Number of days for ACC to review Articles filed on an expedited basis:

11

ACC is now reviewing documents filed on 6/22/09.

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You are here: Home  Arizona Law  Arizona LLC Library  How to Form an Arizona LLC

How to Form an Arizona Limited Liability Company

A Step by Step Guide For Forming an Arizona LLC

By Richard Keyt, an Arizona LLC attorney who has formed over 2,000+ Arizona LLCs.  See LLC client testimonials and the Arizona Republic newspaper's article about LLCs that quotes Rick extensively.

Rick has practiced law in Arizona since 1980.  He holds a masters degree (LL.M.) in tax law from the New York University School of Law.  Call Rick at 602-4953 extension 1 if you have questions about Arizona LLCs (no charge).

Phase 1 of an Arizona LLC formation is relatively simple.  To form an Arizona limited liability company, you merely:

Despite this relatively easy three-step process, there are a number of tasks the must be performed in conjunction with forming an Arizona limited liability company ("LLC").

Terminology Warning:  Beware of two common incorrect references to LLCs:

1. Arizona limited liability corporation or llc corporation:  There is no type of entity recognized by Arizona law called a "limited liability corporation."  Arizona law authorizes the creation of limited liability companies and corporations, but not the limited liability corporation.  The LLC and the corporation are two distinct types of entities expressly authorized by Arizona statutes. 

2. I want to form an S corporation:  There is no type of entity recognized by Arizona law called an S corporation.  The term "s corporation" refers to the method of federal income taxation selected by an entity, i.e., it is an entity that is eligible for and that has elected to be taxed under subchapter S of the Internal Revenue Code of 1986 (the federal tax law).  An LLC can be taxed as an "s corporation" by filing an IRS form 2553 timely, but the LLC always remains an LLC under Arizona law.

For a summary of the characteristics of the seven types of entities commonly used in Arizona to operate businesses and hold assets, see "Types of Entities for New Arizona Companies." 

LLC versus Corporation

Because people frequently ask me if they should form an LLC or a corporation, I wrote an article that details the many reasons why I recommend the limited liability company over the corporation.  See LLC vs Corporations: Which Type of Entity Should You Form?

Forming an AZ LLC

The following is a checklist and explanation from A to Z of how to form a limited liability company in Arizona.

1.  Select the Name of the Arizona LLC

a.  Trademarks & Service Marks

Finding a good name for your new Arizona limited liability company can sometimes be the most difficult piece of the formation puzzle.  Ideally, you want a name that: (i) will afford strong federal trademark protection, but will not infringe on anybody's trademark or service mark, (ii) will be easy for your customers to remember, (iii) will describe your products or services, and (iv) will allow you to obtain .com, .net., .org, .biz and .info domain names.  For information on obtaining domain names, see How to Obtain a Domain Name that Does Not Infringe on a Trademark.

One way to check if your desired company name will infringe on a federally registered trademark or service mark is to search your prospective name and variations thereof on the searchable database of the United States Patent & Trademark Office.

Unfortunately, obtaining a strong trademark that describes your product or services is frequently not possible.  These two goals are in conflict.  Most clients of trademark lawyers want a trademark that describes their products or services.  For example, if I have a bar and grill called Rick's Bar & Grill, it describes my business, but federal trademark law grants a lower level of protection to marks that are merely descriptive of the products or services.  People like descriptive trademarks because they are descriptive.  Trademark lawyers prefer marks that are arbitrary such as Apple® when used to identify computer products or fanciful marks such as Xerox® because these types of marks provide the highest level of trademark protection.  For more information about trademarks and service marks, see the KEYTLaw feature called "Trademarks & Service Marks."

b.  Arizona Corporation Commission Name Approval

When you have selected at least one possible company name, you should perform a Preliminary Name Search on the ACC's website to see if you can find any Arizona entities or tradenames that are exactly the same as or too similar to the name you have chosen for your LLC.  All Arizona LLC names must satisfy the requirements of Arizona Revised Statutes Section 29-602.

The Arizona Corporation Commission will not approve a proposed LLC name unless the proposed name is distinguishable from other names already on file with the Arizona Corporation Commission and the Secretary of State.  For an explanation of what makes a name distinguishable from another name, see the Arizona Corporation Commission Naming Standards, which has a list of the rules the ACC uses when reviewing proposed names.

2.  Prepare the Articles of Organization of the Arizona LLC

You must prepare your new company's Articles of Organization and have it signed by at least one person. The Articles of Organization must contain the following information:

See the ACC's sample form Articles of Organization (pdf) and related instructions.  This form is in .pdf format, which requires the Adobe® Acrobat® Reader® software.  You can download the software for free from Adobe®.

