How to Form an LLC in Arizona FAQ (2024)

by Arizona LLC attorneys Richard Keyt and his son former CPA Richard C. Keyt who have formed 9,000+ Arizona LLCs and have 234 five star Google reviews and a total of 356 five star online reviews.  We want to form your Arizona LLC or prepare a new law compliant Operating Agreement for an existing Arizona LLC.

There are three ways to start an LLC in Arizona. The three ways are:

• Do-It-Yourself. If you want to form an Arizona LLC yourself read Richard Keyt’s article called “Arizona LLC Formation Online Checklist (10 Easy Steps) 2023.” This article explains with illustrations each of the ten steps involved in forming a new LLC or PLLC online in 10 – 15 minutes using the Arizona Corporation Commission’s ecorp online system.  The end result is you have an Arizona LLC and a one page piece of paper called the “Articles of Organization,” but you don’t know anything you need to know about operating the LLC and complying with Arizona LLC law.

• Hire Arizona LLC attorney Richard Keyt who has formed 9,000+ Arizona LLCs and who has 234 five star Google reviews and a total of 356 five star online reviews. Richard has three LLC packages: the $497 Bronze, the $897 Silver & the $1,397 Gold for people who want to keep their name and address off the public records of the Arizona Corporation Commission.  All you need to do to hire Richard is call him at 480-664-7478 if you have questions or complete his online LLC formation questionnaire and pay the fee with your credit card.

• Hire Somebody Who Lacks the Experience & Five Star Reviews as Richard Keyt.  Hire a document preparer or an attorney who lacks the Arizona LLC knowledge and experience of Richard Keyt and who doesn’t provide as many services as he provides. If you are considering hiring somebody other than Richard Keyt to form your LLC or PLLC compare what that person offers to what you will get if Richard Keyt forms your LLC.

Filing Fee

If you form an Arizona LLC yourself online the cost to start the LLC is $50, which is the regular filing fee paid to the Arizona Corporation Commission. If you pay the $50 regular filing fee the Arizona Corporation Commission (the “ACC”) will approve or reject your LLC’s Articles of Organization approximately 30 days after you file the Articles of Organization with the ACC.

Most banks will not open a bank account for a new LLC until after the ACC approves its Articles of Organization. If you can’t wait a month to open a bank account then pay the $85 expedited filing fee instead of the $50 regular filing fee because the ACC will approve or reject the Articles of Organization approximately one week after filing.

See the Arizona Corporation Commission’s current LLC processing times.

Newspaper Publication (Maybe)

If the address of the LLC’s statutory agent is not in Maricopa County or Pima County the LLC must publish a notice of publication in an Arizona Corporation Commission approved newspaper located in the county in which the LLC’s statutory agent is located. The cost to publish depends on the newspaper, but expect to pay $60 – $300 if you have to publish.

See the ACC’s list of approved newspapers.

The problem with forming an Arizona LLC yourself is you don’t get anything except a piece of paper. See what you get when you form an Arizona LLC online. Compare that one page piece of paper with the many services and benefits we give people who hire us to form their LLC Arizona.

How to Form an LLC in Arizona Yourself

If you want to form an Arizona LLC yourself learn how to do it by reading my article called “How to Form an LLC in Arizona in 10 Minutes Online.”

The time to form an Arizona LLC or PLLC depends on which formation method you use. The four ways you can form an Arizona LLC or a PLLC and the time it takes are:

• Same Day Filing and Approval if You Hire Richard Keyt to Form Your LLC.  If you want your LLC or PLLC started and approved by the Arizona Corporation Commission today then hire Arizona LLC attorney Richard Keyt to form it.  Richard has formed 9,000+ Arizona LLCs and who has 234 five star Google reviews and a total of 356 five star online reviews. Richard’s three LLC packages are: the $497 Bronze, the $897 Silver & the $1,397 Gold for people who want to keep their name and address off the public records of the Arizona Corporation Commission.  To hire Richard call him at 480-664-7478 if you have questions or complete his online LLC formation questionnaire and pay the fee with your credit card.

• 5 – 7 business days if you pay the $85 expedited filing fee when you file the LLC’s paper Articles of Organization with the Arizona Corporation Commission.  See the Arizona Corporation Commission’s current LLC processing times.

• 15 – 17 business days if you pay the $50 regular filing fee when you file the LLC’s paper Articles of Organization with the Arizona Corporation Commission.

Arizona Revised Statutes Section 29-3201.G provides that all new Arizona LLCs and PLLCs whose statutory agent’s address is in Maricopa County or Pima County do not have to publish anything in a newspaper. All new Arizona LLCs and PLLCs whose statutory agent’s address is not in one of those counties must publish a notice of publication in an Arizona Corporation Commission approved newspaper located in the county in which the LLC’s statutory agent is located. The cost to publish depends on the newspaper, but expect to pay $60 – $300 if you have to publish.

See the ACC’s list of approved newspapers.

