How to Form an LLC in Arizona
For many self-employed Arizonans, forming an LLC is the best choice for their business. Likewise, for many sole proprietorships, partnerships, and other small businesses, LLCs—limited liability companies—offer protection from legal liability and simplified tax procedures. Even though Arizona LLC law makes the process of forming a LLC relatively simple, it is less than half the battle—you will still need an Operating Agreement, appropriate permits and licenses, and a federal tax ID number.
At Law Offices of Donald W. Hudspeth P.C., we put our personal experience as small business owners and our decades of work as Arizona LLC attorneys to work for you. We will guide you through every step of the process, ensuring compliance with federal and state laws, and getting your business off the ground without a legal hitch.
Arizona LLC basics
Start by running a name search to make sure you are not trying to incorporate your LLC under another corporation or company’s name. Although this seems simple enough, beware: Arizona deems certain words indistinguishable from other words, such as property, realty, and real estate. These rules are not explained on the Arizona Corporation Commission’s website—to simplify the process, you may want to involve an Arizona LLC lawyer from the beginning.
Once assured that your business name is unique, go to the Arizona Corporation Commission’s website and follow their instructions for filing form LL0004, but be prepared. To file these Articles of Organization, you must disclose:
- A designated name for the LLC
- The location of its registered office
- A statutory agent for service of process in Arizona
- Its date of dissolution (if its existence is to terminate within a certain time frame)
- A statement indicating if management will be exercised by managers or members
- Names and addresses of each manager or member who is responsible for management
Arizona LLC formation
Once approved by the Arizona Corporation Commission, you must publish your Articles of Organization in the county where your business is located. But the Articles of Organization are nothing more than a bare-bones skeleton of your business. To flesh out your business, you need an Operating Agreement signed by each member of the LLC. The Operating Agreement should cover things like banking arrangements, start-up capital and additional member contributions to the LLC, payments, salaries, accounting records and practices, the rights and duties of members and managers, and dozens of other issues that each business should address in writing.
Where the LLC has two or more members then the Operating Agreement is key because it sets forth the ownership, management authority, and satisfies the Internal Revenue Code. With LLC’s “contract trumps statute” so negotiating and having this agreement is important.
Additionally, depending on what sort of business you create, you may need state or municipal permits and licenses.
LLC attorneys in Arizona
At Law Offices of Donald W. Hudspeth P.C., we take you through the LLC formation process from beginning to end. As Phoenix business lawyers, we understand the issues new businesses face, and can help you avoid pitfalls and problems from the very beginning. If problems do arise, we are experienced business litigators and will fiercely advocate your interests.
Call us at 602-265-7997, toll free at 866-696-2033 or contact us online today to arrange a consultation, and build your business on a solid legal foundation from the very start.
At Law Offices of Donald W. Hudspeth P.C., we do more than connect the dots—we create the dots.