Why AZ LLC lawyer Richard Keyt Never Uses the Arizona Corporation Commission Two Page Fill in the Blanks Articles of Organization Form

AZ limited liability company attorney Richard Keyt always prepares custom drafted Articles of Organization using the Word form he created.  Here are the primary reasons Richard Keyt never uses the ACC's gross form Articles of Organization. 

1. The Articles of Organization is the fundamental document that creates your LLC.  You know what they say about first impressions.  The LLC's Articles of Organization is the primary document that makes a first impression of the LLC.  Third parties sometimes want to see the LLC's Articles of Organization.  For example, if you open a bank account in the name of the LLC or if the LLC applies for a bank loan, the banker will want a copy of the LLC's Articles of Organization.  Your LLC's Articles of Organization can make a good impression or a bad impression on the banker.  Compare the fill in the blanks Arizona Corporation Commission form Articles of Organization vs. professional looking custom Articles of Organization and ask which makes a better first impression on the third parties your LLC will deal with?

2. Richard Keyt's Articles of Organization contain provisions in the Section titled "Limitations on Company Action" that are not found in the Arizona Corporation Commission's two page fill in the blanks form.  This section contains provisions that Arizona LLC attorney Richard Keyt believes are important limitations on the ability of the LLC to engage in certain actions. 

3. The last section of Richard Keyt's Articles of Organization called "Springing Member" contains a provision that ties into a similar provision in Richard's do-it-yourself Operating Agreement.  The springing member provisions in the Articles of Organization and the Operating Agreement are especially important if the LLC has only one member and that member is a person.  These two provisions may avoid the termination of an LLC that is owned solely by one person if that person were to die.  Arizona law provides that if there is only one member of an Arizona LLC and that member is a person who dies, the LLC automatically terminates, i.e., ceases to exist. This could be a very bad thing!  The termination of an LLC could have adverse consequences to the LLC and the person or people who would inherit the interest of the last deceased member.  For example, the termination of the LLC could cause the recognition of income and incurrence of income taxes if the deemed distribution of assets of the LLC on its termination is a taxable event.  The springing member provisions in the Articles of Organization that tie into similar provisions in Richard Keyt's Operating Agreement allow the LLC to name a springing member who becomes a temporary member only if the last member were to die.  The sole purpose of the springing member is to prevent the termination of the LLC if the last member were to die.  The springing member does not have any power or rights to receive money or property form the LLC.

Purchase AZ LLC Lawyer Richard Keyt's Do-It-Yourself Custom Form Articles of Organization & Operating Agreement

Richard Keyt has prepared Articles of Organization and Operating Agreements for 2,000+ Arizona limited liability companies.  He sells his custom Arizona state specific Articles of Organization and Operating Agreement as downloadable and editable Word forms.  These llc forms are essentially the same documents Richard uses when he forms an Arizona LLC for a client.  Save $100 when you buy the Articles of Organization, Operating Agreement and AZ LLC Quick Start Guide for $193 at the same time.

3.  Select the Arizona LLC's Statutory Agent

Every Arizona limited liability company or LLC qualified to do business in Arizona must have and maintain a statutory agent located in Arizona.  The purpose of a statutory agent is to give notice to the public of a person or entity authorized by the company that can be served with legal documents as the agent of the company.  The statutory agent is the person or entity that can be served with a summons and complaint filed in a lawsuit.

The statutory agent must be one of the following:

The statutory agent must have an Arizona street address rather a post office box.

4.  Prepare a Cover Sheet

When you file the Articles of Organization with the ACC, you must also submit a completed cover sheet (pdf). 

Call 602-906-4953, ext. 1 NOW if you want an LLC to: (1) prevent creditors of your business or investment real estate from taking your personal assets, and (2) asset protect your personal assets from debts, liabilities and lawsuits.

5.  Pay the Filing Fee

When you submit your Articles of Organization, you must also pay the filing fee, which is $50. You can pay the fee with cash or your check. 

You may also pay an extra $35 for expedited review service.  I recommend that you pay the extra $35, which will cause the ACC to review your Articles of Organization within the shortest time period possible.  If you do not pay the extra $35 it could take up to a month for the ACC to approve or reject your Articles of Organization.  When the articles are approved, the date of approval reverts back to the date the articles were filed.  The problem with using regular review service rather than the expedited review, is that it can substantially reduce the time remaining to publish the Articles of Organization and deliver the affidavit of publication to the ACC.

6.  File the Articles of Organization with the ACC

When you are ready to file the Articles of Organization of your new Arizona LLC, hand deliver or mail the following to the ACC:

7. Where to File the Articles of Organization

File your Articles of Organization of your Arizona LLC, and pay the filing fee at either of the following ACC locations:

Phoenix office:  1300 W. Washington, 1st Floor, Phoenix, AZ 85007.

Tucson office:  400 W. Congress St., Tucson, AZ 85701

ACC offices are open Monday - Friday, 8:00 a.m. to 5:00 p.m., except holidays.  You may mail all the Articles of Organization and a check for the filing fee to either ACC office.  The ACC does not accept credit cards.

