Form an Arizona LLC

At LawInc we are Arizona LLC formation experts who can help you form a Arizona LLC, the right way. We file the Arizona LLC Articles of Organization with the Arizona Corporation Commission Division and prepare a customized operating agreement. We can also obtain the Arizona LLC’s Tax ID Number, in as quickly as 24 hours. Allow LawInc to walk you through the Arizona Limited Liability Company formation process. Our clear, concise and easy to use website, helps keep things simple.

Arizona LLC Name

The first step in forming an Arizona Limited Liability Company (LLC) is selecting the business name. Arizona LLC names:

• Must contain with “Limited Liability Company,” “LLC,” “L.L.C”
• The name may contain the name of a member or manager.
• Must be distinguishable from the name of any domestic or foreign LLC, corporation, non-profit corporation, limited partnership, limited liability partnership on file with the Arizona Corporation Commission.

An available name may be reserved for a 120-day period.

LawInc.com permits you to choose up to three names and will conduct a name search for your Arizona LLC, prior to filing.

Arizona LLC Filing Procedure

Arizona LLC filing Procedure: When forming a Arizona LLC, Arizona Articles of Organization must be filed with the Arizona Corporations Commission. The Arizona filing fee is $50 + $35 for expedited filing. Arizona does not require original signatures on filings.

Arizona LLC Publication: Within sixty 60 days after the Commission has approved the filing, the Arizona LLC must publish the Articles of Organization in an Arizona newspaper of general circulation in the county of the known place of business for three (3) consecutive publications. A list of acceptable newspapers in each county will accompany the Commission’s approval letter. Failure to publish may lead to dissolution of the Arizona LLC. Filing an affidavit of publication is not necessary.

Arizona LLC Organizers: An Arizona limited liability company can be formed by one (1) or more individuals.

Arizona LLC Members: Arizona LLCs require 1 or more members. There is no residence or age requirement. Arizona LLC members are not required to be listed in the Articles of Organization.

Arizona LLC Duration: The period of duration of a limited liability company shall be perpetual unless the Arizona Articles of Organization place a limitation on the company’s existence or until dissolution or termination.

Arizona LLC Registered Agent: An Arizona LLC must maintain a registered agent and office to receive service of process in Arizona. The Arizona registered agent should be available, at an Arizona physical address, during normal business hours to accept important legal and tax documents on behalf of the Arizona LLC.

Arizona LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but an Arizona LLC operating agreement should reference how the Arizona LLC is managed, allocation of profits and losses and member capital contributions. The Arizona LLC operating agreement does not need to be filed.

Arizona LLC Filing Procedure

Arizona LLC Annual Report: Arizona LLCs are not required to file annual reports.

Arizona LLC Publication: Within sixty 60 days after the Commission has approved the filing, the Arizona LLC must publish the Articles of Organization in an Arizona newspaper of general circulation in the county of the known place of business for three (3) consecutive publications. A list of acceptable newspapers in each county will accompany the Commission’s approval letter. Failure to publish may lead to dissolution of the Arizona LLC. Filing an affidavit of publication is not necessary.

Arizona LLC Business License: Arizona requires most businesses to obtain a business license and pay a fee if operating in the state. Please check with the State of Arizona to ensure your business is complying with the license requirements for your particular profession.

Arizona LLC Post-Filing Requirements

Arizona State Tax: Arizona LLCs are classified for Arizona tax purposes based on their federal income tax classification. The LLC tax rate for Arizona is variable, depending on Arizona taxable net income.

Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:

• Sole proprietorship
• Partnership, or
• Corporation.

Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on Arizona LLC net income must be paid just as you would with any self-employment business.

Most Arizona multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, Arizona LLC profits are reported and allocated to each of the owners according to the Arizona LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all Arizona LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.

If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.

Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the Arizona LLC has more than one owner, or any employees.

Arizona LLC Dissolution/Cancellation Procedure

In order to dissolve a Arizona LLC, the members or managers must file Form LL: 0020 Articles of Termination with the Arizona Corporation Commission. The Certificate of Dissolution should include the reason for dissolving the LLC and the effective dissolution date. The fee for filing a Arizona Articles of Termination is $35 + an additional $35 for expedited services.