A limited liability company (LLC) is a type of business structure. There are many advantages a business can have by being an LLC. By making a company an LLC, the private assets of the owners are usually not at risk in the case of a lawsuit. In order to become an LLC in Arizona, you will need to file with the Arizona Corporation Commission (ACC).
The first step in filing for an LLC that you should take is checking to see if there are any other companies registered in Arizona with your name. If there are no other companies with your company’s name, you can reserve the name until you file to become a LLC. However, a foreign corporation will have to file a name registration that will cost $10 or $35 for expedited service. Another important step in forming an LLC is getting a statutory agent, who must be a person, an Arizona corporation or LLC, or a foreign corporation or LLC that has permission to conduct business in Arizona. The LLC that you are trying to form cannot be its own statutory agent. Finally, it must be determined if the LLC will be member– or manager-managed.
You can file to become an LLC online, in person, or through the mail. The required forms you have to fill out are the articles of organization, statutory agent acceptance, and manager or member structure attachment. In the articles of organization you will have to include whether the LLC is a professional or nonprofessional LLC, the exact name of the LLC, the name and address of the statutory agent, the known place of business for the company, how long the LLC will last, whether the LLC will be manager- or member-run, and the signature of the organizer who put together the paperwork.
Foreign LLCs must take an extra step while registering by having to apply for registration. On the application, the applicant will need to state if the LLC is professional or nonprofessional, the company’s foreign name, the name the company intends to use in Arizona, the type of profession involved if the LLC is a professional one, where the LLC was formed, when it was formed, the general reason for the business, the statutory agent residing in Arizona, and the address of the business.
Arizona LLCs have a lot fewer requirements than other states. For example, you do not have to write up an operating agreement or file annual reports. There is also flexibility in choosing how you want to set up your taxes. You have 4 different tax options you can choose from: Subchapter S, Subchapter C, Subchapter K, or Disregarded Entity.
Unlike some states, Arizona does not permit nonprofit businesses to file as nonprofit LLCs. One may only form a regular LLC and apply for tax-exempt status with the IRS. Also, since the ACC does not require an operating agreement, they will not return any operating agreements to you that you send in as part of your application.
When creating an LLC, you want expert advice of a business lawyer to make sure you receive all of the advantages your business can receive. An Arizona business lawyer can assist you through the entire application process.