If You Do Not Hire KEYTLaw to Form Your AZ LLC, Give Yourself Peace of Mind and Purchase Our Quick Start Guide - Only Available from KEYTLaw.com

What you don't know about operating your Arizona LLC could cost you thousands of dollars or possibly risk a court "piercing the veil" and holding the members of the LLC liable for its debts.  Arizona business attorney Richard Keyt's in depth, Arizona specific 100+ page Arizona LLC Quick Start Guide is the Holy Grail about operating Arizona LLCs.  Merriam-Webster's dictionary defines "Holy Grail" as "an object that is sought after for its great significance," a term that aptly describes the AZ LLC Quick Start Guide. 

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This owner's manual for operating an Arizona LLC explains 75+ critical topics that affect Arizona LLCs.  See the five page Table of Contents and you will be amazed that so many important topics are explained in one convenient source.  Click here to purchase the Quick Start Guide now from our internet store for the incredibly low price of $99.  Ignorance of Arizona LLC law and how to operate your Arizona LLC could be very costly.

8.  Obtain a Copy of the Articles of Organization

It goes without saying that you should make a copy of the Articles of Organization of your Arizona LLC that you submit to the ACC and retain them in your company file.  I recommend that when you file your Articles of Organization, you submit an extra copy and ask the ACC to stamp the extra copy to show the date the ACC received the Articles of Organization.  This extra copy can be shown to other parties (such as a bank when you open a bank account) before you receive the final approved Articles of Organization from the ACC.

9.  Approval or Rejection of the Articles of Organization

After the ACC reviews the Articles of Organization of your new Arizona LLC, it will mail to the company's place of business a notice of approval or rejection of the Articles of Organization.  If the Articles of Organization were rejected, your company was created as of the date the articles were filed, but it terminated twenty days after the ACC notifies the filer of the articles of a defect and the articles are not brought into conformance.  The ACC will notify you in a letter why the articles were rejected.  You may then correct the problem and resubmit the Articles of Organization.  However, you will not be able to recover your filing fee if the ACC rejects your filing.

If your Articles of Organization were approved, the Arizona LLC was created ("born") as of the date the Articles of Organization were filed with the ACC (or a later date set forth in the articles). 

10.  Publish the Articles of Organization

Within sixty days after the date the Articles of Organization were filed with the ACC, you must publish a Notice for Publication for three consecutive publications in a newspaper of general circulation in the county of the company's known place of business in Arizona.  The notice of filing the Articles must contain the information required in Arizona Revised Statutes Section 29-632, subsection A, paragraphs 1, 2, 4 and 5. 

If you file the Articles of Organization on an expedited basis, you may wait to publish the Notice for Publication until the ACC approves the Articles of Organization to prevent wasting the publication costs if the articles are rejected.

See the ACC's list of Arizona newspapers of general circulation by county, which list also includes newspapers from which the ACC will not accept publications.  The cost to publish the Notice for Publication depends on the newspaper, the county in which the newspaper is located and the length of the Notice, but you should budget $55 - $85 if the known place of business is in Maricopa County. 

Publication cost will be greater if your company's known place of business is outside Maricopa County.  Caution:  The Yuma Daily Sun is the only ACC approved newspaper in Yuma County so it grossly over charges for legal publications, including a Notice for Publication.  In the past, this newspaper charged me three times more to publish in Yuma County than what I paid in Maricopa County for similar publication.

How to Avoid Being Over Charged by a non-Maricopa County Newspaper

To avoid excessive legal publication costs (perhaps as much as $100 or more) for a Notice of Publication, do the following:

1. Before filing the Articles of Organization, prepare question 2 of the Articles to list the LLC's known place of business in Maricopa County.

2. Publish the Notice of Publication in Maricopa County (hopefully using our convenient discount publication service - see below).

3. File a change of address form with the Arizona Corporation Commission to change the LLC's known place of business from Maricopa County to the desired address in the appropriate county.

Return the Affidavit of Publication to the ACC

Within ninety days after the date of filing the Articles of Organization, you must file with the ACC a notarized Affidavit of Publication evidencing the publication of the Notice for Publication as required by Arizona law.  Confirm with your newspaper that it will automatically as part of its publication service prepare and file the Affidavit of Publication with the ACC.  Instead of filing the Affidavit of Publication directly with the ACC, some newspapers mail the document to you and you must then send the Affidavit to the ACC before the ninety day deadline.  Make a tickler or calendar a reminder of the deadline if you must send the Affidavit to the ACC.

Failure to Comply with the Publication Requirements

If you fail to timely publish the Notice of Publication or fail to timely file the Affidavit of Publication with the Arizona Corporation Commission, the ACC may revoke the charter of the company, which causes it to die and cease to exist.

