Creating a limited liability corporation (LLC) is a well-liked and practical choice if you’re planning to launch a business in Arizona. An LLC offers flexible management, personal liability defense, and tax benefits. A step-by-step tutorial for creating an LLC in Arizona is provided here.
Select a Name for Your LLC in Step 1 To create an LLC in Arizona, you must first decide on a name for your company. The name must be original and not on file with the Arizona Corporation Commission (ACC) already. On the ACC website, you can look up names that are available. Additionally, “Limited Liability Company,” “L.L.C.” or “LLC” must appear somewhere in the name of your LLC.
Select a Registered Agent in Step 2 A registered agent is a person or organization that accepts legal paperwork and other crucial documents on your LLC’s behalf. According to Arizona law, each LLC must appoint a registered agent with a local address. Although you can act as your own registered agent, it is advised that you use a reputable registered agent service to reduce the dangers involved.
Step 3: Submit Articles of Incorporation The Arizona Corporation Commission must then receive the Articles of Organization. The name and address of your LLC, the name and address of the registered agent, and the names and addresses of the LLC’s members or managers are all included in this formal document that establishes your LLC.
Step 4: Draft an Operating Agreement
Arizona law does not mandate the creation of an operating agreement, although it is strongly advised. The internal workings of your LLC are described in an operating agreement, including how decisions will be made, how profits and losses will be distributed, and what happens if a member wishes to quit the LLC.
Reasons Not to Use LegalZoom
While using LegalZoom to create an LLC may seem like a practical and cost-effective solution, there are a number of drawbacks. LegalZoom is not a law office and is unable to offer legal counsel. Additionally, their documents could not be customized to your particular requirements or adhere to Arizona legislation. It is advised to work with a qualified attorney to make sure your LLC is set up correctly and in accordance with the law. Risks Associated with Serving as a Registered Agent Being a registered agent entails a number of hazards, such as receiving legal papers in front of others, having your personal information published in public records, and being in charge of making sure crucial documents are received and handled correctly. These dangers can be reduced, and peace of mind can be attained, by using a reputable registered agent service. Comparing an LLC and a sole proprietorship A sole proprietorship does not offer personal liability protection, despite the fact that it may appear like a convenient and affordable alternative for launching a firm. This implies that if your company is sued, your personal assets may be at stake. For the majority of firms, becoming an LLC is a superior alternative since it offers personal liability protection and tax benefits.
You must submit a change of agent form to the Arizona Corporation Commission in order to remove a statutory agent in Arizona. There is a charge involved with submitting this form, which can be done online or by mail. Your new agent will take up the duties of receiving legal and official papers on behalf of your LLC after the form has been finalized. As it is needed by law to have a designated agent at all times, it is vital to highlight that you should only alter your agent once you have found a new one to take their place.
You must submit a Statement of Change of Known Place of Business Address or Statutory Agent/Statutory Agent Resignation (Form LLC-15) to the Arizona Corporation Commission in order to remove a statutory agent for an LLC in that state. The LLC’s authorized representative must fill out and sign the paperwork. The Arizona Corporation Commission will update the LLC’s records to reflect the change in statutory agent after the paperwork is submitted and the fee is paid. It is crucial to remember that before the present statutory agent can be fired, the LLC must name a new one.