A limited liability company is a business structure that protects owners from personal liability for business debts while the profits and losses of the business are passed to the owners and reported on their personal tax returns.Many businesses can benefit from forming a limited liability company as this structure protects the owners from losing personal possessions due to business debt.As a single member or with other people, you can operate your company.Understanding the requirements in Arizona for forming a limited liability company will help you form it.
Step 1: Pick a business name.
The name of your business needs to include the words "limited liability company, or " limited company," or the abbreviations L.L.C."L.C."", "LLC," or "LC"Your business name cannot include any of the following words: association, "corporation," "incorporated," or any abbreviations of those words.If you can find the name of your business, that's great.If your business name includes any of the following words, you must seek approval from the Arizona Corporate Commission.
Step 2: Do you want to keep your business name?
It's a good idea to reserve your business name.For 120 days, you can reserve a name.If you need time to complete the rest of the paperwork, this is helpful.You have to pay $45 to reserve a name.You can either submit a paper application or reserve the entity name online.
Step 3: An operation agreement should be prepared.
It is good to have an operating agreement.The agreement outlines how the company will be run.The percentage of members' ownership, voting rights and responsibilities, powers and duties of the members and/or managers, and meeting schedules are essential elements of an operation agreement.Depending on the needs of the business, operation agreements can be modified.A written operation agreement is recommended by the Arizona Corporation Commission.5 to 20 pages is how long an operating agreement is.There are online examples.
Step 4: A statutory agent can be appointed.
A statutory agent is a person or entity that is responsible for accepting legal documents and lawsuit papers on behalf of the company.The statutory agent needs a valid Arizona street address.The statutory agent will receive official notices from the ACC.Private mailboxes are rented through a provider.These are not acceptable for Arizona.A statutory agent is someone who is authorized to conduct business in Arizona.The Statutory Agent must be different from the limited liability company.Statutory agents must be at least 18 years of age, be a full-time permanent resident of Arizona, and have a physical or street address.Statutory agents have to accept the appointment in writing.
Step 5: The articles of organization should be filed.
The Articles of Organization need to be submitted to the Arizona Corporation Commission.The articles must include the name and address of the limited liability company, as well as the managers and members' names and addresses.The articles cost $50.00 to file.You will need to pay an additional $35.00 if you want expedited processing.The Arizona Corporation Commission Corporate Filings Section can be reached at 1300 W. Washington St., Phoenix, Arizona 8500730 business days is how long regular processing takes.
Step 6: You need to apply for an employer identification number.
The Tax ID number is required for all new companies.Affirmative.The IRS issues your EIN.You will need to apply for an employer identification number.You can apply online, by phone, or by mail.To apply, visit www.irs.gov or call toll free.It is possible to apply for an EIN.
Step 7: Business licenses and tax documents are available.
If you sell a physical product that requires sales tax, you will need to register with the Arizona Department of Revenue.This is referred to as a Transaction Privilege Tax.You can apply online or download a paper application.If you don't know if you need a TPT, contact the Arizona Department of Revenue.
Step 8: You can open a business account.
You should separate your personal and business finances.You can open a different account for your limited liability company.You will need your Tax ID number to get a copy of the articles.Some banks will require that all members or managers of the company are on the account, while others will allow a single account owner.Check the requirements with the bank.The structure of your company will affect access to the bank account.Depending on the type of business, you may need additional permits.
Step 9: If you have to, publish your document.
You may be required to publish the document once your articles of organization have been approved.If you must publish, the ACC will let you know.Don't publish the document until your articles are approved.You will have to publish your business in the newspaper.There is a list of newspapers that meet the criteria.An Affidavit of Publication will be sent to you.You can either submit the affidavit for inclusion in the public record of your business or keep it for your records.