How to Start an LLC in Arizona

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Starting an Arizona LLC

How to Form an LLC in ArizonaAn Arizona Limited Liability Company (LLC) is a business structure that offers personal liability protection in case of a lawsuit. In the event your Arizona LLC is sued, your personal assets (like your home, vehicles, and bank accounts) will be protected.

You can use an Arizona LLC to run a business or you can use your LLC to purchase assets, such as real estate, vehicles, boats, and aircraft.

Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

1. Arizona LLC Name

Before filing your Arizona LLC’s Articles of Organization with the Arizona Corporation Commission (AZCC), you’ll need to search your Arizona LLC Name in the state’s database to make sure your desired business name is available for use.

Your Arizona LLC name must be unique and distinguishable when compared to existing businesses registered in the state.

Search your LLC name: Arizona Business Entity Search Page

LLC Designator: As per the Arizona LLC Act section 29-3112, your LLC name must end with a proper designator. The following are the only ones that are allowed:

  • LC
  • L.C.
  • LLC
  • L.L.C.
  • Limited Company
  • Limited Liability Company

Tip: If you’re not sure which designator to use, “LLC” is the most common. It’s also the easiest to recognize.

Your Arizona LLC name cannot include a designator that makes it sounds like a different type of legal entity:

  • Inc.
  • Incorporated
  • Corp.
  • Corporation
  • LP
  • LLP
  • Non Profit
  • Non Profit Corporation

Far too many people rush the LLC formation process and then later want to change their Arizona LLC name. While you can change your LLC name later (by filing an amendment), the process can be a major pain. You’ll need to change your LLC name with the IRS, the bank, and the Arizona Department of Revenue. For this reason, we recommend reading how to come up with a good business name so you don’t have to change your LLC name later.

2. Arizona LLC Statutory Agent

As per section 29-3115 of the Arizona LLC Act, you need to list an Arizona Statutory Agent in your LLC’s Articles of Organization.

An Arizona Statutory Agent is a person or company who agrees to receive notices, legal mail, and court documents (called Service of Process) in the event your LLC is sued or involved in a court case.

Most states use the term “Registered Agent”, however, Arizona and a few other states call them “Statutory Agents” or “Resident Agents”. They all mean the same thing. The official term in Arizona is “Statutory Agent“.

Your Arizona Statutory Agent must have a physical street address located in the state (PO Boxes are not allowed) where Service of Process and other documents can be received.

If your Arizona Statutory Agent will be a person:

  • they must be a resident of Arizona
  • they must have a physical street address
    (a PO Box can’t be used)

If your Arizona Statutory Agent will be a company:

  • they must be registered to do business in Arizona
  • they must have a place of business in Arizona
  • they must have a physical street address
    (a PO Box can’t be used)

Who can be your LLC’s Arizona Statutory Agent?

Note: As we mention in our Arizona Statutory Agent lesson, who you choose as your LLC’s Statutory Agent will have an impact on your privacy (whether or not your address is on public records) and if your LLC will need to meet the newspaper publication requirement.

In Arizona, you have 3 options for who can be your LLC’s Statutory Agent:

Option #1 is for you to be your LLC’s Statutory Agent.

Option #2 is for a friend or family member to be your LLC’s Statutory Agent.

Note: Options #1 and #2 are not applicable if the person isn’t a resident of Arizona (for example, you live in Idaho but want to set up an LLC in Arizona).

Option #3 is to hire a Commercial Statutory Agent. Hiring a Commercial Statutory Agent is a good idea if you want to keep your address off public records or if you don’t have an address in Arizona.

Commercial Statutory Agent: If you want to hire a Commercial Statutory Agent in Arizona, we recommend Northwest Registered Agent ($125 per year).

Northwest has great customer service and has been in the business for over 20 years. Any mail that is sent to your LLC will be scanned by them and uploaded to your online account. They’ll also let you use their office address throughout your LLC filing in order to keep your address off of public records (and to avoid the newspaper publication requirement).

