The first step in creating an LLC is picking a name. The Arizona Corporation Commission’s internet database can be searched to see if your selected name is available. The words “Limited Liability Company” or “LLC” must appear in the name of your LLC.
Step 2: Submit Articles of Incorporation You must submit Articles of Organization to the Arizona Corporation Commission after choosing a name for your business. This document formalizes the formation of your LLC and contains crucial details including the LLC’s name and address, the registered agent’s name and address, and the members’ names and addresses.
Employer Identification Numbers, or EINs, are special nine-digit numbers that the IRS issues to companies for tax-related reasons. To open a bank account, recruit staff, and file taxes, you need an EIN. An EIN is available from the IRS without cost.
Update Licenses and Permits (Step 4) Any licenses and permissions you previously held as a sole proprietor must be updated once your LLC has been formed. This can include business permits from the federal, state, and municipal governments, as well as licenses for professionals.
Arizona LLC dissolution You must submit Articles of Dissolution to the Arizona Corporation Commission if you intend to dissolve your LLC there. The date of dissolution, the reason for dissolution, and the names and addresses of the LLC’s members are all included in this official document that ends the LLC’s existence. Taking a Co-Owner Out of an LLC
You must adhere to the processes provided in your LLC’s operating agreement if you want to get rid of a co-owner. You must adhere to the steps stated in the Arizona Revised Statutes if your LLC lacks an operating agreement. In general, all members must agree in order to remove a co-owner. Multi-Member LLC vs. Single-Member LLC
A multi-member LLC is owned and operated by two or more people, as opposed to a single-member LLC, which is owned and operated by one person. A single-member LLC is taxed as a sole proprietorship, whereas a multi-member LLC is taxed as a partnership. This is the fundamental distinction between the two.
You must adhere to the processes provided in your LLC’s operating agreement if you want to replace a partner. You must adhere to the steps stated in the Arizona Revised Statutes if your LLC lacks an operating agreement. In general, all members must agree in order to add or remove a partner.
Finally, it should be noted that changing a sole proprietorship in Arizona into an LLC is a pretty easy process that calls for submitting Articles of Organization and acquiring an EIN. Articles of Dissolution must be filed with the Arizona Corporation Commission if you desire to dissolve your LLC. The tax treatment of a single-member LLC and a multi-member LLC differs, and both require the approval of all members in order to remove or replace a co-owner or partner.
Yes, it matters whether you are considered a single-member or multi-member LLC. Depending on your LLC’s classification, there may be differences in the steps and requirements for converting your sole proprietorship to an LLC. Before making the conversion, it is crucial to comprehend the distinctions between the two classifications and how they will affect your company.