An Arizona LLC operating agreement configures ownership division, profit distribution, management methods, member obligations, and other company regulations.
The rules will default to the State laws if you don’t have an operating agreement. It can leave you and your company vulnerable and significantly affect multi-member limited liability companies.
The document is vital even if you’re the sole owner of a company. In any disputes or legal proceedings, you’ll be more aware of how they will proceed.
NO, An LLC in Arizona doesn’t require an operating agreement, but it’s an essential internal document for your business.
Helps maintain the separation between the owner's personal assets and the business, providing clarity on how the company is run.
Facilitates the management of business relationships and internal affairs for a company with multiple owners.
The general operating agreement laws are in Title 29, Chapter 7 of the Arizona Revised Statutes:
Arizona sets some of the most affordable fees for forming an LLC:
Arizona doesn’t require LLC name registration before submitting your articles of organization. But if you want to reserve it while you prepare the documents, you can do that.
A name reservation with the Arizona Corporation Commission lasts for 120 days. It prevents any other individual or company from using your chosen name.
Check the ACC Entity Name Search. Corporation laws state you must choose a unique name that isn’t held by another business.
To apply through mail, download the application to reserve the name from the ACC website. Then, send the completed form with a cover letter to Arizona Corporation Commission, Corporations Division – Examination Section, 1300 W. Washington St., Phoenix, Arizona 85007. Or, for a faster option, apply online at the ACC website.
Once you’ve selected an agent, you must file a Statutory Agent Acceptance form. This is usually filed together with your articles of organization. You can download the Statutory Agent Acceptance Form M002 from the ACC website. Your agent will need to sign the form to accept the position officially.
Once your submission is approved, you’ll officially own a limited liability company. If you don’t receive approval, the ACC will provide a list of reasons and steps to take in the future.
You can choose to submit your entire application packet by mail:
To submit your documents online, head to the ACC website and create an eCorp account. You can upload your documents, complete the proper forms, and complete your payment.
Luckily, the operating agreement isn’t legally required in Arizona. You don’t need a lawyer to create a contract; you can use our operating agreement template. Fill in the required information and circulate the document to all company members.
After your articles of organization get approved, you’ll need your EIN application. This registration with the IRS will identify your LLC as a business for tax purposes. If you don’t have employees, you might not need an EIN.
But an EIN can be helpful in other regards, like business banking and taxation, so it’s a good idea to apply. You can apply online or by mail through the Internal Revenue Service.
A unique element of Arizona LLC formation is the publication requirement. The rule states that your notice of LLC formation should be published within 60 days in an Arizona-based newspaper.
The ACC provides a helpful list of approved newspapers to choose from. But if you’re registering your LLC in Maricopa or Pima counties, you can skip this step.
You can download our LLC operating agreement template customized for Arizona.
Start building your Arizona LLC operating agreement today!
