How to Start an LLC in Arizona (2023 Guide)

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Starting an LLC in Arizona

How to start an LLCAn 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 LLC in Arizona 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. LLC Name

LLC namesBefore filing your LLC formation paperwork (called “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 LLC name must be unique and distinguishable when compared to existing businesses registered in the state.

Search your business name: Arizona Business Entity Search Page

Limited Liability Company Designators

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 (most common)
  • L.L.C.
  • Limited Company
  • Limited Liability Company

Your Arizona LLC name cannot include a designator that makes it sound like a different type of business structure:

  • Inc.
  • Incorporated
  • Corp.
  • Corporation
  • LP
  • LLP
  • Non Profit
  • Non Profit Corporation
  • Professional LLC
  • PLLC

2. LLC Statutory Agent

Registered AgentAs 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 in the event your LLC is 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 where Service of Process and other documents can be received.

Who can be your LLC’s Arizona Statutory Agent?

Note: As we mention in our Arizona Statutory Agent lesson, who you choose will have an impact on your privacy and whether your LLC will need to meet the newspaper publication requirement.

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

  1. You can be your own Registered Agent
  2. You can ask a friend or family member
  3. Or you can hire a Registered Agent Service. Hiring a Registered Agent Service is a good idea if you want to keep your address off public records or if you don’t have an address in Arizona.

LLCU Recommendation

If you want to hire a company to start your LLC in Arizona, we recommend Northwest Registered Agent. Northwest has excellent customer service and they’ve been in business for more than 20 years. If you hire them to form your LLC, Northwest will also be your Registered Agent.

Any mail that is sent to your LLC will be scanned and uploaded to your online account. Hiring Northwest can also help keep your address off of public records and protect your privacy.

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.

(Check out our Northwest Registered Agent review to learn more)

3. LLC Articles of Organization

Articles of OrganizationThe Arizona LLC Articles of Organization (Form L010) is the document that creates your LLC. The Arizona Corporation Commission approves new LLCs for the state.

Method of filing: You can file your Articles of Organization with the Corporations Division of the Arizona Corporation Commission online or by mail.

Arizona LLC filing fee: $50

(Learn more about all the Arizona LLC Costs)

LLCU Recommendation

We recommend the expedited online filing ($85) since there is less paperwork and your LLC will be approved in 1 business day.

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. Your LLC will be approved in 14-16 business days (unless you pay the expedited fee for 1-day approval).

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 Form
  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 (plus mail time). If you send $85 for expedited processing, approval time is 3-5 business days.

Mail your documents to:

Arizona Corporation Commission
1300 West Washington Street
Phoenix, Arizona 85007

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

  • Approval Letter
  • Notice of Publication

Approved Articles of Organization: The Arizona Corporation Commission doesn’t send you a copy of your approved Articles of Organization. You’ll need to download this (for free) from their database.

We’ll walk you through the whole process in our free, step-by-step lesson on how to file Arizona 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. LLC Operating Agreement

Operating AgreementAn Arizona 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. This contract will also document how your LLC is managed, how profits are split, how taxes are paid, and more.

Having an Operating Agreement for your Arizona LLC helps prove that the company is a separate business entity from the LLC 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 Operating Agreement is an “internal document”. Meaning, you don’t have to send a copy to any government agency. You just need to keep a copy of the document with your LLC business records and give a copy to any other LLC Members, if applicable.

Download an Arizona LLC Operating Agreement: We provide free Operating Agreement templates that you can download here: Arizona LLC Operating Agreement.

5. Apply for an EIN for your LLC

EIN Number for an LLCAn EIN (Employer Identification Number) is obtained from the Internal Revenue Service (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 Identification Number. They all mean the same thing.

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. Instead, an Arizona LLC can be taxed 4 different ways with the IRS. 2 of these occur by default when you get your LLC’s EIN. And 2 require you to make a special election (file a form after you get 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.

Note: 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.

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. LLC Annual Report

LLC Annual ReportNo 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.

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

LLC PublicationArizona 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). Three (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 has a physical street address.

We have instructions and a list of approved Arizona newspapers here: Arizona LLC publication requirement

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

8. Business Licenses & Permits

Business LicenseYour 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. LLC Taxes

LLC TaxesThe 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).

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.

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

Single-Member LLC

Single-Member LLCs are 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

Multi-Member LLCs are 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.

State income taxes

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)

This applies to Multi-Member LLCs. For most, it’s due by March 15th each year.

Arizona Corporation Income Tax Return (Form 120)

This applies to LLCs taxed as a C-Corporation. 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)

This applies to LLCs taxed as an S-Corporation. 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

Tip: Save time by hiring an expert. We recommend using TaxJar. They'll help you register for, collect, and pay sales tax.

Reseller Certificate

If your 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 or 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 all required taxes.

10. LLC Business Bank Account

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

It’s best practice to have a business checking account for your LLC to maintain your personal liability protection. This keeps your business finances separate from your personal finances. Using a personal bank account for your LLC is called “commingling of assets” and this can lead to personal liability issues.

Having a separate LLC bank account in Arizona 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)

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

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.

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

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

Arizona State Agencies

Arizona Corporation Commission (AZCC)

(LLC formation 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)

How to Start an LLC in Arizona FAQs

How much does it cost to open an LLC in Arizona?

It costs $85 to start an LLC in Arizona if you file online, or $50 if you file by mail. This is the fee paid to the Arizona Corporation Commission for filing LLC Articles of Organization.

You may also need to pay for municipal or industry-specific licenses and permits, or get a state sales tax permit. The costs of business licenses and permits vary widely by municipality. Reach out to your local municipality if you have any questions about your LLC’s unique needs.

If you have an LLC formed in another state, but you want to conduct business in Arizona, you’ll need to register that out-of-state LLC in Arizona. This is known as a Foreign LLC registration.

You can find Foreign LLC fees on this page: Foreign LLC fees by state.

Do I need to publish my LLC in Arizona?

Yes, all Arizona LLCs must notify the public of its formation by publishing an ad in a single newspaper for 3 consecutive publications. The newspaper must be located in the same county as the address you put down for your Statutory Agent. And it must be published within 60 days of your LLC being approved.

The exception to this is for Statutory Agent addresses located in Maricopa or Pima counties.

Learn more about the requirements and fees in our lesson on Arizona LLC Publication Requirements.

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.

34 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. Hi, Matt. My husband and I have two rental properties and are considering putting each one into their own LLC. We have been told that our LLCs should be put into a revocable trust — with a holding company in between the two.
    Though we have heard, we should do that, we haven’t heard a reasoning for it. And how does an LLC get put into a revocable trust, anyway? Thank you.

  2. Hi Matt,
    We are looking at creating a multi-member LLC in Arizona for a houseboat trailer. This is not a business or for profit, just an asset. Do we use the same process to create the LLC as if it was a business? Or is there a better way to do this? Any help would be greatly appreciated. Thanks!

    • Hi Deanna, yes, the process of LLC formation in AZ is exactly the same, whether the LLC will operate a business or simply hold title to assets.

  3. 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.

  4. 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 :)

  5. 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!

  6. 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.

  7. 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.

  8. 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.

  9. 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!

  10. 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.

  11. 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.

  12. 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.

  13. 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.

  14. 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.

  15. 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 :)

  16. 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.


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