11.  Obtain a Federal Employer Identification Number

Most newly formed companies must obtain a federal employer identification number.  Banks require this ID number for bank accounts.  If the company will have employees and pay wages, it must file payroll tax returns and pay payroll taxes using the ID number.  A company obtains a federal ID number by completing IRS Form SS-4 (pdf), Application for Employer Identification Number, and filing it with the Internal Revenue Service.  See also the Instructions for Form SS-4 (pdf) and IRS Publication 1635 (pdf), Understanding Your EIN - Employer Identification Number.

You should apply for an EIN early enough to have your number when you need to open a bank account, file a tax return or make a tax deposit. You can get an EIN over the phone by calling the Tele-TIN phone number for your state, which for Arizona entities is 1-800-829-4933.  Before calling the IRS, fill in the IRS Form SS-4 as best you can because the IRS may ask you to refer to it while on the phone and may ask that you sign and mail or fax a copy of the form to the IRS within 24 hours.  The person making the call must be authorized to sign the form or be an authorized designee.

You may also obtain a federal EIN online in a matter of minutes from the IRS website.  After completing the IRS' online questionnaire, the IRS' website will immediately issue an EIN.  Online EINs are available 24/7 without the need to file any paper document with the IRS.  The online EIN is a provisional EIN, but it will be the permanent federal employer identification number for your business unless voided by the IRS.  The IRS may void an EIN obtained online if :  (i) the name and social security number of the principal officer do not match Social Security Administration records, or (ii) the business has already been assigned an EIN.  Keep a record of your application for an EIN.  Be sure to print your SS-4 application after the EIN is assigned and keep a paper copy for your records. You can do this by clicking the "Print Form" button after receiving your EIN.

Applications for a federal EIN for LLCs must provide the following information in the online Form SS-4: (i) the LLCs exact legal name in box 1 ending with LLC without punctuation, (ii) the type of entity for tax purposes in box 8a (i.e., will the LLC be taxed as a partnership, sole proprietorship, or corporation), and (iii) type the words single or multi member LLC in box 8a on the line called Other, but do not check the Other radio button.

Third parties may also request EINs via the internet on behalf of a taxpayer.  A third party who obtains an EIN for another party must retain a completed copy of the IRS Form SS-4 signed by the taxpayer and the signed statement authorizing the third party to file the online application.

If you prefer, you can fax a completed Form SS-4 to the appropriate service center (215-516-3990 for Arizona), and they will respond with a return fax in about one week.  If you do not include a return fax number, it will take about two weeks.  If you apply by mail, send your completed Form SS-4 at least four to five weeks before you need your EIN.

Note for Single Member LLCs:  A single-member LLC that intends to be taxed as a sole proprietorship does not need an EIN and generally should not file IRS Form SS-4.  Generally, the LLC should use the name and EIN of its owner for all federal tax purposes.  However, the reporting and payment of employment taxes for employees of the LLC may be made using the name and EIN of either the owner or the LLC.  If the LLC-applicant indicates in box 13 of IRS Form SS-4 that it has or expects to have employees the IRS will assign the single-member LLC its own EIN.

12.  Elect the LLC's Form of Federal Income Taxation

One of the major reasons to form a limited liability company is that the LLC may chose how it will be taxed for federal income tax purposes.  Subject to certain limitations, an LLC may be classified for federal income tax purposes as: (i) a sole proprietorship, (ii) a partnership, (iii) a C corporation, or (iv) an S corporation.  Whether an LLC can select a particular federal tax classification depends on the number and type of members.

A single member LLC may elect to be classified as a sole proprietorship, a C corporation or an S corporation.  Multi-member LLCs may elect to be taxed as a partnership, C corporation or S corporation.  The LLC, however, may not elect to be taxed as an S corporation unless it meets all requirements applicable to S corporations.  If the LLC does not elect its classification by filing IRS Form 8832 (pdf), the IRS assigns a default classification of partnership (for multi-member LLCs) or sole proprietorship (for single member LLCs).

Even thought it is owned by two members, an LLC that is owned solely by a husband and wife as community property may be taxed as a sole proprietorship or as a partnership.  The couple may elect either form of taxation.  IRS Revenue Procedure 2002-69 states that the IRS will accept the married couples' choice to be taxed as a sole proprietorship or as a partnership.

In general, the difference between being taxed as a corporation and being taxed as a partnership is that partnerships are not taxpaying entities and corporations (other than S corporations) are.  The profits, losses and other tax items of an LLC taxed as a partnership are passed to the members of the company prorata according to their ownership and included on the members' federal income tax returns.  By electing to be taxed as a partnership for federal income purposes, a multi-member company can avoid the double tax that can occur with a corporation when the corporation has taxable income.

The LLC may elect to be taxed as a partnership or as a corporation for federal tax purposes by filing IRS Form 8832 (pdf), Entity Classification Election.  For more information, see IRS Publication 542 (pdf), Corporations, and IRS Publication 541 (pdf), Partnerships. 

