Frequently Asked Questions About
Starting an Arizona LLC

There are a few different options when it comes to forming a business in Arizona. From a legal perspective, there are three main types of Arizona for-profit business entities: LLCs, S Corporations or C Corporations. For many entrepreneurs, we believe an LLC provides the right ratio of liability protection and ease of administration.

In order to form your LLC in the state of Arizona, there are some minimum requirements you must meet. These are a completed set of Articles of Organization, a business name and a fee you pay to the Arizona Corporation Commission. We recommend taking some additional steps before formally starting your LLC:

• Research your target market to make sure there’s a demand for the products and services you provide.
• Read industry guides to give you a starting point in your niche.
• Create a comprehensive business plan that defines the most important aspects of your Arizona business.
• Write an Operating Agreement that covers how you will run your LLC.

After you’ve created your Arizona LLC, you will also need to review your business license requirements, understand ongoing filing needs, set up a separate business bank account and get an accountant.

In Arizona, you register a business by completing and filing your Articles of Organization with the Arizona Corporation Commission. You will need to gather information about your business, fill out the form and send it to the Arizona Corporation Commission with your filing fee. This will legally form your LLC in Arizona.

You can file your Articles of Organization on the Corporation Commission website or mail it in. Alternatively, Incfile can guide you through every step of the process by getting details from you and filing the form on your behalf — for free! There’s no additional charge for our basic LLC filing service, so all you need to do is pay the Arizona state filing fee.

At the time of writing the fee charged by the Arizona Corporation Commission is $50. You can always check the latest Arizona filing fees here. You can also pay an additional $35-$200 for expedited filing through Incfile, which will create your LLC faster. The amount of the expedited fee is dependent on how quickly you want your filing processed. Some LLC filing services do charge you extra to prepare and submit your filing documents, but at Incfile, we do this for free — so you only pay the state fee.

Once you’ve gathered all of your information together and filed your Articles of Organization (or had Incfile do it for you), it can take 14-16 business days for the Arizona Corporations Commission to legally create your LLC. If you pay an additional $35, $100, $200, or $400 expedited fee, your LLC can be formed in as little as 3-5 business days, the next business day, the same day, or within 2 hours, respectively.

The name of your Arizona LLC needs to be unique, so you’ll need to ensure that it’s not already being used by another business. You can do that via the Arizona Corporations Commission website, or by using our fast and simple Business Name Search tool.

There are a few ways to register your Arizona LLC name.

• If you’re starting a new business and your business name is unique in Arizona and meets state naming rules, you simply include it in your Articles of Organization.
• If you want to change the legal name of your business, file Articles of Amendment with the Arizona Corporations Commission.
• f you just want to do business under a different name, file a Trade Name Application with the Arizona Corporations Commission, or have Incfile complete it on your behalf.

If you want to prevent people from using your business name across the U.S., you can file a trademark for the name. We can help.

In other states, the formal documents that you file to form a corporation or LLC might be known as Articles of Incorporation. In Arizona, this document is called your Articles of Organization, and it performs the same functions as the Articles of Incorporation.

Yes, the state of Arizona requires new businesses to publish a Notice of LLC Formation which must be published in a newspaper approved by the Arizona Corporations Commission, and circulated in the county where the LLC’s principal office will be located.

No, the State of Arizona does not allow for the formation of Series LLCs within the state. A Series LLC is a special type of LLC where you create one “overall” business and then have individual, series LLCs within it, each counted as separate legal entities.

Yes, all legal business entities in Arizona, including LLCs, must have a Registered Agent at all times. Here at Incfile, we provide a free Arizona Registered Agent service for the first year if you file through us.

If you wish to change your Arizona Registered Agent you can do so by filing a Statement of Change with the Arizona Corporations Commission. Here at Incfile, we provide a free Arizona Registered Agent service for the first year if you file through us. If you’ve been using a different Registered Agent and want to switch to Incfile, we’ll file the Statement of Change on your behalf.

If you need to know the Registered Agent of a specific Arizona business, you can perform an Arizona Registered Agent search within the state's business database.

As an LLC, any business profits you earn will be reported on your personal 1040 filing and reported and taxed as “pass-through” income. You will typically need to pay:

• Self-employment or payroll tax on all business profits
• Federal income tax on profits after you meet your tax-free allowance
• Sales tax for selling taxable products and services

Arizona charges a 5.6 percent state sales and use tax (referred to as transaction privilege tax or TPT) on all retail sales, leases and rentals of most goods. You may also need to pay sales tax if you provide a taxable service. You can find more information regarding TPT here.

If your business is selling a product or engaging in a service subject to TPT, you will need to apply for a TPT License with the Arizona Department of Revenue. You can complete this process online.

The base rate for Arizona sales tax (TPT) is 5.6 percent, and there may be additional sales tax depending on your region, county or city. Once you know your overall sales tax amount, calculate the value of all your taxable products and services. Then, multiply that by your sales tax rate to understand how much you will need to pay.

Once your LLC’s TPT License application is approved, you will receive information regarding how often you must file a tax return and pay sales taxes (TPT). Returns and payments may be due monthly, quarterly or annually.

Some businesses in Arizona will need to pay a corporate franchise tax, however it does not apply to LLCs unless your LLC is treated as a C Corporation for tax purposes.

If you've formed a business in Arizona and would like to remain in operation and compliance with the state, you'll likely need some type of business license to do so. The types of business licenses you need will vary depending on your type of business, industry, location and various other factors. We can research the types of business licenses you might need for you.