Basics of Business Formation in Arizona


One of the biggest advantages that residents of the state of Arizona have is the ability to easily create and maintain a business. Businesses are the foundation of our market economy, consistently delivering jobs and profits to individuals and the state. One of the most important steps after deciding that you would like to establish a business is hashing out the exact way that you must do it. Contact the Phoenix business formation attorneys at the Law Offices of William D. Black today if you would like to learn more about creating a business in Arizona.

Deciding the Type of Entity Your Business Will Be

Your first step will be deciding on a business entity type. This is a very important step as it will determine if your business is a corporation, non-profit or nonprofit corporation, or a limited liability company (LLC). On a side note, it is important to remember throughout this process that the distinguishments, “S” Corp., “C” Corp., and “501c3” Corp. are tax designations by the federal government. These are not the real, established entity titles given to businesses in the state of Arizona.

Choosing a Unique Name for Your Business

Another one of the very first important steps in establishing a business is choosing a name. This is a relatively cheap standard of procedure that all businesses do. Under the laws of Arizona, the phrases limited liability company, professional limited liability company, or an abbreviation of either of these terms must be in place for all LLC companies. 

You may otherwise search the Arizona corporation commission business name database and Google to determine if a name (or similar one) is already taken. You can make a name reservation through the Arizona Corporation Commission (ACC) website or by going to the Arizona Secretary of State (ASOS) website and registering the name as a trade name or submitting formation documents online. You may also want to purchase website domains and perform other establishing qualities for your business at this time.

Statutory Agents and Other LLC Necessities 

If you do choose to establish an LLC, you should appoint a statutory agent. All Single Member Limited Liability Companies (SMLLC) in Arizona must also file articles of organization with the ACC. The articles include a slew of requirements that are to be completed and filed online at once. In addition to these steps, an operating agreement is highly advisable (but not required) for newly-established LLCs.

Official Paperwork to Be Filed With the State of Arizona

Your next step should be to submit your formation documentation with the ACC. This is easily done on the ACCs provided online services. In addition to formation documents, one establishing an LLC should submit articles of organization. A newly-formed corporation, on the other hand, requires the submission of articles of incorporation to the state of Arizona.

Financials and Licenses at Various Governmental Levels

Your next step in your plan of action concerns financials and business licenses. Depending on your business, you may be subject to the transaction privilege tax and register the business on the local level. This will require you to consult with the Arizona Department of Revenue (ADOR) and the Arizona Commerce Authority Small Business Services. This transaction privilege tax and a business license may also be extended by the city or county in which you are establishing your business.

Filing Federal Tax Documentation

Finally, you should obtain an Employer Identification Number (EIN) or Tax Identification Number (TIN) from the Internal Revenue Service, also known as the IRS, website. Again, consulting the Arizona Commerce Authority Small Business Services website will be able to direct you as you attempt to establish a business in the state of Arizona.

The Trusted Business Law Firm with the Information You Need

Establishing a business in the state of Arizona may seem daunting and overwhelming, there are many resources at your disposal in order to help you through the process. Some of the principal sources of help that you are able to consult are local law firms that are dedicated to your success. If you would like expert legal assistance from an Phoenix business and commercial law attorney, please reach out to the Law Offices of William D. Black. Call 602-265-2600 to speak with a representative and or contact us online to find out how our law firm can help today.