Northwest is registered to do business in Arizona, they have a place of business in Arizona, and they have a physical street address in Arizona (they meet all of the requirements).

Special offer: If you hire Northwest to form your LLC ($39 + state fee), they’ll include their Registered Agent service free for the 1st year.

3. Arizona LLC Articles of Organization

The Arizona LLC Articles of Organization (Form L010) is the document that creates your Arizona LLC.

Method of filing: You can file your Articles of Organization online or by mail.

Arizona LLC filing fee: $50

(Learn more about all the Arizona LLC Costs)

Our recommendation: We recommend the expedited online filing ($85) since there is less paperwork and the approval time is only 1 day.

If you’re okay with spending $85 to get your LLC approved in 1 day:
File your LLC online and don’t upload a signed Statutory Agent Acceptance form or any other documents during the online filing. Your Statutory Agent can then accept their position by clicking an email link sent by the AZCC. Therefore, as soon as the Statutory Agent clicks the acceptance link, your LLC will be approved.

If you only want to spend $50 and don’t care about approval time:
You can file your LLC online or by mail. Both methods have a 14-16 business day approval time. If you file online, you need to upload a signed Statutory Agent Acceptance form. If you don’t upload the form, the system won’t let you select a $50 filing fee at checkout.

Note: Filing times may take longer due to the current global situation and government delays. Please see how long does it take to get an LLC in Arizona.

File your LLC online: Arizona Corporation Commission: eCorp registration

File your LLC by mail: Along with your Articles of Organization, you must also mail 3 additional documents:

  1. AZCC Cover Sheet
  2. Statutory Agent Acceptance
  3. Membership Attachment
    (Member-Managed or Manager-Managed)

Prepare a check or money order and make it payable to the “Arizona Corporation Commission”. If you send $50, approval time is 14-16 business days. If you send $85, approval time is 7-9 business days.

Mail your documents to:
Arizona Corporation Commission
1300 West Washington Street
Phoenix, Arizona 85007

Arizona LLC approval documents: After your Arizona LLC is approved, you’ll receive the following two documents:

  • Approval Letter
  • Notice of Publication

Approved Articles of Organization: The AZCC doesn’t send you a copy of your approved Articles of Organization. You’ll need to download this (for free) from their database. Go to AZCC eCorp: Entity Search, search your LLC name, click “Document History” (bottom of page), and click “Articles of Organization”.

Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

4. Arizona LLC Operating Agreement

An Arizona LLC Operating Agreement is a written contract among the LLC Members that spells out who owns the LLC and how much of the LLC they own. Your Arizona LLC’s Operating Agreement will also document how your LLC is managed, how profits are split, how taxes are paid, and more.

An Operating Agreement should be put in place for both Single-Member LLCs and Multi-Member LLCs located in Arizona.

Having an Operating Agreement for your Arizona LLC helps prove that the company is a separate legal entity from its owners. This helps maintain the personal asset protection provided by your LLC and is very beneficial to have if you ever end up in court.

Internal Document: An LLC Operating Agreement is an “internal document”, meaning, you don’t have to send a copy to the AZCC, the Department of Revenue, the IRS, or any other government agency. Just need to keep a copy of the Operating Agreement with your LLC business records and give a copy to any other LLC Member, if applicable.

Download an Arizona LLC Operating Agreement: We provide free Arizona LLC Operating Agreement templates that you can download on this page: Arizona LLC Operating Agreement

5. Apply for an EIN for your Arizona LLC

An EIN (Employer Identification Number) is obtained from the IRS after your Arizona LLC is approved by the AZCC.

An EIN is also called an EIN Number, FEIN, Federal Employer Identification Number, or a Federal Tax ID Number. They all mean the same thing.

It’s helpful to think of your Arizona LLC’s EIN Number as its “social security number”. It helps identify your LLC to the IRS for tax and filing purposes.

Your Arizona LLC’s EIN will also be used when you open an LLC bank account, register your LLC for taxes, and process employee payroll (if applicable).

