Congratulations on making the decision to start your own business! This exciting process takes much planning and requires attention to detail, especially in the beginning stages. There are rules and regulations that need to be followed within the state of Arizona.
As an entrepreneur, you will need to decide if you want to start a sole proprietorship, partnership, limited liability company, or a corporation. Regardless of the type of business you wish to start, it’s important to build a strong foundation and obtain necessary licenses and permits.
Enlisting the help of an attorney for your business startup is a wise investment as it will take a lot of stress off your shoulders and ensure the startup of your business is being done right. A few benefits of doing so is you won’t have to spend time learning the legal process. Also, a legal representative will be able to help to trademark your entity name, and they understand how to fill out forms and documents correctly.
If you are considering a sole proprietorship, which is the simplest form of business, you won’t really need an attorney as you’re not required to register your business with the state of Arizona. However, for partnerships and LLCs as a business owner, you must register with the state, meaning that documents need to be prepared and specific steps need to be taken.
If you’re thinking about starting an LLC or Limited Liability Company, you’ve come to the right place! This guide will walk you step by step in the startup process for an LLC business in Arizona.
1. Decide on a Name
What type of business are you thinking of starting? Be sure you revolve the name of your company around the type of work that will be done. Keep it simple, yet creative. This will make it easy for potential clients to reach you.
There are some additional factors you want to keep in mind when choosing a name. For instance, if you are starting an LLC business, your entity name must contain the words “Limited Liability Company” or “LLC” within it. There also are restricted words such as an “attorney,” “bank,” or “university” that you need to be aware of.
Additionally, there is nothing worse than coming up with the perfect name and finding it has already been taken by another entity. We suggest conducting a name search to ensure it’s available and ready to use. Along with this, you want to be sure the URL is available so that you can purchase your domain name. The sooner you do so, the less the chances of someone else acquiring the name you want.
If this process seems too overwhelming for you, we recommend hiring a business litigation attorney who can help throughout the entire process of starting your own business. They understand what words are prohibited and could cause harm to your business. If you are set on a specific work, they understand the additional paperwork that is required to create your desired name.
2. Hire a Registered Agent
In the state of Arizona, it is required to choose a registered agent for your LLC. Also known as a statutory agent, this is a person or business who agrees to act on behalf of your LLC business by sending and receiving legal papers. This step is extremely important to be prepared in the case any legal action. Once you’ve chosen a reputable agent, it’s time to file the articles of organization which can be done online, by mail, or in person.
3. Notice of Organization
As a newly formed LLC, you are required to publish a notice of LLC formation for three consecutive weeks, unless the location of your business is in Maricopa or Pima County. If it is in any other county, this notice needs to be published in an approved newspaper within the county of the LLC’s principal office. The process of doing so is simple.
After filing the articles of organization, you will receive information on the next steps. Keep in mind that failure to comply with this requirement will result in the termination of your LLC, so you want to be sure you are well prepared and informed. We would like to add that while it is not required, it’s a good idea to create an operating agreement. This is a legal document that outlines the ownership and operating procedures of your LLC.
4. Receive an EIN
Finally, after all the steps above have been completed, it’s time to obtain an Employer Identification Number (EIN). This is also sometimes called a TIN, short for federal Tax Identification number, and its purpose is to identify your business entity. An EIN is needed when filing state and federal taxes. It’s also required by some banks when opening a business account. You can apply for an EIN from the IRS at no charge online or by mail.
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We hope our guide has made you more aware of how to start a business in Arizona. Cronus Law PLLC is proud to assist small to medium-sized businesses in the handling of complex litigation situations. Our attorneys and paralegals are highly qualified and trained to protect the rights of your business and minimize the risks. We look forward to representing you, your interests, and your business with our utmost capability.
Serving Phoenix, AZ and surrounding cities, we guarantee you haven’t met a legal team like ours. Cronus Law is made up of skillful lawyers and paralegals who have what it takes to achieve the best possible outcomes. Every single one of our lawyers has several years of experience on both the state and federal level.
We would like to add that we do not limit our services strictly to residents of Arizona. We will gladly serve individuals and businesses of other states. For any questions, comments or concerns, we invite you to contact us today. We can arrange a consultation with one of our attorneys if needed to better assist you. We look forward to hearing from you.