Before electing how your Arizona LLC will be taxed, you should consult with your accountant because the election will have significant economic consequences.  Facts and circumstances applicable to each new Arizona LLC will influence the taxation election that is best.  An erroneous tax election can be very expensive.

Call 602-906-4953, ext. 1 NOW if you want an LLC to: (1) prevent creditors of your business or investment real estate from taking your personal assets, and (2) asset protect your personal assets from debts, liabilities and lawsuits.

13.  Obtain Arizona Department of Revenue Identification Numbers & Transaction Privilege Tax Licenses

If your Arizona LLC will engage in an activity that is taxable under the Arizona transaction privilege tax statutes, it must apply for a transaction privilege tax license for each business location before engaging in business.  If the Arizona LLC will pay wages to employees, it must obtain an Arizona withholding number and an Arizona unemployment number.  To obtain a transaction privilege tax license, an Arizona withholding number or an Arizona unemployment number, the Arizona LLC must complete and file an Arizona Joint Tax Application with the Arizona Department of Revenue.  For licensing questions on transaction privilege or withholding call (602) 542-4576 or 1-800-634-6494 (from area codes 520 and 928).  For questions on unemployment tax call (602) 248-9396 or email the Arizona Department of Economic Security.

14.  Sign an Operating Agreement

When a company is owned by more than one member, LLC lawyers recommend that the members enter into an agreement called an "Operating Agreement."  This is an agreement that governs how the members will deal with their LLC ownership interests and important company matters.  Operating Agreements typically deal with the following types of issues:

The best and easiest time to adopt an Operating Agreement is when the company is formed.  I have seen too many sad member disputes that could have been avoided with a good Operating Agreement.  An Operating Agreement is like insurance, i.e., if you never need it, you don't miss it, but if you need it and don't have it, you may suffer greatly.

Caution:  If the members of an Arizona limited liability company do not adopt a written comprehensive Operating Agreement, their rights and obligations with respect to each other and the company will be as provided by the default provisions of Arizona law.  Trusting Arizona law to govern your limited liability company can have substantial unintended and adverse consequences.  For example, Arizona law provides that absent a written agreement to the contrary, all distributions of money and property from the company to the members must be made first in proportion to the amount of members' unreturned capital contributions and then equally to the members.  See A.R.S. § 29-703.B. 

Example of Unintended Consequences:  John and Mary form an Arizona LLC.  John contributes $10,000 to the capital of the company and Mary contributes nothing.  They agree orally that the will split the profits and distributions 75% to John and 25% to Mary.  If John and Mary do not document their agreement in writing, Arizona law provides that the members rights with respect to allocation of profits and distributions are as follows:

For the reasons why I strongly urge multi-member Arizona limited liability companies to put their agreements in writing and adopt a comprehensive Operating Agreement, see my article entitled "Arizona Limited Liability Company Operating Agreement FAQ."

KEYTLaw Operating Agreement Preparation Service

KEYTLaw prepares comprehensive Operating Agreements for Arizona limited liability companies for a fixed fee.  Our Operating Agreement preparation service includes initial consultations to determine members' desires and answer questions, preparation of a 80+ page Operating Agreement and, after delivery of the agreement, up to two hours of additional services in connection with answering questions about the agreement and modifying it as requested by the members.

If You Do Not Hire KEYTLaw to Form Your AZ LLC, Give Yourself Peace of Mind and Purchase Our Quick Start Guide - Only Available from KEYTLaw.com

What you don't know about operating your Arizona LLC could cost you thousands of dollars or possibly risk a court "piercing the veil" and holding the members of the LLC liable for its debts.  Arizona business attorney Richard Keyt's in depth, Arizona specific 100+ page Arizona LLC Quick Start Guide is the Holy Grail about operating Arizona LLCs.  Merriam-Webster's dictionary defines "Holy Grail" as "an object that is sought after for its great significance," a term that aptly describes the AZ LLC Quick Start Guide. 

How to Purchase the QSG

This owner's manual for operating an Arizona LLC explains 75+ critical topics that affect Arizona LLCs.  See the five page Table of Contents and you will be amazed that so many important topics are explained in one convenient source.  Click here to purchase the Quick Start Guide now from our internet store for the incredibly low price of $99.  Ignorance of Arizona LLC law and how to operate your Arizona LLC could be very costly.

16.  Hire ADP to Do the Payroll for Your Employees

If your company will have employees, it must: (i) calculate and withhold the proper federal and state income tax and FICA amounts from employees' wages, (ii) calculate and pay correct FICA and FUTA amounts to the federal government, (iii) calculate and pay state unemployment tax to the state government, (iv) calculate and pay before the due dates federal and state payroll tax deposits, and (v) prepare and file all federal and state payroll tax returns before the due dates, including, IRS forms W-2s and 1099s.  As a person who once created and owned a small law firm that had many employees, I know that complying with payroll tax laws is a nightmare unless you have an experienced service do it for you.  If you do not get payroll under control, it can be a very expensive disaster.