How is an Arizona LLC taxed: The IRS doesn’t have a specific tax classification for LLCs and instead, an Arizona LLC can be taxed 4 different ways with the IRS; 2 of which occur by default (they occur simply by obtaining your LLC’s EIN), and 2 require a special election be made (a form must be filed after you obtain your LLC’s EIN). We recommend reading how is an LLC taxed before applying for your EIN.

Wait for LLC approval: Don’t apply for an EIN until your Arizona LLC is approved by the AZCC.

An EIN is free ($0): The IRS will issue an EIN to your LLC at no cost.

Husband and wife LLC: If you are forming a 2-Member husband and wife LLC in Arizona you can elect a special type of taxation called a Qualified Joint Venture. This allows a 2-Member husband and wife LLC to be treated as a Sole Proprietorship instead of a Partnership for tax purposes.

EIN Responsible Party: This will be the IRS’s “contact person” when you apply for your Arizona LLC’s EIN. If you have a Single-Member LLC, you will be the Responsible Party. If you have a Multi-Member LLC, any LLC Member can be the Responsible Party. For more information, please see EIN Responsible Party for LLC.

How to apply for an EIN: There are 3 ways to apply for an EIN for your Arizona LLC:

  1. If you have an SSN or ITIN, you can apply for an EIN online
  2. If you apply for an EIN online and you get an error message, you’ll need to apply for an EIN with Form SS-4 instead
  3. If you don’t have an SSN or ITIN, you can still get an EIN for your LLC by following these instructions: how to get an EIN without an SSN or ITIN

6. Arizona LLC Annual Report

No LLC Annual Report in Arizona: Unlike most states that require LLCs to file an Annual Report and pay an annual fee, the AZCC doesn’t require any Arizona LLC Annual Reports.

Again, there are no annual fees or reports that need to be filed with AZCC, however, that doesn’t mean you don’t have to pay taxes or meet obligations with the Arizona Department of Revenue (details a few sections below).

7. Newspaper Publication Requirement

Arizona is 1 of only 3 states that require LLCs to publish an ad in the newspaper after they are formed.

Although this is somewhat antiquated (since the original purpose was to “notify the public”), it is still a state requirement for most LLCs in Arizona.

Within 60 days of your Arizona LLC being approved, you must publish an ad in a newspaper for 3 “runs” (publications). 3 runs usually take about 1-2 weeks, depending on the newspaper.

The newspaper must be located in the same county where your Arizona LLC Statutory Agent holds a physical street address.

Once your ad has run, the newspaper will send you proof/verification; a document called an Affidavit of Publication. Although it’s optional, it’s best practice to then record that Affidavit of Publication with the AZCC. This is free. We have instructions here: Arizona LLC publication requirement

Approved newspapers: Here is a list of approved Arizona LLC newspapers from the AZCC.

Most Arizona LLCs: If the physical street address of your Arizona LLC Statutory Agent is in Pima or Maricopa county, you don’t have to publish an ad in the newspaper.

If your Arizona LLC Statutory Agent holds a physical street address in any other county, then you must publish an ad in a newspaper in that county.

The reason for this is House Bill 2447 and changes that went into effect in 2017. Arizona LLCs with Statutory Agent addresses located in Pima or Maricopa county are published on the AZCC website… therefore, this fulfills the newspaper publication requirement for you. And you don’t have to worry about publishing any ads in the newspaper.

8. Arizona Business License & Permit

Your LLC may need an Arizona Business License. Arizona has three types of business licenses for LLCs. Some, none, or all of them may apply to your Arizona LLC:

  • Transaction Privilege Tax (TPT)
  • Local Business License
  • Regulatory (Professional/Special) License

Transaction Privilege Tax: Commonly referred to as a sales tax (although it really isn’t), the Transaction Privilege Tax (TPT) is a tax on sellers for the privilege of doing business in Arizona. The amount of tax varies by the location of your LLC. Additional info is below in the next section.

Local Business License: Arizona doesn’t impose a state business license, however, your LLC may need a local business license from the county, city, or town it is located or does business in. Furthermore, you may also need a permit depending on your business activities.

