How to Start an LLC in Arizona

Step 1: Name Your Arizona LLC

Choosing a company name is the first and most important step in opening an LLC in Arizona. Be sure to choose a name that complies with Arizona naming requirements and is easily searchable by potential clients.

1. Follow the naming guidelines:

• Your name must include “limited liability company” or one of its abbreviations (LLC or L.L.C.).
• Your name cannot include words that could confuse your Arizona LLC with a government agency (e.g., FBI, Treasury, State Department, etc.).
• Restricted words (e.g., Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your Arizona LLC.
• Your name must be distinguishable from any other Arizona limited liability company, corporation, limited liability partnership, limited partnership, or trade name.

For more information, check out the Arizona Corporation Commission.

2. Is the name available in Arizona? Make sure the name you want isn't already taken by doing a name search on the Arizona eCorp website.

To learn more about searching for an Arizona LLC name, read our full guide.

3. Is the URL available? We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

We reviewed and ranked the best LLC services. Find out which is best for you.

Step 2: Choose a Statutory Agent in Arizona

You are required to nominate an Arizona statutory agent for your LLC. A statutory agent is more commonly known as a registered agent in other states.

What is a statutory agent? A statutory agent is an individual or business entity responsible for receiving notice of lawsuits on behalf of your business. Think of your statutory agent as your business's point of contact with the state.

Who can be a statutory agent? A statutory agent must be a resident of Arizona or a corporation, such as a registered agent service, authorized to transact business in Arizona. You may elect an individual within the company, including yourself.

Your registered agent must be at the business address or another physical street address within Arizona during regular business hours.

Upon appointment, your registered agent must complete the Statutory Agent Acceptance Form when you file your Articles of Organization.

Step 3: File the Arizona LLC Articles of Organization

To register your Arizona LLC, you'll need to file the following forms with the Arizona Corporation Commission:

• Form L010: Articles of Organization
• Form M002: Statutory Agent Acceptance
• Form L041: Member Structure Attachment or Form L040: Manager Structure Attachment
• Cover Sheet

You can apply online, by mail, or in person.

Now is a good time to determine whether your LLC will be member-managed vs. manager-managed.

For help with completing the form, visit our Arizona Articles of Organization guide.

If you’re expanding your existing LLC to the state of Arizona, you will need to form a foreign LLC.

Step 4: Complete Arizona LLC Publication Requirement

What is Arizona's LLC publication requirement? Arizona requires newly formed LLCs to publish a Notice of LLC Formation for three consecutive weeks in an approved newspaper in the county of the LLC’s principal office. This must be done within 60 days of formation.

Exceptions: Businesses whose principal address is in either Maricopa or Pima counties do not have to publish a Notice of LLC Formation.

What does my Notice of LLC Formation need to include? You will need to publish the following information:

• Your LLC's name
• The name and street address of your Statutory Agent
• The address of the LLC's principal place of business (if different from that of the Statutory Agent)
• Whether your LLC is member-managed or manager-managed
• The name(s) and address(es) of either your LLC manager or each member of your LLC

Read our complete guide for Arizona LLC publication requirements to learn more.

Step 5: Create an Arizona LLC Operating Agreement

An operating agreement is not required for an Arizona LLC, but having one is a good practice.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

Read our Arizona LLC operating agreement guide for more information on operating agreements.

Step 6: Get an Arizona LLC EIN

You can get an Employer Identification Number (EIN), also known as the Federal Employer Identification Number or Federal Tax Identification Number, from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.

Why do I need an EIN? An EIN number is required for the following:

• To open a business bank account for the company
• For federal and state tax purposes
• To hire employees for the company

Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to get an EIN. Learn more here.

Step 7: Keep Your Company Compliant

Arizona LLC Business Licenses & Permits

You must comply with federal, state, and local government regulations to operate your LLC. Fees and requirements for licenses and permits will vary depending on what sort of business license you need.

Find out how to get your LLC's business licenses and permits with our Arizona Business License guide.

Arizona LLC Tax Filing Requirements

It's essential to stay up to date on Arizona LLC taxes.

Depending on the nature of your business, you may be required to register for one or more forms of tax:

Sales Tax

If you sell a physical product, you must typically register for an Arizona Transaction Privilege Tax (TPT) License. Referred to as a sales tax in most places, this is a tax on vendors for the privilege of doing business in Arizona.

The Arizona Department of Revenue collects the tax for the counties and cities, but rates will vary based on the business type and location.

Employer Taxes

If hiring employees, you must register for both Unemployment Insurance Tax and Employee Withholding Tax with the Arizona Department of Revenue.

Income Tax

State
Arizona has a flat individual income tax rate of 2.5%

State tax returns are due each year by April 18. To calculate your tax or determine your tax bracket, visit the Arizona Department of Revenue website. 

Federal
You’ll also need to report your federal income tax using either Form 1065 (multi-member LLC) or Form 1040 Schedule C (single-member LLC).

Hiring Employees in Arizona

If you plan to hire employees for your Arizona LLC, stay compliant with the law by following these steps:

• Verify that new employees can work in the US
• Report employees as "new hires" to the state
• Provide workers' compensation insurance for employees
• Withhold employee taxes
• Print workplace compliance posters and place them in visible areas of your workspace

You can find out more from the Industrial Commission of Arizona and the Arizona Department of Economic Security.

Common Questions About Arizona LLCs

Arizona Business Resources

Get Help Starting a Business in Arizona

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State of Arizona Quick Links

• Arizona State Government Corporation Division
• Contact the Corporations Division
• Arizona LLC Statutes