What are the steps to form an LLC?
To form a limited liability company (LLC) in the State of Arizona you need to search your proposed entity name to ensure it is available. Then, you need to prepare and file Articles of Organization with the Arizona Corporation Commission (ACC). These articles will list members, managers, your statutory agent, and more. After the ACC approves your Articles, you must publish them for three consecutive publications in a legal newspaper in the county where your entity is located. The ACC must receive confirmation of this publication. After this publication is completed, you now have a legal LLC within the State of Arizona.
What else do I need to do to set up my LLC?
You will probably need a Tax Identification Number (EIN) established. You may need a State Privilege Tax number. You may also need city business licenses depending on your type of business. I always recommend an Operating Agreement signed by all members. This agreement documents ownership interests, roles, responsibilities, voting and more. Although not required to be a legal entity under the State of Arizona, it is necessary for basic business management.
You will also need employee/independent contractor agreements, lease agreements, vendor agreements, customer agreements, insurance, and more. You may need more employment forms, policies, I-9s, and employee handbooks depending on your type of business. More than likely, you will need to enroll in E-Verify.You may need to file a state or federal trademark application. You may need a Department of Transportation number if you have heavy vehicles for your business. Depending on your business, there may be even more things necessary to set up your business.
What should my business do each year (internally)?
If you own a business, use your anniversary (or any date of
the year) to ensure your business organization is current for your business
today. You also should use this time to plan for future growth. What might this mean?
- Every business should be having an annual
meeting and document that meeting in minutes.
Changes in management/ownership and goals for the upcoming year are a
few good examples of items to be noted in minutes.
- Draft formal amendments for your business entity
with the Corporation Commission. Even
something as minor as a change of home address for a manager needs to be
amended!
- Revisit internal contracts and release
language. Have you added new employees
or independent contractors that require agreements? Have regulations changed or
have you encountered problems this past year that require your contract
language to be altered?
- Have you added a new line of business that
requires additional insurance, agreements, or licensing?
These are some of the many items you should be asking
yourself at least once a year. If have
any questions about your business organization, please contact me so that I can
help!