We recommend contacting your county, city, and/or town for more information.

The Arizona Commerce Authority has two helpful directories:

Regulatory or Professional License: Your LLC will need this license if it offers professional services (law, medicine, accounting, etc.) or does business in a regulated industry (firearms, mining, drilling, etc.)

The Arizona Commerce Authority has more information on how to obtain a Regulatory (Professional/Special) License, as well as other licenses and permits your Arizona LLC may need: Arizona Commerce Authority: Business Licensing

The Arizona Commerce Authority also has a checklist to help to make setting up your LLC and getting the required licenses and permits a little bit easier: Arizona Commerce Authority: I am ready to start my business in Arizona

If you don’t want to make the calls and do the research to determine your licensing requirements, we recommend using IncFile.

9. Arizona LLC Taxes

The below is a general overview and doesn’t include all the taxes you may be responsible for. Arizona LLC Taxes vary widely and depend on many factors, such as how your LLC is taxed, where it’s located, who the owners are, if there are employees, and your industry. Other types of taxes in Arizona include (but are not limited to) payroll taxes, unemployment taxes, and industry-specific taxes.

Income tax: You are responsible for paying income tax to the federal government (IRS) as well as to the state of Arizona (Department of Revenue). This is true for all Arizona LLCs.

Federal income taxes: By default, LLCs are “pass-through” entities, meaning that the LLC doesn’t pay its own taxes, but rather, the profits or losses “flow through” to the owners and the owners have the responsibility of reporting and paying federal taxes. Exceptions to this are if you elect to have your LLC taxed as a Corporation (C-Corp or S-Corp).

The IRS doesn’t have an “LLC tax classification”; therefore, LLCs are taxed based on the number of Members they have.

Single-Member LLC: Taxed like a Sole Proprietorship. Most will list their LLC’s income on a Schedule C as a part of their personal 1040 federal tax return.

Multi-Member LLC: Taxed like a Partnership. The LLC files an informational return (Form 1065), but the LLC doesn’t pay taxes. Instead, the LLC issues a K-1 to each Member (showing their portion of profits) and then each Member lists that income as a part of their personal 1040 federal tax return.

Arizona Resident Personal Income Tax Return (Form 140): Applies to all LLCs whose Members are residents. For most people, this is due by April 15th each year.

Arizona Partnership Income Tax Return (Form 165): Applies to Multi-Member LLCs. For most, it’s due by March 15th each year.

Arizona Corporation Income Tax Return (Form 120): Applies to LLCs taxed as a C-Corporation. Tax rate is currently 4.9%. For most, this is due by April 15th each year. However, this type of taxation is not very common.

Arizona S-Corporation Income Tax Return (Form 120S): Applies to LLCs taxed as an S-Corporation. Tax rate is currently 4.9%. For most, this is due by March 15th each year.

Estimated Taxes: Depending on how your LLC is taxed and what your tax liability is, there is a good chance you may need to file quarterly estimated tax payments.

Transaction Privilege Tax (TPT): All LLCs engaged in selling retail goods or engaging in certain services need to pay a Transaction Privilege Tax.

You can get your TPT license here:
Arizona Department of Revenue: Transaction Privilege Tax

If you need help with your sales tax filings, we recommend using TaxJar.

Reseller Certificate: If your Arizona LLC will buy goods from other businesses for the purposes of resale and/or manufacturing, you can avoid paying Transaction Privilege Tax by presenting the seller/vendor with your LLC’s Reseller Certificate. After you get your TPT License Number, you can then download and complete the Arizona Resale Certificate (Form 5000A).

We recommend working with an accountant: We recommend working with an accountant in Arizona to make sure you properly file your federal, state, and local taxes.

10. Arizona LLC Bank Account

Once the IRS has issued an EIN Number to your Arizona LLC, you can open a business checking account.

It’s best practice to have a business checking account for your Arizona LLC in order to maintain your personal liability protection. Using a personal bank account for your LLC is called “commingling of assets” and this can lead to personal liability issues if you end up in court.