I recommend that Arizona companies with employees hire ADP for all payroll service needs.  For a free price quote and answer to questions about any of ADP's services, call my friend Molly Dean, District Manager of  ADP's Arizona Small Business Services at (480) 897-5817 or email her at Molly_Dean@adp.com.  Be sure to tell Molly that Richard Keyt referred you.

The small cost per employee for a good payroll service is well worth it when you consider what the services include.  I recommend that you hire ADP to do your payroll.  With over fifty years of experience in payroll processing and business services, ADP is the largest payroll service in the United States.  ADP pays one of every six employees in the USA every payday!  From punch in to paycheck, ADP offers a complete solution that helps you remain compliant and alleviates much of the administrative burden that comes with payroll processing, tax filing and time and attendance tracking.

Take a look at what ADP’s complete payroll solution has to offer: - A solution that allows you to enter your payroll data via phone, fax or the internet virtually anytime, anywhere.

ADP’s Payroll with Premium Tax & Labor Management solution will ease your administrative burden and help keep you in compliance with ever-changing tax laws and regulations.

ADP offers simple and economical yet comprehensive payroll services that save you time, provide reports to help you run your business better, and helps protect you from payroll tax penalties.  ADP services include:

You can submit employee information to ADP by phone, by fax, or over the internet on ADP's secure website.  The method you choose does not effect your cost.

The cost for ADP's economical services varies depending on number of employees, payroll frequency and the features you select.  For a free price quote and answer to questions about any of ADP's services, call my friend Molly Dean, District Manager of  ADP's Arizona Small Business Services at (480) 897-5817 or email her at Molly_Dean@adp.com.  Be sure to tell Molly that Richard Keyt referred you.

17.  Additional Considerations

In addition to the tasks set forth above, there are a lot of other business and legal issues to consider when forming a new company.  We recommend that everybody who forms an Arizona limited liability company consult with an Arizona licensed attorney who has experience forming and advising new Arizona LLCs.

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18.  Starting a New Business in Arizona

The following list contains links to web sites that have additional information about and resources related to starting a new business in Arizona:

See the testimonials from our happy LLC clients.

KEYTLaw LLC Formation Service

All Documents Prepared by an Attorney not by an uninsured nameless Document Preparer

Call 602-906-4953, ext. 1 NOW if you want an LLC to: (1) prevent creditors of your business or investment real estate from taking your personal assets, and (2) asset protect your personal assets from debts, liabilities and lawsuits.

Arizona LLC attorney Richard Keyt (practicing business law in Arizona since 1980) offers a comprehensive Arizona limited liability company formation service for a low total cost of $599, which includes the $85 Arizona Corporation Commission expedited filing fee and the newspaper publication cost.  See the 25 services and tasks listed below that we include with EVERY LLC we form.

We don't just fill out the Arizona Corporation Commission's ("ACC") two page fill in the blanks form Articles of Organization.  In fact, we don't use that bare bones document.  All of our clients get our custom drafted Member Enhanced^TM Articles of Organization that includes many provisions not found in the ACC's form Articles.  Our Articles of Organization contain provisions that coordinate with our Charging Order Enhanced^TM Operating Agreement such as the  "springing member" provisions (see item 5 below).  We also include special provisions in your attorney prepared custom drafted Operating Agreement that are intended to prevent the Operating Agreement from being an executory contract (a bad thing if a member is in bankruptcy court), which is the problem that arose in an Arizona Bankruptcy Court case called In re Ehmann.

To understand why we have formed over 2,000+ Arizona LLCs, see the testimonials from some of our recent LLC clients.

Arizona LLC attorney Richard Keyt's $599 complete LLC formation service includes all the following:

1. Both a digital pdf version and a hard copy of Arizona LLC attorney Richard Keyt’s 100+ page LLC owner’s manual called the Arizona LLC Quick Start Guide.  We sell this book for $99 on our website, but it is included at no additional cost when we form your LLC.  Rick wrote the QSG because he has formed over 2,000+ LLCs and people always ask the same questions about how to operate their new LLC.  It is unlikely that you will have a question about operating your LLC that is not answered in the QSG.  The QSG explains applicable Arizona LLC law.  It covers 75+ critical topics that affect Arizona LLCs.  See the Quick Start Guide's Table of Contents and you will be amazed that so many important topics are conveniently covered in one place.  THIS MUST HAVE LLC OWNER’S MANUAL IS NOT AVAILABLE ANY WHERE EXCEPT FROM RICHARD KEYT.

2. Unlimited telephone calls with Arizona entity formation and business attorney Richard Keyt about forming and operating your LLC.

