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Do you want to start an LLC in Arizona? Your thoughts are valid as it is the dream of every business owner to, amongst other things, have a proper business structure allowed by the state regulations.
Businesses considering a hybrid system that combines corporation and partnership or sole proprietorship need to form an LLC. The knowledge of the registration process becomes essential hence the need for a great LLC service. Stay with us as we go through the step-by-step guide applicable.
Step by step guide to starting an LLC in Arizona
1. Choose a name
The choice of a name is an essential step of registering a company because the name of a company ordinarily tells the customers about the brand. So, beyond couching catchy brand names, the provisions of the applicable regulations should be strictly adhered to. The Arizona Revised Statutes makes provisions for permitted characters to form an LLC in Arizona.
To open an LLC in Arizona, the following must be considered in choosing a name:
- The name must include "limited liability company" or "limited company" or "L.L.C.," "L.C.," "LLC," or "LC" for a non-professional LLC.
- The words "association," "corporation," "incorporated" can not be part of the name of a non-professional LLC.
- An existing registered business name in Arizona can not be picked. So, before settling for a name, be sure by researching the Secretary of State's/ Arizona Corporation Commission website that there is no business with the name.
- Names/words affiliated with the government can not be included in the business name; the terms such as State Department, CIA, FBI, Treasury, etc., are prohibited from being included in the business name.
- Words such as "bank," "deposit," "credit union," "trust," or "trust company" which implies that the company is in the banking, credit union, or trust business can not be used. the words can be used subject to the fulfillment of the proper processing and if the company is truly into the banking, credit union, or trust business.
2. Availability check and Reservation of Name
Following selecting a proper name, the next step is to apply to the commission to reserve the name for the business, though the name will only be reserved if it is available.
An availability check will be performed first to ensure the name's availability, and reservations can be made for up to one hundred and twenty days.
It is safer to perform an availability check first on the Arizona Corporation Commission (A.C.C) website to ensure its availability before putting too much energy into the choice of name. In the alternative, having more than one option to choose from can be considered; if one of the options is unavailable, the other options can be used.
3. Appoint a Registered Agent
When forming an LLC, it is necessary to employ a registered agent’s service. The agent will accept legal and non-legal documents such as tax from the government on behalf of the business. The registered agent's primary role is to assist the company in complying with the regulations.
The agent can be an employee of the LLC, one of the owners, or even someone not affiliated with the company, whether it is an individual or a corporation.
The registered agent must reside in Arizona and be authorized to carry out business there. The northwest registered agent is an example of an authorized agent recognised in the state of Arizona.
4. Prepare and file the Articles of Organization
The Articles of Organization must then be submitted by the applicant to the A.C.C. in furtherance to the step to open an LLC in Arizona. The approval of the LLC Articles of Organization is critical because its approval officially creates the LLC.
The following information is required to file the Articles of Organization:
- The permitted name of the LLC.
- The address of the LLC.
- The type of LLC, whether it is professional or non-professional.
- The service description for a professional LLC.
- The statutory agent's name and address.
- The structure of management.
- The signature of the person forming the LLC.
5. Obtain Certification from the State
A.C.C. staff will review and approve the documentation as in the Articles of Organizations. If an application to form an LLC in Arizona is approved, a letter of approval with further instructions will be issued. If a submission is rejected, a note with instructions on how to resubmit will be sent.
On approval, a certificate that confirms the existence of the LLC will be formally issued by the state.
6. Create an Operating Agreement
Create an Arizona Operating Agreement that clearly defines the terms of ownership and management structure, including the options of conflict resolution, LLC's property, legal liabilities, LLC rules, dissolution/winding up, and so on. Failure to create an operating agreement will result in an outright violation of the Arizona LLC regulations.
7. Apply for an Employer Identification Number (EIN)
After starting a new LLC, the company will want to hire employees, open a business bank account, and pay taxes to the federal and state governments; this is where the Employer Identification Number (EIN) comes in because it will be required to do all of the above.
The Internal Revenue Service (IRS) can provide the Employer Identification Number on request. It is also referred to as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN).
8. Finalize the Publication Requirements
Arizona Regulations require that a notice of formation be published in a nationally approved newspaper within 60 days of the receipt of approval notification of the LLC.
The publication must include the following:
- The name of LLC.
- The Statutory Agent's name and address.
- If it differs from the Statutory Agent's address, the LLC's principal place of business address.
- If the LLC is managed by members or by a manager.
- The name(s) and address(es) of the LLC manager or each LLC member.
The total fee, including the accelerated Arizona State Filing Fee, Formation Service Fee, and Yearly Statutory Agent Service, is approximately $250 to start an LLC in Arizona.
How long does it take for an LLC to be approved in Arizona?
In Arizona, it takes approximately three weeks to approve an LLC; however, the process can be accelerated and completed in as little as ten days.
Can a reserved name be used by another person?
Yes, a reserved name can be used by another person if it is transferred to another. However, a notice will be signed by the person who originally reserved the name, stating the name and address of the person to whom the reservation is being transferred.
That is all required to start an LLC in Arizona; as simple as the process may appear from choice of name till the publication stage, there will be a need to engage a registered LLC Service agent or an incorporation service that’s in compliance with the rules. A good option is the Northwest registered agents. This firm has a great reputation in LLC registration in Arizona, and they are the best bet for both new businesses and old.
Hope this piece has helped you in starting your LLC in Arizona. What has been your experience trying to register an LLC in Arizona? Let’s get talking about this in the comments.
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