Having a separate business bank account for your Arizona LLC also makes record-keeping easier for accounting and tax purposes.

Since banks in Arizona all have their own rules and regulations, we recommend calling a few banks to determine the following:

  • minimum initial deposit
  • minimum balance requirements
  • monthly maintenance fees (if any)

Required Arizona LLC paperwork: In order to open a business bank account for your Arizona LLC, you’ll likely need to have the following:

  • Articles of Organization (stamped and approved)
  • Approval Letter from AZCC
  • EIN Confirmation Letter from the IRS (or EIN Confirmation Letter 147C)
  • Photo ID (driver’s license and/or passport)
  • Operating Agreement (usually not needed, but good to bring anyway)

Note: Call the bank ahead of time and double-check what documents are required.

For more details: Please see the following article: Business Bank Account for an LLC.

LLC Members: If you have a Multi-Member Arizona LLC, all Members that want to be on the bank account should be present when opening the account.

Non-U.S. residents: If you are a non-US resident that has formed an LLC in Arizona, you can still open a U.S. business bank account. Please see this lesson: opening an LLC bank account for non-US residents

Debit card: The bank will give you a debit card when you open the account.

Credit card: You can also get a business credit card to earn points, miles, and other rewards.

11. Arizona Business Phone Number

Instead of giving out your cell phone number (or home telephone number), it might be a good idea to get a separate business phone number for your Arizona LLC.

We recommend getting a phone number from They have the most affordable plans and good customer service.

You can get a local Arizona telephone number or you can get a “1-800” number for your business. lets you set up call forwarding to any number you like, create pre-recorded messages, and you can get your voicemails sent right to your email.

Getting a separate phone number for your Arizona LLC is also a good idea if you’d like to keep your actual phone number off of those annoying “public record” websites.

Arizona State Agencies

Arizona Corporation Commission (AZCC)
(LLC filing)
Arizona Corporation Commission
Arizona Corporations Division: Contact List
602-542-3026 (8am to 5pm)

Arizona Department of Revenue (DOR)
(AZ taxes)
Arizona Department of Revenue
Arizona Department of Revenue: Contact Us
602-255-3381 (8am to 5pm)

Arizona Department of Economic Security (DES)
(AZ employers)
Arizona Department of Economic Security
Arizona Department of Economic Security: Contact Us
602-542-4791 (8am to 5pm)

Matt Horwitz

Matt Horwitz
Founder & Educator, LLC University®
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.

32 comments on “Arizona LLC”

Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

  1. Hello Matt. From what I am reading it’s best to form the LLC in the state the property is in.

    Our scenario. We live in Indiana but have purchased property in Arizona as an investment property not a second residence.

    Thank you,
    Sally Carlton

    • Hi Sally, yes, that is correct. The LLC should be formed in the state where the property is located since that is where you are legally doing business. Hope that helps.

      • Are they required to also the Arizona LLC as a foreign LLC, and form an LLC in Indiana where they live?

        • Hi APB, usually no, unless it’s California. They would not need to register the Arizona LLC as a Foreign LLC in Indiana. And they would not need to form a Domestic LLC in Indiana (if they form a Domestic LLC in Arizona). The business is being done in Arizona, so that’s where the registration should take place. Here’s a related article: Domestic LLC vs Foreign LLC. Hope that helps.

  2. I have a client who develops apps and operates as a sole proprietor, in New York. He is considering forming an LLC, but is afraid of the costs of registering in New York, namely advertising requirements. Is there any reason why he should not register the LLC in Arizona (only a $50 filing fee),and apply to do business in New York? Do the operations need to be done in Arizona?

    • Hey Scott, yes, there are many reasons why he shouldn’t register outside of New York, since that is where he is legally doing business. Check out “best state for LLC” for more info. If he forms an LLC in Arizona, but is doing business in New York, he’ll have to register the Arizona LLC as a Foreign LLC in New York. Also, if he follows our New York LLC course (follow the lessons in order), we explain how to save money on the newspaper publication costs. Hope that helps :)

  3. My Arizona LLC company sells home seller leads to retail merchants and insurance companies nationwide. Does my LLC have to file as a foreign LLC in other States?

