Corporate Law: Forming an LLC In Arizona
Wanting to form a business but don’t know where to start? Have a business idea and want to establish a professional identity for it? Looking for a way to remove the financial burden of a personal venture and turn it into a separately taxable corporate business? A Limited Liability Company, here forth known as an Arizona LLC, could be the answer you’re looking for.
The corporation is a legal entity that exists to conduct business. An Arizona LLC is one of a few ways to form a business and its one of the simplest way of structuring your business. It is a way to separate and protect your personal assets from those that are held under the banner of your company. This is a crucial safety net in the event of financial hardship or yourself/company is being sued. You can think of an Arizona LCC as being the dividing barrier between yourself and your business’s identity. Some benefits of starting one are that LLC’s are tax efficient, provide limited liability for its members and can be an umbrella for an array of individuals, other corporations, LLC’s or entities all under one banner.
Here is the rundown on how to start an Arizona LCC
1. Name your LLC
- The name of your business must include “Limited Liability Company” or “Limited Company” or “LLC”.
- It must be distinguished from other existing businesses.
- You can search the Arizona Corporate Database to see if your business idea name has been taken
2. Draft an Operations Agreement
- This agreement outlines how the LLC will be governed, who owns what percentage of what, voting rights, duties of each member, buyout rules, allocations of profits/losses, and meeting schedules.
- These agreements are not contractually binding, but are a well-documented benchmark of a company and their internal functions, should they be put into contended in the future
3. Appoint a Statutory Agent
- This is someone who is responsible for accepting legal documents and lawsuit papers on behalf of the Limited Liability Company, including all pertinent notices from the Arizona Corporation Commission.
- This person must be of legal age, a permanent resident of Arizona, and have a permanent address in Arizona.
4. Filing Essential Documents
- Your entity should complete and file Articles of Organization with the Arizona Corporate Commission and submit the appropriate paperwork.
- The Articles of Organization will include: The name of the LLC, the registered agent of which the business is put under, the address from which it operates, the type of management structure, as well as the organizer’s name, address, and signature
- The Articles of Organization are the essential bio of your company; who you are, where you’re located, and how you function.
- Pay the $50 filing fee to get your LLC recognized by the ACC
- These pertinent forms are approved by the Corporate Commission, who address a letter to your statutory agent making the publication notice of the LLC’s formation.
5. Additional Steps
- Apply for Employer Identification Number (EIN). This is issued by the Internal Revenue Service (IRS) and is the unique Tax ID number associated with your company.
- This is done by filing a “Form SS-4, Application for Employer Identification Number.”
- If you are selling products that require sales tax, you must register for a taxpayer identification number (TIN).
- Open a bank account specifically for your business. You will need your articles as well as necessary tax documents.
- Publish your documents in the appropriate publications that will document the existence of your new business. The Arizona Corporation Commission can provide a list of newspapers that meet the necessary criteria for publication.
Contact a Leading Arizona LLC Attorney
As one of Arizona’s leading corporate law firms, Mr. Zolfaghari and his team at The Zolman Law are proud to have helped more than 2,000 people. If you are considering forming an LLC or have any other legal questions affecting your business, please call the Zolman Law today for a free initial consultation.