Cost of LLC in Arizona: Everything You Need to Know
The cost of forming an LLC in Arizona is a topic that many entrepreneurs in the Grand Canyon State are interested in learning more about. 3 min read
What Is the Cost of Forming an LLC in Arizona?
The cost of forming an LLC in Arizona is a topic that many entrepreneurs in the Grand Canyon State are interested in learning more about. When it comes to LLCs in Arizona, entrepreneurs have to think about filing fees and ongoing annual fees.
What is an LLC?
One of the defining characteristics of an LLC is that it provides its members with protection from personal liability for company obligations like debts. It also allows members and partners to take advantage of a simpler taxation method.
Name Search and Reservation
As you may have guessed, the first step in forming an LLC is selecting a unique name. To avoid confusion, you cannot select a name that is identical to that of any other entity formally registered in the state. The name you select cannot be very similar to the name of another company.
If you're not sure which names are available, you can check the ACC's website and search through the database of all the names that are taken.
The filing fee for reserving a unique name online is $45. If you want to save money, the filing fee for reserving a name by mail is just $10.
The name needs to contain words that indicate that the entity is an LLC. Some words that you can include in the name to fulfill this requirement include:
- Limited Liability Company
The state of Arizona requires that business owners fill out extra paperwork if they wish to include restricted words in the name. Some examples of restricted words are University, Bank, and Attorney. In some cases, you may need to have a licensed individual like a lawyer or doctor join your LLC before you can add restricted words to the name.
Prohibited words for the name of an LLC are FBI, Treasury, and Secret Service. In general, words that would cause individuals to confuse your LLC with a government agency are prohibited.
Once you've selected a unique name for your LLC, you should reserve a domain name for your LLC as soon as possible. The domain name should be fairly close to the name you've selected for your LLC. It is important that you buy a domain name even if you don't plan on creating your website immediately.
Check to see if the name of your LLC is available so that you can reserve your domain name. Even if you don't plan to make a website today, you may want to buy the domain name in order to prevent others from buying the domain name before you do. Not only should you consider a domain name when choosing a name for your LLC, but you should also keep a professional email address in mind.
The name of a professional LLC should contain "professional limited liability company" or an abbreviation of these words.
You can file an Application to Reserve Limited Liability Company Name for 120 days with the Arizona Corporation Commission. You can find this application on the website of the Corporation Commission.
Once you've chosen a name for your LLC, the next step is filing the Articles of Organization. These articles need to include the name and location of the company and the names and contact information of the members. If the company is only going to operate for a temporary amount of time, you should include the date on which the company should be dissolved.
Registration of the LLC
The fee for the registration of a domestic LLC is $50. However, if you want to expedite processing, the fee is $85. The registration fee for a foreign LLC is $150. If you want to expedite processing, you will need to pay $185.
The fee for reinstating a dissolved LLC is $100. It will cost you $135 to have the processing of the reinstatement expedited.
The average processing time for the Articles of Organization in the state of Arizona is 20 business days. You can pay $35 more to the state of Arizona to have the Articles of Organization processed in nine business days or so.
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