Who can be Statutory Agent for your Arizona LLC? | LLC University®

Last updated July 26, 2020

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Arizona LLC Statutory Agent
(aka “Registered Agent”)

How to form an LLC in Arizona
This Quick Start Guide is a brief overview of how to form an LLC in Arizona.

Detailed Lessons:

 

Arizona LLC Costs:
Arizona LLC formation: $50 (regular) or $85 (expedited)
Arizona LLC annual report: none

Need help?
Hire a reliable service to form your Arizona LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

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Before forming an LLC, you need to choose an Arizona Statutory Agent.

What’s the purpose of an Arizona Statutory Agent?

The purpose of an Arizona Statutory Agent is to receive Service of Process for your LLC.

Service of Process is the delivery of legal documents, such as a notice of a lawsuit. The word “process” means a legal document or a collection of legal documents. And “service” is the act of serving, or delivering those documents. Examples of Service of Process are a court summons, a complaint, a writ, and a subpoena.

An Arizona Statutory Agent is simply the person, or company, who agrees to receive any Service of Process sent to your LLC (and then forward it to you). Your Arizona Statutory Agent also gets listed in your Articles of Organization, the document filed with the Arizona Corporation Commission that creates your LLC.

Statutory Agents serve a critical role in how the Arizona court system works. They allow Process Servers, people who deliver court and legal documents, to create an official record that something was delivered (similar to how Certified Mail Return Receipt works).

We hope that your LLC never receives Service of Process, like notice of a lawsuit, but we think it’s important to explain why Statutory Agents exist in the first place.

Additionally, the Arizona Corporation Commission uses your Statutory Agent as your LLC’s main “point of contact” for receiving notices from the state.

(The Arizona Corporation Commission is the agency that regulates the creation of businesses.)

As per the Arizona LLC Act (Section 29-3115), your Statutory Agent must have a physical street address located in Arizona. An Arizona Statutory Agent can’t use a PO Box address.

If your Arizona Statutory Agent will be a person:

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

Note: The term Statutory Agent and Registered Agent mean the same thing. We may use these terms interchangeably. Statutory Agent is the official term used in Arizona, while Registered Agent is the more commonly used term in the industry.

Arizona Statutory Agents can’t use a Personal Mailbox (PMB), Commercial Mail Receiving Agency (CMRA), or any other mailbox service

Your Arizona Statutory Agent must have a physical street address located in Arizona.

Again, their address cannot be a PO Box.

Furthermore, the Statutory Agent’s address cannot be a Private Mailbox (PMB) or Commercial Mail Receiving Agency (CMRA).

Some examples of PMBs and CMRAs include, but are not limited to:

  • Biltmore Mailboxes Plus
  • iPostal1
  • Mailbox Plus
  • Pak Mail
  • Pack N’ Ship
  • Ship Rite
  • The UPS Store
  • and any other mailbox rental facility

Can I be my own Statutory Agent in Arizona?

Yes, you can be your own Statutory Agent in Arizona.

You actually have 4 options for who can be your Statutory Agent in Arizona.

You can save money by being your own Statutory Agent. However, there are some risks with being your own Statutory Agent.

What are the risks to being my own Statutory Agent in Arizona?

The risks of being your own Statutory Agent in Arizona are:

  • missing an important notice from the state,
  • administrative dissolution, and
  • missing service of process (and therefore a potential default judgment).

These risks are more likely to occur if you:

  • don’t have a reliable address,
  • don’t keep up with your mail,
  • travel or leave town for extended periods of time, or
  • move and forget to update your address with the AZCC.

We’ll explain a few of these below.

Missing an important notice from the state

You want to make sure you receive all important notices sent from:

  • the Arizona Corporation Commission,
  • the Arizona Department of Revenue
  • and any other state agency.

Notices sent from state agencies often have actions that need to be taken by a certain deadline.

And in some cases, there may be penalties and fees for not meeting those deadlines. Therefore, it’s important to make sure you have a reliable Statutory Agent address for your LLC to ensure you receive all of your mail.

Administrative dissolution

As per Section 29-3708 of the Arizona LLC Act, if you move and don’t update your Statutory Agent address within 60 days, the state has the power to administratively dissolve (shut down) your LLC.

To clarify, the state isn’t looking over your LLC every single day, so this potential administrative dissolution isn’t going to automatically occur 60 days after you move. However, if the state finds out that your Statutory Agent address isn’t up to date, and they attempt to notify you with no success, then they have the power to shut down your LLC.

Default judgment

If there is a lawsuit against your LLC, a process server will make multiple attempts to serve you and deliver the court documents.

However, if they are unsuccessful in serving you, Service of Process can be delivered by Certified Mail or by publishing a notice in the newspaper. Both of these methods mean the court notices and/or documents were “delivered” to you, even if you didn’t receive them.

And as per Rule 55 of the Rules of Civil Procedure, the person suing your business will be able to argue their case without you being there to defend yourself. In these situations, the person suing your business usually wins and the court enters a default judgment against your company.