Although Arizona Revised Statutes Section 29-3201.G provides that all new Arizona LLCs and PLLCs whose statutory agent’s address is not in Maricopa County or Pima County must publish a notice of publication in an Arizona Corporation Commission approved newspaper in the county in which the statutory agent is located Arizona LLC law does not state the consequence of failing to publish properly.

In forming 9,000+ Arizona LLCs since 1992 I have never heard of the Arizona Corporation Commission or a court rule that an Arizona LLC or PLLC approved by the ACC that failed to satisfy the publication requirement was not validly formed or should suffer any consequence of not publishing.

Yes. You can start an LLC yourself in 10 – 15 minutes by following my detailed step by step instructions in my article called “How to Form an LLC in Arizona in 10 Minutes Online.” This article explains with illustrations each of the steps necessary to form an LLC in Arizona online using the Arizona Corporation Commission’s ecorp online LLC creation system.

Arizona has three types of business licenses, which are: (i) business, (ii) regulatory (professional/special), and (iii) transaction privilege tax (TPT, aka sales tax).  Whether an Arizona LLC or PLLC needs one or more Arizona licenses depends on what the company does or will do.  Many company activities do not require a license of any type.  To determine if your LLC needs any type of license you will need to research the issue.  The first place to start your research is the Arizona Commerce Authority’s checklist called “I am ready to start my business in Arizona.”

If the LLC will sell products or engage in certain types of activities it must obtain a transaction privilege tax license also called a TPT license or a sales tax license.  To learn more about TPT licenses see the Arizona Department of Revenue’s TPT web page for detailed information about Arizona’s TPT licensing.  See also the Arizona Department of Revenue’s Reporting Guide for for TPT-related guidance and resources.

Businesses that perform the following activities are subject to TPT and must obtain a TPT license, collect sales tax and pay the sales tax to the Arizona Department of Revenue:

• retail sales
• restaurants/bars
• hotel/motel (transient lodging)
• commercial lease
• amusements
• personal property rentals
• contracting
• severance (metal mining)
• transporting
• nonmetal mining
• job printing
• publishing
• utilities
• telecommunications
• private (rail) car

Additionally, Arizona purchasers buying from out-of-state retailers not registered to collect use tax must register with the department.

Some companies may be required to get regulatory licenses or permits if they engage in regulated business activities such as activities that affect health, safety or the environment.  For more on these types of licenses and permits see the websites of the Arizona Department of Environmental Quality or the Arizona Department of Health Services.

Local jurisdictions such as cities and counties may also have license or permit requirements depending on where the LLC is doing business or located.  Go to the website of the city and county in which your LLC is located or in which it will do business to determine if it needs a city or county license or permit.

There are two steps required to form an LLC or PLLC in Arizona.  The steps are:

1. Submit a document called “Articles of Organization” to the Arizona Corporation Commission for its review and approval.

2. The Arizona Corporation Commission approves the submitted Articles of Organization.

When the ACC approves the Articles of Organization the approval is retroactive to the date on which the Articles of Organization were received by the ACC unless the Articles provide for a later formation date.

The time to complete steps 1 and 2 depends on whether you pay the $50 regular filing fee or the $85 expedited filing fee.

One Month Review Period When You Pay the $50 Regular Filing Fee

If you pay the $50 regular filing fee the Arizona Corporation Commission will review and approve or reject your Articles of Organization approximately 30 days after you submit the document to the ACC.  See the ACC’s current document review times report.

5 – 7 Business Days Review Period When You Pay the $85 Expedited Filing Fee & Submit Paper Articles of Organization

If you pay the $85 regular filing fee and submit paper Articles of Organization to the Arizona Corporation Commission the ACC will review and approve or reject your Articles of Organization approximately 5 – 7 business days after the ACC receives the Articles of Organization.  See the ACC’s current document review times report.

Instant Review Period When You Pay the $85 Expedited Filing Fee & Submit the Articles of Organization Online

If you pay the $85 regular filing fee and submit the Articles of Organization to the Arizona Corporation Commission online using its eCorp filing system the ACC will approve your Articles of Organization immediately when the statutory agent accepts the appointment as statutory agent. It’s possible to submit the Articles of Organization online and have it approved in ten minutes.

To learn how to form an LLC in Arizona in ten minutes read my article called “How to Form an LLC in Arizona Online in 10 Minutes.”

LLCs and PLLCs are taxed for federal income tax purposes one of four possible ways.  The four ways are:

1. If the company has only one member, the default federal income tax method is sole proprietorship.  The company does not file a federal income tax return.  The income and deductions arising from the company’s activities go on the member’s IRS form 1040, schedule C.

2. If the company has two or more members, the default federal income tax method is partnership.  The company must file a federal income tax partnership tax return on IRS form 1065.  The members get an IRS form K-1 and report the income and deductions on the member’s federal income tax return.

