How to File LLC Articles of Organization in Arizona?
When forming a limited liability company in Arizona, the Articles of Organization are the primary document that needs to be filed since they legally establish the business entity with the state.
As a Mergers and Acquisitions specialist who has assisted several individuals and businesses form LLCs and joint organizations, I understand the importance of filing one and the process it involves.
Together with LLC experts in the state, we'll walk you through the steps, requirements, and important considerations for filing Arizona’s Articles of Organization.
Quick Summary
- To file LLC Articles of Organization in Arizona, complete the corresponding form and submit it to the Arizona Corporation Commission.
- The Articles of Organization must include all accurate information and complete details that pertain to your company.
- Arizona has a vibrant business landscape, with, according to the SBA, 650,151 small businesses making up 99.5% of the state's total businesses, highlighting the importance of unique LLC naming and compliance.
- For convenient and efficient filing, I prefer applying online and availing of the expedited processing service.
Steps to Filing Articles of Organization for Arizona LLC
Here are the steps you’ll follow to file Arizona LLC Articles of Organization:
1. Select a Name for your LLC
Choose and verify an available name for your LLC. It should reflect the nature of the company's business and conform to Arizona's naming guidelines.
Given Arizona's vibrant business landscape, where, as per the SBA, 650,151 small businesses represent 99.5% of the state's total business population, ensuring your LLC’s name is unique and compliant with state regulations is not just a formality but a necessity to stand out and thrive [1].
2. Determine the Management Structure
Determine whether your company will be collectively managed by the members or run by a business professional or managerial service.
For new business owners, I encourage them to employ the services of a professional, at least during the first year of their existence.
3. Appoint a Registered Agent
Appoint a member, a registered agent, or a qualified individual to act as a statutory agent for your company. The Arizona registered agent must have a physical address in the state and be available during regular business hours [2].
4. Accomplish the Articles Of Organization Forms
Complete the forms and provide accurate information and complete details about the company:
- Entity Name: The name of your LLC must be unique and distinguishable. The name must comply with the Arizona Corporation Commission and include the required designations "LLC" or "L.L.C.” [3]. Then apply to reserve an Arizona limited liability company name.
- Address: Provide the physical address where your LLC's primary office or place of business is located. This address will be used for official correspondence.
- Purpose: The business purpose indicates the primary reason why your limited liability company was formed.
- Registered agent: Provide the name of your LLC statutory agent who will conduct service of process and receive documents on behalf of your company.
- Members: The document should include the names and addresses of all LLC members.
- Management structure: Indicate whether the LLC will be managed by the members or employ an external manager or company, and provide their information details.
- Duration: If applicable, specify the anticipated duration of the company. In my experience, some limited liability companies are formed to serve a time-bound purpose and are usually dissolved voluntarily once accomplished.
- Signature: The document must be signed by at least one member or an authorized representative, also referred to as the responsible party. Take note that the responsible party must be an individual and not an entity.
"When you affix your signature to the Articles of Organization, you are affirming, under the threat of legal consequences, that every detail in your submission is accurate and truthful."
- Jon Morgan, Co-Founder & Chief Editor of Venture Smarter
5. File the Articles of Organization
Once you have completed the forms, you can file the document with the Arizona Corporation Commission online or by mail. Be sure to include the \$50 filing fee to avoid any delays with the processing of the application.
The ACC offers and accepts expedited filing services made online, by fax, and by walk-in. Same-day processing costs \$200, while next-day turnaround is priced at \$100 [4].
I always file online and use expedited service since it is more convenient and less time-consuming.
Post-Filing Requirements
Once you have filed your LLC Articles of Organization in Arizona and the company has been officially registered to operate, your LLC has to create an operating agreement, obtain an EIN, open a bank account, and apply for licensing and permits.
1. Create An Operating Agreement
As much as the ACC does not require your LLC to have an operating agreement, it is highly recommended that you draft one.
Considering the dynamic growth where employment in Arizona has grown at an annualized rate of 2.7% over the last five years, significantly outpacing the national average of 1.2%, according to Ibis World, drafting a detailed operating agreement becomes crucial to navigate and manage the evolving business and workforce requirements effectively [5].
The operating agreement outlines the general structure of your LLC and enumerates the bylaws of your company. It includes the management system, members' rights, voting requirements, distribution of profits and losses, as well as legal and financial matters.
I inform clients that without the document, state laws automatically apply.
2. Get An EIN
A Federal Employer Identification Number is a nine-digit number that the Internal Revenue Service uses to identify your company. Apply and obtain an EIN online through the IRS website free of charge [6].
An EIN is necessary to open business bank accounts, hire employees, apply for loans, and enter into contracts.
3. Open A Business Bank Account
With an EIN, you can open an LLC bank account. This will make it easier for your company to collect funds, pay bills, and track your transactions.
The only requirement is that the name on the account match the LLC's name exactly.
I prioritize opening a business bank account right after launching a new LLC to separate the finances of the business from my personal assets.
4. Get Licenses And Permits
Depending on the specific nature and location of your LLC's business, it may be necessary to apply for and obtain licenses and permits to operate legally.
To determine if your line of business is required to obtain licenses and permits, verify with the city or county office in which you plan to operate the LLC.
Related Articles:
- How Much Does an LLC Cost in Arizona
- How Long Does It Take For An LLC To Be Approved in Arizona
- Top Arizona LLC Formation Services
FAQs
Do Articles of Organization Need to Be Published in Arizona?
Articles of Organization need to be published in Arizona. The ACC will provide information on how to publish the document.
How Do I Know If My LLC Has Been Approved in Arizona?
You can know if your LLC has been approved in Arizona by searching for your business name in the ACC's database.
References:
- https://advocacy.sba.gov/wp-content/uploads/2023/11/2023-Small-Business-Economic-Profile-AZ.pdf
- https://www.jacksonwhitelaw.com/az-small-business-representation/arizona-statutory-agent/
- https://azcc.gov/corporations/naming-policy
- https://www.azcc.gov/corporations/same-day-next-day-services
- https://www.ibisworld.com/united-states/economic-profiles/arizona/
- https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
