It’s common to establish a limited liability company (LLC) while launching a business in Arizona. In comparison to other business forms, an LLC gives you more flexibility and tax advantages while also providing legal protection for your personal assets. However, it’s crucial to understand how long your LLC will last before you begin.
An LLC is regarded as a perpetual entity in Arizona. This means that the LLC will remain in existence indefinitely unless otherwise provided in the operating agreement or the articles of organization. The LLC won’t end until a member decides to leave, passes away, or the company is dissolved.
A sole proprietorship and a single-member LLC both have an owner who is accountable for all profits and losses and who is subject to individual taxation. However, a sole proprietorship, which is not regarded as a distinct legal entity, does not provide the same level of legal protection as a single-member LLC. A single-member LLC has the same eternal life as a multi-member LLC in Arizona.
It is easy to convert from operating as a single owner to an LLC if you currently do so. However, you must submit the required documents to set up an LLC and apply for a new EIN (Employer Identification Number) with the IRS. It’s crucial to understand that converting to an LLC won’t provide protection from any debts or legal obligations accrued as a sole proprietor.
You must submit Articles of Organization to the Arizona Corporation Commission in order to form an LLC there. The name, address, registered agent information, and, if the LLC isn’t everlasting, its term, should all be listed in the articles. Additionally, you will need to get any licenses and permits your firm may require.
In Arizona, an LLC has a permanent existence unless the operating agreement or articles of creation provide otherwise. A single-member LLC has the same permanent life as a multi-member LLC but provides more legal protection than a sole proprietorship. It is possible to convert a sole proprietorship into an LLC, but caution and the appropriate documentation must be taken. In order to form an LLC in Arizona, you must submit Articles of Organization to the Arizona Corporation Commission and get all required permits and licenses. You can get an EIN for your LLC for nothing from the IRS or for a small price through online businesses.
Yes, LLCs and other forms of businesses operating in Arizona must have a business license.