    • Hey Tom, no, likely not, unless you are “doing business” in those states. “Doing business” has much more to do with where you are operating from, not where your clients are. Hope that helps.

  4. Hi Matt,
    I use to live in Florida and New Jersey. Currently living abroad mostly traveling but also running an online travel agency(and other mostly online projects which allows working remotely). Although a non resident I need to register an Arizona LLC(or wherever makes more sense) to gain access to some large cruise lines tools for travel agents(it’s their requirement to be registered in US). However the business is operated online(various countries depends where we are ) and won’t operate in a particular US state. What are your thoughts on this? How non residents should register a LLC in this case? or should I go for it as sole proprietor?
    Many thanks

    • Hey Cris, we don’t recommend a Sole Proprietorship over an LLC for liability reasons (see LLC vs sole proprietor). Do you file income taxes at the state level? Since you’re likely not doing business in any particular state by the nature of you residing/living there, you likely have all states open to you. And the decision should then be more influenced by taxes, so we recommend speaking with an accountant to discuss strategy. Hope that helps.

  5. Hi Matt,

    I have a TIN for my DBA, and now want to “convert” to LLC. Will the IRS transfer the current TIN, or will I need to get a new one? The business name isn’t changing, except to add LLC.

    Thanks much!!

    • Hi Diana, the IRS will not automatically transfer the EIN from the DBA to your LLC. You can transfer the EIN by sending a letter to the IRS. More info here: convert Sole Proprietorship to LLC. Or you can cancel the EIN and then get a new one for your LLC. Cancelling and then getting a new EIN is usually easier and guarantees “cleaner” records (less confusion). Hope that helps.

  6. Good morning Matt,

    In “2016” I received certified mail stating that 25% of a previous job wages were going to be garnished, but I had already changed employment. After research I discovered that in “2010” a judgement was filed in Santa monica, CA civil court against me. I never received any previous notification. The judgment was for some apartment the I never lived in. I’m living in the state of Arizona. I have not heard anything about this matter since 2016. My question is if I open a business account with my new LLC, will they be able to freeze my account, because my ssn is attached to my business checking account? and if the judgement was filed in “2010′ is there some sort of statue of limitations? I thought it was 7 years in California.


    • Hi Tiey, we’re not able to comment on questions such as this as you’ll need to speak to an attorney. Thank you for understanding.

  7. Hey Matt, I live outside the United States and run a logistics/freight company, I am considering forming an LLC and looking at Arizona, Wyoming, Delaware and Texas. Presently, we don’t make any income in the USA as all our clients purchase items in the USA and ship out to countries in Africa and Asia. Where would you advice, we form our LLC? Considering filling fees, annual reports and taxes.

    Presently, we use a 3rd party logistics company operating out of Texas and Georgia to get shipments out of the USA would this have any influence on where we should form our LLC?

    Thank you

    Great job by the way

    • Hey Dave, I would recommend looking further into tax considerations (federal and state). If you’re a non-US resident, you may have Effectively Connected Income (ECI) and/or there is a chance you may be “engaged in trade or business with the U.S.” via an independent agent. If you’re a US citizen, it’ll depend on how you file your federal return, where your tax residency is established, and more. However, this is not a subject we get into so you’ll need to speak with an accountant and/or an attorney. Thank you for your understanding.

  8. Hello Matt,

    I’m considering forming an LLC for a small game studio. If I had a partner in another state, does it matter which state the LLC is formed? No sales would occur for quite a while and when they do, it would only be on an online marketplace. Also, in Arizona, is there ever a renewal for the LLC or is it always considered “active”.

    • You can usually pick either state unless there is substantially more business activity taking place in one state versus the other. An Arizona LLC has no annual report requirements or annual fees that need to be paid to the Arizona Corporation Commission (AZCC) and therefore, you’re correct, it will perpetually be in existence. Hope that helps!

  9. Hi.

    I’m a Canadian citizen/resident, looking to form a LLC in the US.

