Creating an LLC can help you protect your personal assets and separate your home and savings from potential business liabilities—including debts, lawsuits, and other potential challenges. However, establishing a business LLC in Phoenix requires several specific steps that can prove complicated. Working with a business solutions attorney can help ensure that you have followed the necessary process and done what is needed to protect yourself for the future.
Step One: Name Your LLC
Business owners should start by creating a unique name for the LLC: one that is not currently used by any other business. Including an “LLC” designator can help establish the type of business at a glance.
Step Two: Appoint Your Statutory Agent
In order to form an LLC in phoenix, new businesses will need a statutory agent who can accept legal documents and important paperwork for the business. A statutory agent, also known as a registered agent, must:
- Have a physical address (not a PO box)
- Be at least 18 years old, in the case of an individual; you can also appoint a business entity as a statutory agent
- Be available during business hours to accept legal communications on behalf of the business
Most business owners in Arizona choose to be their own statutory agent. When forming a partnership, the new LLC may need to appoint a specific individual or entity to fill that role.
Step Three: File the Articles of Organization
New LLCs must be registered with the Arizona Corporation Commission (ACC). The registration paperwork will include:
- The LLC’s name and address
- The purpose of the LLC: that is, its essential business function and the actions it expects to perform
- Information about the chosen statutory agent
- The management structure of the business
New business owners should expect to pay a fee to file their articles of organization, which may depend on whether or not they need expedited service.
Step Four: Publish Notice
As part of the process of legally establishing a business LLC in Phoenix, once the ACC approves the new corporation, business owners must publish their formation notice in a newspaper on a list provided by the ACC. This notification must be published at least three times.
Step Five: Establish the Operating Agreement
While creating an operating agreement is not part of the legally-mandated process of establishing a business LLC in Arizona, it is a key part of making sure that the business has a good operating structure and is prepared to launch. The operating agreement should include the owner of the business, who will manage the business and take on key operations, and how the structure of the business works. The operating agreement can be key in establishing liability in the event of a potential challenge.
Step Six: Get an EIN
Once the LLC has been created and approved, the business will need an Employer Identification Number. This number allows the employer to get a bank account, file and pay taxes, and navigate interactions with the IRS.
Discuss Establishing a Business LLC in Phoenix with Our Seasoned Lawyers
Because of the many steps involved in establishing a business LLC in Phoenix—not to mention the necessity of protecting your private finances as you launch your new business—talking to a lawyer can prove essential. At Dayes Law Firm, we understand the many ins and outs of business law, and we’re here to help you accomplish your goals. Contact us to discuss your new LLC and the steps you need to take to move forward.
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