3. Name selection advice and name verification with the Arizona Corporation Commission before filing.

4. We prepare the custom drafted Charging Order Enhanced^TM Articles of Organization.  This is not the two page fill in the blanks form provided by the ACC.  It is a document researched and developed by Arizona LLC attorney Richard Keyt and that coordinates with his Charging Order Enhanced^TM Operating Agreement.  We give every LLC we form our 30+ page Charging Order Enhanced^TM Operating Agreement drafted to reduce the risk that a bankruptcy court will ignore the Arizona law that provides that a charging order is the sole remedy of a creditor of a member. 

5. We include special language in both the Articles of Organization and the Operating Agreement that provides for a "springing member" to avoid the automatic termination of an Arizona LLC provided by Arizona law when the only member of the LLC is a person and that person dies.  Automatic termination of an LLC can have serious negative financial and tax consequences to the heirs of the deceased member.

6. We prepare the ACC Coversheet.

7. We file the Articles of Organization with the ACC on an expedited basis and pay the $85 expedited filing fee. 

8. On the day we file the Articles with the ACC, we will email to you the document with the ACC's "Received" stamp on it

9. On the day we file the Articles with the ACC, we will email to you instructions on how to access the digital pdf version of the Quick Start Guide on our website so you can get your federal tax id number the same day and open your bank account the next business day.

10. We will send you the ACC’s letter approving the Articles approximately two weeks after filing.

11. We will send you the Articles of Organization stamped with the ACC’s “approved” stamp and ACC file number.

12. We will prepare a Notice for Publication.

13. We will publish the Notice for Publication in a newspaper in the appropriate county before the deadline.

14. We will obtain an Affidavit of Publication from the newspaper

15. We will take care of filing the Affidavit of Publication with the ACC before the deadline.

16. We will give you Richard Keyt's 30+ page Charging Order Enhanced^TM Operating Agreement custom drafted for your LLC.

17. We will prepare a Disclaimer for each non-member spouse to sign when a married member will own his or her interest as separate property.  If a married spouse does not sign a disclaimer, Arizona law provides that a married member who acquires an interest in an Arizona LLC while married takes title as community property unless: (i) the interest was acquired as a gift or from inheritance, or (ii) the non-member spouse disclaims ownership.

18. We will act as the LLC’s statutory agent for its first year at no additional charge.  The Quick Start Guide explains how you can change the LLC's statutory agent at any time by filing a change form with the ACC.

19. We prepare organizational resolutions to be signed by all of the members in which the members elect one or more managers, approve the issuance of membership interests to the members and adopt other resolutions related to forming the new LLC.

20. We prepare Membership Certificates for all members.  The membership certificate is similar to a stock certificate.  It is numbered and signed by a manager and evidences that an interest in the company was issued to the member named thereon

21. We will prepare and mail to you a professional high-quality three ring "AZ LLC Portfolio" with seven tabs that contains all of the LLC's formation documents listed above.  Your Portfolio will contain approximately 150 pages of documents and information that we custom prepare for your LLC.  You should keep all important LLC documents in the Portfolio. 

22. On the same day we file the Articles of Organization with the ACC or the next business day, we will mail your LLC Portfolio to a manager of the LLC.

23. Up to four members and managers of the LLC receive a one year paid subscription (a $97 value) to Richard Keyt's Arizona LLC Operations Compliance Alert System.  The OCAS is an automated email system that sends periodic alerts to the members and managers of the LLC concerning important LLC operational issues.  It's an automatic tickler / reminder system for Arizona LLCs.

24. Add all members as subscribers to Richard Keyt's email LLC newsletter about operating Arizona LLCs and complying with Arizona LLC laws.

25. On request, Richard Keyt will give you a list of several Arizona CPAs he recommends.

Richard Keyt provides all of the above-referenced services, including a copy of the Arizona LLC Quick Start Guide for a fixed amount of $599.  See Rick Keyt's resume and areas of practice.

How to Hire KEYTLaw to Form Your New Arizona Limited Liability Company

If you value your time, want to protect your personal assets from creditors and would like an Arizona business attorney who has formed Arizona entities since 1980 to form your new limited liability company for a total of $599 ($549 for AZREIA members), including all fees and costs, do one of the following (call Rick Keyt - option number 1 or save time complete & print our engagement letter - option number 2):

1. Contact Richard Keyt by phone at 602-906-4953 ext. 101 or by email at rickkeyt@keytlaw.com.  A short ten minute phone call is the first step to forming your new Arizona limited liability company.  Richard Keyt will then email or mail to you an engagement letter.

2. Click on the link below to access a KEYTLaw LLC formation engagement letter then use your computer to fill in the blanks online and print and mail it to Richard Keyt (or print the document, complete it by hand and mail it).  The engagement letter is in .pdf format, which requires Adobe® Acrobat® Reader® software.  If you cannot open the LLC formation engagement letter, you probably do not have the current Reader® software, which you can download free from Adobe®.

