for an LLC in Arizona. However, your licenses and permits may need renewal and require payment. Review the requirements for each to ensure you do not fall out of compliance.


Always follow state guidelines for employees. You must report new hires to the state. Withhold employee taxes from their paychecks, and keep workplace compliance posters posted in visible workspaces. Ensure all employees are legally permitted to work in the U.S.

Other Helpful Facts for Starting Your Business

Purchasing Business Insurance

Mishaps occur, so avoid a costly liability by purchasing business insurance. General liability insurance protects the company from lawsuits. Get professional liability insurance if you provide a professional service, such as legal or medical. This protects you from possible malpractice claims. If you have employees, workers’ compensation insurance is a requirement.

Creating a Website for Your Business

A website is not required for a business, but customers expect companies to have a website. Website builders are easy to find, and the cost is reasonable. Hire someone to care for website maintenance if you cannot or lack the time.

Keeping Your Personal and Business Finances Separate

An LLC protects your personal assets from any business liabilities. Save yourself many headaches by getting a business checking account and credit card once you receive your EIN. Even if you have an LLC, you must maintain a “veil” between personal and business assets. Blending the two groups leaves your personal belongings vulnerable if someone sues you.

Building Your Business Credit

Use your business credit card responsibly and be careful with other forms of credit. A good credit rating makes it easier to qualify for credit when you need it. Check your business credit report often so you can watch for any irregularities or fraudulent activity.

Getting a Certificate of Good Standing

You can receive a Certificate of Good Standing for an Arizona LLC that stays compliant. You can request the certificate from the ACC. This document comes in handy if you need to get a loan, wish to convert your business to a foreign LLC or need to renew permits and licenses.

The Best Help for Forming Your LLC

We recommend IncAuthority as the best option to quickly set up your LLC in Arizona. Not only will they fill your articles for free (you only pay state fees), you will also receive one year of free registered agent services. This simple solution takes all the headaches of filing off of your plate so you can stay focused on the crucial task of running your company. Don’t wait to form your LLC. File today!

Start your LLC!