How To Start An LLC In Arizona 2023?
It always feels nice to have your business up and running in any state. Before all this can happen, you need to go through the proper channels to have a legitimate business. It is why some people might be wondering, how to start an LLC in Arizona successfully. And what does the LLC Arizona cost?
The Arizona Corporation Commission has tried to give you all the information you need to form a foreign limited liability company in Arizona. However, this guide is what you need to learn more about the costs of setting up your business. Let us dive into the guide for more details.
LLC Arizona: Start An LLC In 6 Steps
- Name your Arizona LLC
- Choose your registered agent
- File articles of organization
- Prepare an operating agreement
- Obtain an EIN
- File annual reports
How To Start An LLC In Arizona?
Name Your Arizona LLC
It is vital to have a unique name when going through the process of Arizona LLC formation. The name that you choose for business in Arizona should have the following features;
- It must be available for use in Arizona state for you to get licenses and permits
- It has to meet the existing Arizona business naming requirements
- Should also be available in terms of a web domain
Under the web domain section, check your business name online to see its availability.
Choose Your Registered Agent
Like most states, Arizona LLC formation requires that you choose a statutory agent. This is the person who would act as the main contact person for the state. Sometimes you may need to pay a registered agent service to provide this service.
The other requirements for a statutory agent include;
- Must be of age 18 years or older
- The agent must have a physical street address in the state of Arizona
- Should be available during normal working hours for some important processes
File Articles of Organization
This next step is quite essential. Luckily, you can file articles of organization online so long as you have the right agent. This has made it easier for business owners to have their documents checked before forming a Professional LLC in Arizona.
The articles of organization would also indicate more information such as if the business is member-managed or manager-managed, the business address, and more. Always consult with the attorney on how to file this information correctly.
The cost of filing articles of organization is $50. This amount is paid to the Arizona Corporation Commission.
Its filing address is:
- Arizona Corporation Commission
- Corporate Filings Section
- 1300 W. Washington St.
- Phoenix, AZ 85007
Prepare An Operating Agreement
Once you are done with the articles of organization, the next is to come up with the LLC operating agreement. It is worth noting that operating agreements[1] are not mandatory when you form your LLC in Arizona, but they are still vital.
An operating agreement is an important legal document that outlines the operating procedures and the business owners of an LLC. It is easy to see how such a document can help avoid possible conflicts in the future.
Obtain An EIN
Even with the Articles of Organization filed, you still need an Employer Identification Number (EIN) when you form an LLC in Arizona.
The EIN is issued by the Internal Revenue Service (IRS) to a limited liability company, and it is vital for filing taxes. You could say that the EIN can act as the social security number for a company.
Even a foreign LLC has to get an EIN to operate in the state.
Other than tax reporting, the EIN is vital when you want to open a business bank account and hire employees for the business.
File Annual Reports
Once you have filed Articles of Organization in Arizona and there is a statutory agent acceptance, you do not need to worry so much about annual reports for an LLC in Arizona.
Arizona does not require that your LLC should file annual reports to be in good standing. Just make sure you do your taxes, and everything should continue working smoothly.
Filing Requirements & Overall Arizona LLC Costs
Arizona LLC Annual Report (none)
The Arizona Corporation Commission does not require you to file an annual report[2] once you form an LLC in the state. However, you will have to file your taxes based on the Arizona Department of Revenue to keep the business in good standing.
LLC Annual Fees
There are no LLC annual fees in Arizona. You will, however, have to pay filing fees for forming the LLC.
The LLC formation fee for doing business in the state of Arizona is $50. This one includes filing your Articles of Organization online through the Arizona Corporation Commission.
Once the LLC formation has been approved, you need to publish an LLC Formation notice in an approved newspaper, depending on the county. It has to be done within 60 days after LLC formation approval. This should cost around $30 to $300.
Registered Agent Fee
A registered agent in Arizona is also referred to as a statutory agent. You can be your own agent or hire a company to handle this.
If you hire a company, we recommend ZenBusess which can provide excellent services with varying prices depending on the package you choose.
Application for Withdrawal (Foreign LLC)
The Arizona Corporation Commission also allows for foreign LLC formation. In this case, the cost of registering a foreign LLC is $150. Make sure to fill out the Foreign Registration Statement[3] form.
