Arizona LLC

This detailed step-by-step guide explains how to form an Arizona LLC, from selecting a compliant business name to filing documents and meeting ongoing legal requirements.

1. Name Your Arizona LLC

Choosing the right name for your LLC is an important first step. Your business name should clearly represent what your company does, be easy to remember, and comply with Arizona naming rules.

Ways to Choose a Business Name

You can approach the naming process using several methods:

Define Your Business Concept: Clearly outline your products or services before selecting a name.
Ask for Suggestions: Get feedback from people you trust who understand your vision.
Search Online: Check whether domain names and social media handles are available and look for similar businesses.
Use Business Name Generators: These tools can provide inspiration, but they shouldn't replace thoughtful branding decisions.

Your business name becomes your brand identity and is often the first impression customers have of your company, so take your time with this step.

Check Name Availability in Arizona

Once you have a few name ideas, search for availability using the Arizona Corporation Commission (ACC) database. It's important to check for both exact matches and names that may be deceptively similar, as Arizona requires LLC names to be clearly distinguishable.

Arizona LLC Naming Rules

An Arizona LLC name must:

Include "Limited Liability Company" or an accepted abbreviation such as LLC or L.L.C.
Be distinguishable from all other registered business names in Arizona
Avoid words that imply association with a government agency
Not include terms such as corporation, incorporated, or association, or any abbreviations of those terms

Check Federal Trademarks

After confirming state availability, search the U.S. Patent and Trademark Office (USPTO) database to ensure the name is not trademarked at the federal level.

Reserve Your Arizona LLC Name

After confirming availability, reserving your LLC name is recommended.

How to Reserve a Name:

Visit the Arizona Corporation Commission's eCorp system
Create an online account if you don't already have one
Select Reserve an Entity Name
Complete the online application and submit payment

Fees & Processing:

Online name reservation fee: $45 (includes expedited processing)
Name reservation period: 120 days
Online filings are processed immediately and prioritized over paper filings
Paper applications are also accepted but take longer to process

Doing Business As (DBA) / Trade Name

If you want to operate under a name different from your LLC's legal name, you must register a DBA, known in Arizona as a trade name.

Why Register a DBA?

To offer new products or services under a different brand
To accept payments and open bank accounts under a separate business name

Example: "JJ's Waffles LLC" may register "JJ's Muffins" as a trade name.

How to Register a Trade Name:

File the Trade Name Application online through the Arizona Secretary of State
Pay the $10 filing fee

Trade names must be filed online, are processed within a few weeks, and remain valid for five years.

2. Select a Statutory Agent

Arizona requires every LLC to appoint a statutory agent to receive legal documents, tax notices, and official correspondence on behalf of the business.

Statutory Agent Requirements

The statutory agent must:

Be at least 18 years old
Have a physical street address in Arizona
Be available during normal business hours
Be authorized to operate in Arizona if the agent is a business entity

You may act as your own statutory agent, but many LLC owners hire professional services for convenience, privacy, and reliability.

3. Determine Your Management Structure

Arizona LLCs may be structured as either:

Member-Managed LLC

All members participate in day-to-day management
Best suited for small LLCs with active owners

Manager-Managed LLC

Members appoint one or more managers to run operations
Ideal when some owners are passive investors
Managers may be members or non-members

Arizona requires you to specify the management structure in your Articles of Organization.

4. File Articles of Organization with the Arizona Corporation Commission

To officially form your LLC, you must file Articles of Organization with the Arizona Corporation Commission.

Information Required

LLC name
Principal office address
Statutory agent name and address
Statutory office address
Management structure
Names and addresses of members or managers

After completing the form, review all details carefully before submitting payment.

Filing Fee & Processing

Filing fee: $50
Online filings are processed faster than mailed submissions
Mail filings may take several weeks

Arizona Corporation Commission Contact Information

Phoenix Office:
1300 W. Washington Street
Phoenix, AZ 85007

Tucson Office (Walk-ins):
400 W. Congress Street
Tucson, AZ 85701

Phone: (602) 542-3026
Email: answers@azcc.gov

5. Draft an Operating Agreement

An Operating Agreement defines the internal structure and operating rules of your LLC.

Arizona does not legally require an operating agreement, but having one is strongly recommended, even for single-member LLCs.

