How to Start a Limited Liability Company (LLC) in Scottsdale, Arizona
A Limited Liability Company is a form of a private limited company in the US. Creating an LLC in Scottsdale is quite a simple process. Just by following the few simple steps mentioned below and you can create an LLC.
Step 1: Selecting a Name for Your LLC business
Choose a good name for the new company. The name should be unique (no other business should have the same name in Arizona). Arizona Corporation Commission verifies the uniqueness of the names by comparing them with their database. The name must have either the word “Limited Liability Company” or “LLC” or “LC” Abbreviations. After filing name will be reserved for 120 days. Filing will be done online or by postal mail. For mail filing fee of LLC is $10, for online $45($10 for filing and $35 for expediting the process).
To do business with the outside world, it’s not compulsory to use LLC’s official legal name that is registered in your Articles of Organization. A trade name can be assigned, known as DBA (Doing Business as). This can be registered for $10. This registration is not mandatory but this will alert others that the name is in use.
Step 2: Appoint a Registered Regulatory Agent:
Having a registered/ statutory agent is a must for LLC. That individual/ entity is responsible for the acceptance of legal documents on behalf of the LLC. The agent can be either:
- An individual, permanent, or full-timer Arizona resident.
- An LLC or a domestic corporation.
- Authorized LLC or a foreign corporation.
For the statutory, it is mandatory to have a physical street address. Agent must accept the appointment in written form and submit it with the Articles of Organization.
Step 3: Filing the LLC documents in Arizona Articles of Organization:
For forming an LLC Scottsdale, it is necessary to file the articles of Organization with the Arizona Corporation Commission.
The articles must include the following:
- Checked box, clearly indicating type of LLC (regular or professional),
- Details of services for professional (if applicable),
- Details of the statutory agent,
- LLC’s address,
- LLC’s type of management (member managed or manager managed),
- Sign and date of LLC’s organizer.
They can be done either online or you can download the Articles of Organization form from their website and post it, including the Statutory Agent Acceptance form
Step 4: Creating the Operating Agreement for LLC:
This is not a requirement but advisable. It’s an internal document this shows how the LLC will run. Rights and responsibilities of all employees, including members and managers, along with how LLC will be managed. If this document is not submitted, the state LLC Law will be applied to your LLC’s operations. If created, there is no need to file it with the Articles of Organization.
Step 5: Applying for an EIN (Employee Identification Number):
After forming your new LLC with Corporation Commission, the next step will be to register with the federal government and to get an EIN or FEIN (Federal Employer Identification Number). It is similar to your company’s Social Security number. It allows the LLC to hire employees, pay taxes, and apply for a bank account for your business.
Step 6: Complete the Requirements of Arizona LLC Publication:
Publication of an LLC is the final step to creating an LLC. This comes after LLC’s Articles of Organization are approved by the Corporations Commission. There is no need for publication on paper for LLCs that are based in Maricopa County or Pima County; they are updated on Corporations Commission websites and regarded as published. For the LLCs based in other counties than the above two, a notice needs to be published for the formation of LLC within 60 days of approval. If failed to publish, the LLC may be dissolved. LLC’s formation must be published in one of the approved newspapers.
The notice must have:
- LLC name and address,
- LLC’s statutory agent’s name and address
- Management type of LLC (member-managed or manager-managed)
- Details of all employees (names and addresses)
After your three publications consecutively, you will receive a Publication Affidavit from newspaper, proving that the LLC you published has met the requirement of publication. Keep this affidavit safe. If you are considering starting an LLC, it is imperative that you follow all the steps.