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How to Form a LLC in Arizona

Posted by Jared E. Holland | Oct 25, 2023 | 0 Comments

For many self-employed Arizonans, forming an LLC is the best choice for their business. Likewise for many sole proprietorships, partnerships, and other small businesses. LLCs—limited liability companies—offer protection from legal liability and simplified tax procedures. Even though Arizona LLC law makes the process of forming a LLC relatively simple, the creation of the LLC is less than half the battle—you will still need an Operating Agreement, appropriate permits and licenses, and a federal tax ID number. At Holland Law Group, PLLC, we put our personal experience as business attorneys to work for you. We will guide you through every step of the process, ensuring compliance with federal and state laws, and getting your business off the ground.

Arizona LLC Basics

To create an LLC, a name must be selected. That name must then be compared with names of other business to ensure the name is unique from other businesses. Although this seems simple, Arizona deems certain words indistinguishable from other words, such as property, realty, and real estate. Use of the word “trust” in a name may also cause problems unless the business is a banking institution. These rules are not explained on the Arizona Corporation Commission's website—to simplify the process, you may want to involve an Arizona LLC lawyer from the beginning.

After an acceptable name is selected, Articles of Organization must be filed with the Arizona Corporation Commission. Articles of Organization must include:

  1. A designated name for the LLC
  2. The location of its registered office
  3. A statutory agent for service of process in Arizona
  4. The date of dissolution (if its existence is to terminate within a certain time frame)
  5. A statement indicating if management will be exercised by managers or members
  6. Names and addresses of each manager or member who is responsible for management

Arizona LLC Formation

Once approved by the Arizona Corporation Commission Articles of Organization must be published in the county where the LLC is located. But the Articles of Organization are nothing more than a creating document. To flesh out your business, you need an Operating Agreement signed by each member of the LLC. The Operating Agreement should cover things like banking arrangements, start-up capital and additional member contributions to the LLC, payments, salaries, accounting records and practices, the rights and duties of members and managers, and dozens of other issues that each business should address in writing.

Where the LLC has two or more members then the Operating Agreement takes on greater importance because it sets forth the ownership, management authority, and satisfies certain requirements imposed in the Internal Revenue Code. With LLCs the Operating Agreement takes precedence over statutes. So negotiating and having this agreement is important.

At Holland Law Group, PLLC, our experienced attorneys walk our clients through every step of the LLC formation process. Our business lawyers understand the issues new businesses face, and can help you avoid pitfalls and problems from the very beginning. If problems do arise, we are experienced business litigators and will fiercely advocate your interests.

About the Author

Jared E. Holland

Senior Partner


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