3. The company may file an IRS form 8832 and elect to be taxed as a C corporation for federal income tax returns.  If the company elects to be taxed as a C corporation the company must file a federal income tax return on IRS form 1120.  The company pays federal income tax on its net income.

4.  If eligible, the members can file an IRS form 2553 and elect to have the company taxed as an S corporation for federal income tax purposes.  The election to be taxed as an S corporation must be made within the first 75 days after the company is formed or within the first 2.5 months of the beginning of each calendar year.  When taxed as an S corporation the company files a tax return every year on IRS form 1120S, but the company does not pay federal income tax.  The net income and deductions of the company are put on an IRS form K-1 and reported by the members on their federal income tax returns.  Income and deductions for multi-member LLCs and PLLCs are passed to each member based on the member’s percentage interest in the company.

To learn more about the four ways LLCs and PLLCs are taxed for federal income tax purposes read Richard C. Keyt’s article called “How are LLCs Taxed?“

How an LLC is taxed in Arizona depends on how it is taxed for federal income tax purposes.  LLCs and PLLCs can be taxed one of the following four ways for federal income tax purposes:

• sole proprietorship
• partnership
• S corporation
• C corporation

LLCs & PLLCs Taxed as Sole Proprietorships

If the LLC or PLLC is taxed as a sole proprietorship or disregarded entity for federal income tax purposes the company does not file a federal or Arizona income tax return.  All income, deductions and other tax items are entered in the owner’s federal and Arizona income tax returns.

LLCs & PLLCs Taxed as Partnerships

If the LLC or PLLC is taxed as a partnership for federal income tax purposes and files an IRS form 1065 then the company files an Arizona Department of Revenue form 165 Partnership Income Tax Return. Arizona form 165 is due by the 15th day of the fourth month after the close of the company’s tax year.  Companies taxed as partnerships should complete three copies of each Arizona Department of Revenue form 165 Schedule K-1 or Schedule K-1(NR) for each member and file a copy of each member’s completed Schedule K-1 or Schedule K-1(NR) with the company’s Form 165. The company must give all members a copy of their completed Schedule K-1 or Schedule K-1(NR).  See the Arizona Department of Revenue’s partnership tax forms.

LLCs & PLLCs Taxed as  S Corporations

If the LLC or PLLC is taxed as an S corporation and files a federal income tax return on IRS form 1120S tax return then the company files an Arizona Department of Revenue form 120S Arizona Corporation Income Tax Return.  Arizona form 120S is due by the 15th day of the fourth month after the close of the company’s tax year.  Companies taxed as S corporations should complete three copies of each Arizona Department of Revenue form 120S Schedule K-1 or Schedule K-1(NR) for each member and file a copy of each member’s completed Schedule K-1 or Schedule K-1(NR) with the company’s Form 120S. The company must give all members a copy of their completed Schedule K-1 or Schedule K-1(NR).

LLCs & PLLCs Taxed as  C Corporations

If the LLC or PLLC is taxed as a C corporation and files a federal income tax return on IRS form 1120 tax return then the company files an Arizona Department of Revenue form 120 Arizona Corporation Income Tax Return.  Arizona form 120S is due by the 15th day of the fourth month after the close of the company’s tax year.

Arizona Department of Revenue State Income Tax Forms & Information

For more about Arizona tax returns for LLCs and PLLCs see the ADR’s form web page.  For information or help with Arizona tax returns call the Arizona Department of Revenue at (602) 255-3381 or (800) 352-4090 if calling from area codes 520 or 928.

You do not need a lawyer to set up an LLC.  If you want to form an LLC in Arizona yourself instead of paying a lawyer read Arizona LLC attorney Richard Keyt’s article called “How to Form an LLC in Arizona in 10 Minutes Online.”

If you form an LLC in Arizona yourself, this is what you get:

What You Get If Richard Keyt Forms Your LLC

Compare the one page piece of paper you get if you form an LLC in Arizona yourself to the 9, 15 and 20 services we give purchasers of our Bronze, Silver & Gold LLC packages.

Arizona’s LLC law does not require an Arizona LLC or PLLC to have an Operating Agreement signed by its members.  As an Arizona LLC attorney who has formed 9,000+ Arizona LLCs I recommend that all Arizona LLCs have an Operating Agreement.  See my article called “Major Damage When Arizona LLCs Lack a Well Written Operating Agreement.”

All the LLCs we form get a custom Operating Agreement that complies with Arizona’s LLC law.  To purchase an Operating Agreement for your existing Arizona LLC submit our Operating Agreement Preparation Questionnaire.

To hire us to form an LLC in Arizona complete our online LLC formation questionnaire.  See the contents and prices of our three LLC packages.

To hire us to prepare a new Arizona LLC law compliant Operating Agreement for your existing Arizona LLC complete our Operating Agreement Preparation Questionnaire.

Instead of completing our online form you can call Richard Keyt (the father) at 480-664-7478 or Richard C. Keyt (the son) at 480-664-7472 and give your information over the phone.