Arizona is a fantastic state in which to launch your business. It is recognized as the tenth best state in the nation to launch a business. The Limited Liability Company (LLC), one of the most popular commercial entity kinds in Arizona, is a legal entity type. A hybrid business organization called an LLC combines the advantages of corporations and partnerships. It provides pass-through taxation and limited liability protection for the company’s members.
So what does it cost in Arizona to form an LLC? In Arizona, creating an LLC costs $50. You must submit this filing fee to the Arizona Corporation Commission (ACC) in order to register your LLC. However, there is an additional $35 fee for expedited processing if you wish to speed up the procedure. This will guarantee that your LLC gets incorporated within a day.
You might also need to obtain a bank letter confirming your good standing in addition to the filing fee. This letter from your bank attests to the fact that things are in excellent standing with your company. The ACC needs to approve your LLC before they can proceed. Each bank has a different fee structure for receiving a letter of good standing from them. While some banks might demand a fee, others might offer it without one.
You must maintain the good standing of your LLC after it has been established. This entails abiding by all legal and administrative obligations in Arizona. If you don’t, you could face fines or possibly have your LLC dissolved. You must submit an annual report to the ACC along with a $45 charge in order to maintain the good status of your LLC. A registered agent in Arizona who may accept legal notices and papers on behalf of your LLC is another requirement. What are the qualifications for statutory agents in Arizona, while we’re on the subject? A statutory agent is a person or organization that has been given permission to accept legal notifications and paperwork on behalf of your LLC. The statutory agent must be an Arizona resident or a business with a license to operate there. Additionally, the statutory agent needs to live in Arizona. Either nominate yourself or make use of a reputable registered agent service as the statutory agent.
To sum up, creating an LLC in Arizona is a simple and economical process. In Arizona, incorporating an LLC costs $50, and an extra $35 is required if you want the procedure to be completed more quickly. You must submit an annual report and continue to use an Arizona registered agent in order to keep your LLC in good standing. You may assure the long-term success of your LLC by abiding by all legal and regulatory regulations.
The income made by an LLC in Arizona is not subject to corporate income tax since LLCs are taxed as pass-through businesses. As opposed to being retained by the LLC, the revenue is passed through to the individual members, who then report it on their individual tax returns and pay taxes on it at their own tax rates. Additionally, Arizona levies an annual LLC tax that is capped at $7,000 and is dependent on the LLC’s Arizona gross revenue.