In conclusion:

While the above risks do exist, they don’t occur all that often. Having said that, there are some other Statutory Agent options worth considering.

Which Arizona Statutory Agent option should I choose?

Option 1: You

You can be your LLC Statutory Agent as long as:

  • you are a resident of Arizona, and
  • you have a physical street address in Arizona.

You also shouldn’t mind your address being listed on public records.

Why choose this option? This is a good option to choose if you would like to save money (since you won’t need to hire a Commercial Statutory Agent).

Option 2: Friend or family member

A friend or family member can be your LLC Statutory Agent as long as:

  • they are a resident of Arizona, and
  • they have a physical street address in Arizona.

They also shouldn’t mind their address being listed on public records.

Why choose this option? This is a good option to choose if you aren’t a resident of Arizona, but want to save money (since you won’t need to hire a Commercial Statutory Agent).

Option 3: Attorney or other professional

Some attorneys offer Statutory Agent services at no additional charge (if you hire them for other LLC-related services). And some attorneys charge an annual service fee for Statutory Agent services.

Why choose this option? This is a good option to choose if you are already working with an attorney and you like their services.

There are some downsides:

  • Many attorneys don’t have mail forwarding, scanning, and email notification in place (like a Commercial Statutory Agent).
  • The attorney’s address may not help you avoid the newspaper publication requirement (discussed below).

Option 4: Commercial Statutory Agent

A Commercial Statutory Agent (aka Commercial Registered Agent) is a company that specializes in receiving mail and Service of Process for your LLC.

Commercial Statutory Agents usually charge $100 to $300 per year. After they receive your mail, they’ll forward it to you or upload it to your online account.

Why choose this option? This is a good option to choose if you:

  • aren’t a resident of Arizona,
  • don’t have a friend or family member’s address to use,
  • don’t want to hire an attorney, or
  • don’t want your address listed in the Articles of Organization.

Additionally: If you choose a Commercial Statutory Agent located in Pima or Maricopa county, you don’t have to fulfill the Arizona LLC newspaper publication requirement.

If you’d like to hire a Commercial Statutory Agent, the company we recommend is Northwest Registered Agent ($125 per year).

Northwest Registered Agent

Northwest Registered Agent is our personal recommendation and the service we use because:

  • they have excellent customer service
  • they have been in business for over 20 years
  • they keep your address off of public records

Keeping your address off of public records:
In addition to being the Statutory Agent for your LLC, Northwest will also let you use their office address throughout your entire Articles of Organization.

More specifically, you can use Northwest’s address in the following address fields:

  • Statutory Agent’s Physical Address
  • Statutory Agent’s Mailing Address
  • LLC’s Principal Address
  • Member/Manager’s Address(es)

To clarify: This doesn’t mean your name won’t appear on the Articles of Organization; it just means your address won’t. The reason for this is that Arizona requires the Members or Managers‘ name(s) to be listed on the Articles of Organization.

If you hire Northwest Registered Agent, any state notices or Service of Process that is sent to your LLC will be scanned by them and uploaded to your online account.

Additionally, because their office is located in Pima County, you don’t have to take care of the LLC newspaper publication requirement. (The newspaper publication requirement is based on the address of your Statutory Agent.)

Special discounted pricing for LLC University® readers

Northwest usually charges $100 + state fees to form an LLC. However, we’ve negotiated a discounted rate (60% off) for LLC University® readers.

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

(To learn more about Northwest, check out our Northwest Registered Agent review.)

Next Step: Articles of Organization

Once you determine who will serve as the Statutory Agent for your Arizona LLC, you can then proceed to the next lesson: Arizona LLC Articles of Organization.

If you plan on hiring a Commercial Statutory Agent, please do so before going to the next lesson. You’ll need their address for your Articles of Organization.

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Matt Horwitz
Founder & Educator, LLC University®
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.

2 comments on “Arizona Statutory Agent”

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 I will be going to work for a company who lends out it’s money to investors to purchase properties. I will be an independent money broker for them but I will need to form an LLC to conduct this business. I was thinking of forming in Arizona since it seems less cumbersome and I will be working from FL & NY. What would be the complications if I decided to purchase investment properties in FL & NY and held them in my Arizona LLC? If I should go ahead and form the AZ LLC should I use Northwest Registered Agent to set things up and do you know if they would handle the publication issue required by AZ?
    Thanks
    Thomas

    Reply
    • Hey Thomas, it sounds like you’re talking about two businesses. For the independent money broker, you should form the LLC in your home state, the state where you’re working from. Check out our article on best state to form an LLC. For real estate LLCs, the LLC that owns the property should be formed in the state where the property is located. You can also have the LLCs that own the property owned by a parent LLC in your home state. This is sometimes common in real estate investing. I also recommend reading Domestic LLC vs Foreign LLC. Hope that helps!

      Reply

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