Setting up a new LLC can seem daunting, and Arizona LLC requirements can be confusing. If you are just getting started, here are five things you’ll need to meet Arizona LLC requirements.
Disclaimer: Please note that this article is not intended to be legal advice. You should always talk to an attorney who is skilled in business and civil law about your unique situation.
Who can file for an Arizona LLC?
An Arizona LLC gives you some of the benefits of a corporation and keeps your business owners’ personal liability to a minimum.
You can file to register as an LLC if you do business by yourself or if you run your business with other people. An LLC can contain just one member or many members, depending on your goals, projected income, and preferred tax structure.
In general, anyone legally allowed to start a business in Arizona can form an LLC. And, corporations and existing LLCs can be members of an LLC.
What do I need to prepare before I file for my LLC?
Before you file to register your LLC, you will need to gather the appropriate forms and make some decisions. Here are five things you will need in order to meet the Arizona LLC requirements.
1. Arizona LLC forms
First, you’ll need to locate all of the Arizona LLC forms you will need to complete to legally file for recognition as an LLC. All of the forms can be located online through the Arizona Corporation Commission. You can also file your LLC application online.
Here are the forms you will need, with a brief description of each.
– Cover sheet: This accompanies all other documents to keep them organized under your application. Each document you submit needs a cover sheet.
– Articles of Organization: The Articles of Organization clearly lay out your LLC structure. It designates a statutory agent whose name will be on the tax documents. It also gives a business address and outlines the business of the LLC. This outline is a broad description that allows for the expansion of the LLC in the future.
– Statutory agent acceptance: On this form, the chosen agent accepts and commits to fulfilling their legal obligations on behalf of the Arizona LLC.
– Attached structure documents: You’ll choose between a manager-owned and member-owned LLC. For a manager-owned structure, you must list every manager and also all members who own a 20% stake or more in the LLC. For a member-owned structure, you must list all members of the LLC.
There are other Arizona LLC forms that may be necessary based on your LLC’s organization and specific situation. To make sure you complete all the correct forms, getting legal counsel early in the process can be helpful.
2. Arizona LLC fees
Arizona LLC fees are predictable but can vary depending on a few different factors. For example, if you are attempting to register a foreign LLC in Arizona, that form alone will cost $150 to file. Other Arizona LLC fees may include:
– Articles of Organization: $50
– Application to reserve a name: $10
– Any amendments to your application: $25
If you choose to expedite the processing, there is an additional fee for each form. Fees are set by the state of Arizona and are the same across the state (and are non-refundable). In Arizona, there are no annual fees for your LLC. In general, the Arizona LLC cost is reasonable, but it’s important to be aware of how much your total cost will be before you file.
3. The right name
Naming your LLC is important. Even if you have another name under which you conduct business, the legal name of your LLC must meet a number of requirements. The name must contain the words “limited liability company” or the abbreviations “LLC” or “L.L.C.” It also cannot contain prohibited words that sound like a federal or state agency (for example, “FBI,” or “Treasury”).
Most importantly, you must choose a name that is not already in use by another entity. You can run a search for that here.
It’s not required, but you might also want to see if the website domain name for your business is available. Imagine creating an iconic brand and then not being able to use your brand’s name as your website. Plan ahead for a coordinated email and marketing structure that includes a name that is available to use for a website and related email addresses.
4. A defined management structure
Before filing, you will need to decide on a management structure for your Arizona LLC. The two management structures of an LLC are member-managed and manager-managed.
Member-managed LLCs may be best if there are a small number of members who are all actively engaged in the company. A manager-managed LLC works well if not all members wish to participate in day-to-day activities or if they live in other states or countries, which may limit their participation.
It takes between four and six weeks to process an Arizona LLC application. Processing times depend on the complexity of your organization and the workload of the office processing your application.
If you leave out crucial information or neglect to submit the proper forms, this can push your application time well past the six-week mark. Again, consulting with an attorney or a document preparer can ensure your application is complete to prevent unnecessary delays.
It is possible to get an expedited decision on the formation of your Arizona LLC, but it will cost you. Each document to be expedited requires its own expedited document form, with an additional fee of $35.
What else should I have?
For one, you’ll need to apply for an Employer Identification Number, or EIN. You can apply online, and the process is quick and simple. The IRS provides a lot of helpful information about EINs, including what kinds of businesses need them. Be sure to register directly through the IRS website. Many private companies offer this service for a fee, but registration through the IRS is fast, easy, and free.
You also may want to create an operating agreement. This is a more complex document that lays out the operating procedures, business responsibilities of members, distribution expectations, tax status, and other matters. This agreement helps you and the other LLC members lay out how the business will run and make decisions. Without an operating agreement, the Arizona statutes applicable to LLCs will be applied. These may not reflect what you and the other members intended when establishing your business.
ARTEMiS Law Firm can provide guidance on everything from affordable legal document preparation services to helping you write your LLC’s operating agreement. Our qualified professionals can work with you every step of the way.
If you need help gathering the things you need to meet Arizona LLC requirements, give ARTEMiS Law Firm a call today!