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Do I need an LLC in Arizona?
An LLC, which stands for "Limited Liability Company," is a type of business structure that lets you classify your business as a separate entity from you personally. This allows you to keep your personal assets separate from your business assets, and protect them from your business' debts and liabilities.
You can open bank accounts, enter contracts, hire employees, and obtain business licenses and permits under your LLC. Most states require an annual filing and fee to keep your business in good standing.
What's the difference between an LLC and a corporation (Inc)?
Both LLCs and corporations classify your business as separate from you personally, providing personal liability protection and shielding your personal assets from your business liabilities.
Under both you can open bank accounts, enter contracts, hire employees, and obtain business licenses and permits. The key differences between the two include management structure, corporate formalities, and tax flexibility.
LLCs can be either member-managed or manager-managed, while corporations must have a board of directors, officers, and shareholders. Corporations also have more formal maintenance requirements than LLCs, requiring annual meetings with corporate minutes. And LLCs offer pass-through taxation—which means profits flow through to the owners, who get taxed on them as individuals—while corporations may be subject to double taxation at the business and personal level.
What are my tax options with an LLC?
LLCs are more flexible when it comes to taxes. Single-member LLCs can file as sole proprietorships. LLCs with multiple members can file as partnerships. Any kind of LLC can file as a corporation—either a C corporation or an S corporation.
What's the process for forming my LLC?
If you know the name you want to use, we'll do an initial search. Not yet sure? You can decide once you've completed our questionnaire.
Next, we'll review your answers and check if your proposed LLC name's available with the Secretary of State. If not, we'll contact you for an alternative name. Once your name's settled, we'll prepare your Articles of Organization and submit them to the Secretary of State to register your LLC.
Finally, we'll complete any additional documents you ordered like your Operating Agreement or EIN, which you can access and download from My Account. If you added business licenses we'll prepare those as well.