    Can a non-US citizen form a “domestic LLC” in Arizona with a Arizona Statutory agent — use their address as the principal business address?


    • Hey Justin, yes, a non-US citizen can form a Domestic LLC in Arizona using the Commercial Statutory Agent’s address as the LLC’s Principal Address (if said Commercial Statutory Agent allows), however, LLCs owned by Canadians usually face double taxation (the IRS and the CRA). We don’t know the details, but I’d discuss this with a professional who works both sides of the border. I believe another entity may be a better choice from a tax perspective. Feel free to share any findings if you’d like. I’m curious to hear what you come up with. Thanks.

  10. Hello Matt,

    Is there any benefit to creating personal LLCs for each member of a new LLC that we will be creating together? I have heard people state that having this extra level of ownership increases protection against liability but are there also tax benefits? I hope this question makes sense lol.


    • Hi Talbot, we’re not sure about any tax benefits from this. We recommend speaking to a few accountants. Feel free to share any findings if you’d like. Thanks.

  11. Matt,

    Excellent guides, thank you. I am forming an LLC with 2 partners in order to passively invest into a fund that invests in Real Estate. My research says that because we are passive investors, we would not trigger “doing business” in any particular state. We’ll be subject to state taxes in states where the fund generates rental income from properties. However, state taxes shouldn’t guide where we form the LLC, rather, the “doing business” principle should because that’s what would trigger us having to register the LLC in other states. Because of this scenario, we are looking to form the LLC in a state with the lowest fees possible, even if we have to hire a registered agent (Arizona, New Mexico, or Idaho). Is this consistent with your understanding of LLC filings?

    • Hi Juan, I believe your findings are correct, but I’d recommend running them by a tax and/or legal professional. Thanks.

  12. Hello Matt,
    First thank you for the wealth of information on your site.

    I am a current independent contractor working with multiple companies all from the comfort of my home. And since I am legally considered being in business for myself as a independent contractor I have definitely decided to create a single member LLC in Arizona the state I reside in, for the benefits the llc offers. Here is my question:

    As your article states I might need certain business license and permits for operating my business. Do I need a business license or permits since I’m working from home as a Independent cntractor? Would i be breaking zoning laws if i form an llc & work from home as a independent contractor? Could i be kicked out of my apartment for working as a independent contractor and owning a llc for said independent contractor business?

    • Hi Elayliah, you’re very welcome! No, you won’t be kicked out of your apartment for failure to obtain a business license, if it were required. Business licensing rules are usually administered at the municipal and/or county level, so you’ll want to contact your city (or town) and the county to check on if a business license is required for a home-based business. Hope that helps!

  13. Hey Matt!

    Thanks so much for all of the information. There are some very comprehensive guides you’ve managed to assemble here.

    I would like to know also as a US citizen with residence but not domicile (I’m living abroad long term) in Massachussets..

    I am going to manage short term vacation rentals (doesn’t require a real estate license… but maybe… another?)

    I won’t be physically in Arizona much, but I will contract out some small jobs to other firms or individuals i imagine paying independent contractors in the state doesn’t constitute as doing business in the state… but what is your opinion? Given my situation should I register my LLC in Arizona or perhaps choose another state for tax reasons?

    • Hey Landon, you’re welcome! Where an LLC should be formed (or registered as a foreign LLC) comes down to where it’s legally transacting business. With properties and rents being collected in Arizona, you’ll be doing business in Arizona. Regarding any real estate licenses/permits, you’d need to check with the municipality where the properties are located. We’re not sure. We don’t specialize in licensing and there are over 70,000 licensing jurisdictions in the US! Hope that helps :)

  14. Hello, Mr. Horwitz. Your article says that to open a bank account, a “stamped and approved” Articles of Organization are required. How to get this paper, which is to be “downloaded for free from their database”, stamped and approved? Thank you. Michael

    • Hi Michael, yes, the approved Articles of Organization that you’ll download from the Arizona Corporation Commission’s website will be stamped and approved. Hope that helps.

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