Typical Operating Agreement Sections

LLC name and principal address
Duration of the LLC
Statutory agent details
Ownership percentages
Management authority and voting rights
Profit and loss distribution
Member changes and amendments
Dispute resolution procedures
Record-keeping and communication rules

Although templates are available online, legal review is recommended to ensure clarity and enforceability.

6. Get Your Employer Identification Number (EIN)

An EIN is issued by the IRS and is used for tax reporting and identification purposes.

You must obtain an EIN if:

Your LLC has more than one member
You plan to hire employees
You elect corporate taxation

The IRS requires that EIN applications list a responsible party, who must be an individual with control over the LLC.

7. Obtain Business Licenses and Permits

Depending on your business activities, you may need licenses at the federal, state, and local levels.

Common Requirements

Federal licenses for regulated industries
State licenses through the Arizona Commerce Authority
Transaction Privilege Tax (TPT) License if selling taxable goods or services
City or county business licenses

Failing to obtain proper licenses can result in fines or business shutdowns.

8. Determine Your Tax Status

LLCs are treated as pass-through entities by default.

Default Tax Treatment

Single-Member LLC: Taxed as a sole proprietorship; income reported on Schedule C
Multi-Member LLC: Taxed as a partnership; income passed through via Form 1065

Optional IRS Elections

C-Corporation: LLC pays corporate income tax; dividends taxed to owners
S-Corporation: Owners receive a salary plus distributions, potentially reducing self-employment taxes

Each option has different tax implications and should be reviewed carefully.

LLC Overview in Arizona - Additional Requirements

Open a Business Bank Account

Separating business and personal finances is essential to preserve liability protection and simplify bookkeeping.

Apply for a Business Credit Card

A business credit card helps build business credit and manage startup and operational expenses.

Get Business Insurance

Common insurance policies include:

General liability
Professional liability (E&O)
Workers' compensation
Property and equipment insurance
Commercial auto
Business Owner's Policy (BOP)

Maintain LLC Records

Keep copies of:

Articles of Organization
Operating Agreement
Licenses and permits
Contracts and financial records

No Annual Reporting Requirement

Arizona does not require LLCs to file annual reports or pay annual state filing fees.

Arizona LLC FAQs

Starting an Arizona LLC involves several costs. Reserving a business name costs $45, while filing the Articles of Organization costs $50. If you plan to operate under a DBA, the filing fee is $10. Business license costs vary depending on your location and industry. While Arizona does not require annual LLC reports, certain businesses may still incur renewal or licensing fees.

You can search for an Arizona LLC using the ACC eCorp Entity Search. Enter the business name or entity number to view the LLC's status, filing history, and statutory agent details. For DBAs, check the Secretary of State's Trade Name database.

To file a DBA (trade name), confirm the name's availability using the Secretary of State's search tool, then submit the online Trade Name Application and pay the filing fee. Processing typically takes a few weeks, and trade names must be renewed every five years.

To convert an LLC to a Professional LLC (PLLC), file Articles of Amendment with the Arizona Corporation Commission, update the business name to reflect "PLLC," pay the filing fee, and ensure all required professional licenses are active and current.

An Arizona LLC name must include "Limited Liability Company" or an approved abbreviation, be distinguishable from other registered names, avoid restricted banking or government-related terms without approval, and not mislead the public or infringe trademarks.

Online filings generally take a couple of weeks to process, while mail filings take longer due to delivery and handling times. Expedited processing is available for faster approval.

Arizona LLCs are typically taxed at the owner level. Members pay federal income tax and Arizona state income tax on their share of profits. LLCs selling taxable goods must collect Transaction Privilege Tax, and those with employees must handle payroll and withholding taxes. LLCs that elect corporate taxation are subject to corporate income tax rules.

No, Arizona does not require LLCs to have an operating agreement. However, without one, the LLC is governed by default state rules. A written operating agreement provides clarity, reduces disputes, and strengthens liability protection.

Yes, you may serve as your own statutory agent if you have a physical Arizona address and are available during business hours. However, your address becomes public record, which is why many owners choose professional statutory agent services.

Acting as your own statutory agent costs nothing. Professional statutory agent services typically charge an annual fee, depending on the provider and level of service.

How to Start Your Own LLC in Arizona