Business Licenses
The business licenses and permits will come after the LLC formation has been approved. The cost will vary largely based on the type of business and area you will be operating in. Learn more about local licensing[4] before deciding where to set up your business.
Taxes
Once you form an LLC, you are responsible for filing your taxes to keep the business in good standing.
The taxes will vary depending on the field of your business. Some of the taxes you will have to deal with include federal income tax, payroll tax, state taxes, transaction privilege tax, and so much more.
Other LLC Filing Costs
Below are some additional costs you may incur when forming an LLC in Arizona.
LLC Name Reservation Fee
To form an LLC, you need a business name. You can reserve it online for $45 or $10 through the mail. Keep in mind that the name can only be reserved for 120 days.
“Doing Business As” (DBA) Name
The Arizona Corporation Commission can allow you to file a Trade Name Application.[5] This allows you to have another name in addition to the LLC legal business name. This one costs $10.
Business Domain Name & Website
This largely depends on where you will be hosting your domain. It can be as low as $8.88 per year for a domain name.
As for the website, you may have to pay a professional to design and build a good business website which can easily cost over $1000.
Articles Of Organization Fee
The Articles of Organization filing fee is $50 through regular filing. It can go up to $85 for those who want expedited filing.
Attorney Fees
Hiring an attorney when forming an LLC in the state of Arizona is highly recommended. The attorney might charge an average of $500 to $2500 to help you form an LLC in Arizona, among other things.
There is also the $50 to $85 filing fee for setting up the LLC.
Tax ID Number (EIN)
The Employer Identification Number (EIN) is free. However, some companies can charge a fee to help you get one.
The Top 2 Arizona LLC Services
| Product | ||
| Name | ZenBusiness | Northwest Registered Agent |
| Full review | Read full review | Read full review |
| Link | Check Price | Check Price |
ZenBusiness
When you are looking to start an Arizona LLC, ZenBusiness will be a common choice for helping you achieve your dream.
The company offers one of the most affordable options when looking to form an LLC in the state of Arizona. It is even cheaper than some other well-known professional services such as LegalZoom.
The company also makes the process of forming an LLC faster and easier. You can be done with the notice of LLC formation in no time. Since it also offers statutory agent service, it will be a nice way of ensuring your business meets the legal requirements.
The company enjoys an impressive amount of online reviews that make it quite appealing to those who want its services. It has over 6,000 positive reviews, which should make most people find its services among the best.
ZenBusiness also offers the option of handling your annual report filing or any other LLC maintenance activities. This is only available when you choose the Pro package. As a result, you should end up having no worries working with such a company.
Northwest Registered Agent
The process of forming a new business requires lots of state-obligated paperwork, which can be a daunting task for many small business owners. Luckily, Northwest provides business formation services that can aid you in finding the appropriate documentation, completing it, and filing it in due time with the appropriate government agency (in this case, it’s the Indiana Secretary of State). They also provide customers with business advice delivered straight from the experts.
Besides assisting you in setting up your LLC, Northwest offers several additional services, including its own registered agent services and templates for designing an operating agreement, that new business owners will find quite handy.
Conclusion
You should now have all the information you need to start your Arizona LLC. This guideline talks about getting the business name, finding a statutory agent, the cost to form your LLC and anything else you need to pay.
Always remember to file your taxes or any other fees vital for maintaining the legality of your business. You can always consult your attorney to understand any other legalities to keep your business running legally.
Forming an LLC in Arizona requires filing Articles of Organization which cost $50 for regular filing or $85 for expedited filing.
There are several tax classifications in Arizona, like any other state. You may have to consult with your attorney or check the business category to fully understand the taxes you are supposed to pay.
The usual timeline is 3 weeks for LLC formations. However, it can be done within 10 business days if you pay for expedited processing. This one costs $85 for the approval process.
Yes, you can be your own Statutory Agent in Arizona as long as you meet the state requirements.
An Employer Identification Number (EIN) is also known as a federal tax identification number and is used to identify a business entity. It is also used by estates and trusts that have income that is required to be reported on Form 1041, U.S. Income Tax Return for Estates and Trusts.
Yes. An LLC isn’t exempt from collecting sales tax on products or other tangible personal properties sold in the various jurisdictions where their businesses currently operate.