Click to open the KEYTLaw LLC Questionnaire

KEYTLaw policy requires that new clients first sign an engagement letter and pay a security deposit to the firm in the amount of the estimated legal fees plus costs before the firm will provide any legal services.

If You Do Not Hire KEYTLaw to Form Your AZ LLC, Give Yourself Peace of Mind and Purchase Our Quick Start Guide - Only Available from KEYTLaw.com

What you don't know about operating your Arizona LLC could cost you thousands of dollars or possibly risk a court "piercing the veil" and holding the members of the LLC liable for its debts.  Arizona business attorney Richard Keyt's in depth, Arizona specific 100+ page Arizona LLC Quick Start Guide is the Holy Grail about operating Arizona LLCs.  Merriam-Webster's dictionary defines "Holy Grail" as "an object that is sought after for its great significance," a term that aptly describes the AZ LLC Quick Start Guide. 

How to Purchase the QSG

This owner's manual for operating an Arizona LLC explains 75+ critical topics that affect Arizona LLCs.  See the five page Table of Contents and you will be amazed that so many important topics are explained in one convenient source.  Click here to purchase the Quick Start Guide now from our internet store for the incredibly low price of $99.  Ignorance of Arizona LLC law and how to operate your Arizona LLC could be very costly.

Call 602-906-4953, ext. 1 NOW if you want an LLC to: (1) prevent creditors of your business or investment real estate from taking your personal assets, and (2) asset protect your personal assets from debts, liabilities and lawsuits.

Conclusion

Although it is relatively easy and inexpensive to form an Arizona LLC and the information in this article tells you how to do it, I recommend that you consult an Arizona business attorney when forming an Arizona LLC because there are many issues that may require legal advice and action.  For example, when offering to issue and issuing membership interests and securities, all LLCs must comply with federal and applicable state securities laws.  It may be advisable to file trademark applications with the U.S. Patent & Trademark office to protect your trademarks and/or service marks.  Forming the new Arizona LLC is just the "tip of the iceberg" with respect to operating a business in the LLC form.

Related Articles

Arizona Limited Liability Company Operating Agreement FAQ or Why Most Multi-Member Arizona Limited Liability Companies Need a Comprehensive Operating Agreement

Types of Entities for New Arizona Companies

How to Incorporate in Arizona (for profit corporations)

How to Form an Arizona Nonprofit Corporation

Limited Liability Company Issues

This article entitled "How to Form an Arizona Limited Liability Company" about forming a limited liability company Arizona was first published on December 30, 2001, and revised many times since then.  It is also about the following subjects: llc Arizona, llc in Arizona, limited liability company Arizona, forming an llc in arizona, arizona llc, llc forms, register llc, llc filing, llc business, llc names, llc articles of organization, arizona articles of incorporation, incorporate in arizona, form a limited liability company in Arizona, and limited liability company in Arizona.  I trust this article has helped explain how to form an llc in Arizona.

About the Author

KEYTLaw LLC Formation Records:  day: 17 (6/4/08); week: 27 (week ending 6/7/08); month: 64 (6/08); year: 425 (2007)

Join our free Arizona LLC email newsletter list.

Compare Richard Keyt's complete LLC package for $599 with what you get and what you will pay else where.  See testimonials from satisfied LLC clients.

Call 602-906-4953, ext. 1 NOW if you want an LLC to: (1) prevent creditors of your business or investment real estate from taking your personal assets, and (2) asset protect your personal assets from debts, liabilities and lawsuits.

If You Do Not Hire KEYTLaw to Form Your AZ LLC, Give Yourself Peace of Mind and Purchase Our Quick Start Guide - Only Available from KEYTLaw.com

What you don't know about operating your Arizona LLC could cost you thousands of dollars or possibly risk a court "piercing the veil" and holding the members of the LLC liable for its debts.  Arizona business attorney Richard Keyt's in depth, Arizona specific 100+ page Arizona LLC Quick Start Guide is the Holy Grail about operating Arizona LLCs.  Merriam-Webster's dictionary defines "Holy Grail" as "an object that is sought after for its great significance," a term that aptly describes the AZ LLC Quick Start Guide. 

How to Purchase the QSG

This owner's manual for operating an Arizona LLC explains 75+ critical topics that affect Arizona LLCs.  See the five page Table of Contents and you will be amazed that so many important topics are explained in one convenient source.  Click here to purchase the Quick Start Guide now from our internet store for the incredibly low price of $99.  Ignorance of Arizona LLC law and how to operate your Arizona LLC could be very costly.

Purchase The Real Estate Investor's KISS Guide to Bookkeeping (see Section 16 below for more about this QuickBooks add on) now for $299 from the KEYTLaw website here:

Click here to purchase the KISS Guide from our web store.

This page was last modified on June 15, 2009.

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