It is difficult to start and grow a business.  Usually, the last thing a new business owner wants to deal with is figuring out how to comply with every law.  However, it is important not to overlook basic legal requirements when setting up a business.  Doing so may doom your business to fail before it ever begins.  Here are some things to consider when starting a business.

  • How do I form my LLC?

It is first important to determine if an Limited Liability Company (LLC) is the right type of  business entity for you.  If it is, then in order to form a LLC you must register it with the Arizona Corporation Commission.  This is not a difficult process but you must fill out the forms correctly.  Otherwise you risk delays or issues stemming from misfiling these forms.  Also be sure check if the name you want for your business entity is already in use before filing (search here).

  • Do I need an operating agreement?

Arizona does not require filing an operating agreement, see A.R.S. § 29-682.A.  However, just because it is not required does not mean that it should not be done.

  • How do I ensure that my business entity is recognized by the IRS for tax purposes?

Each employer conducting business must receive an Employer Identification Number.  Individuals can now apply online on the IRS Website.

  • What types of business licenses do I need to operate my business?

Unfortunately, there is not just one business license that allows a person to operate a business in the state of Arizona. The Arizona Department of Revenue gives a guide on what types of licenses are required for operating a business in Arizona.

These are just some of the questions to be asked when forming an LLC.  Other laws governing LLC’s are found in Section 29, Chapter 4 of the Arizona Revised Statutes.  A skilled attorney can help you navigate the pitfalls of starting and growing your business. Please contact an experienced attorney at Udall Shumway PLC if you have questions.


This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please feel free to contact Timothy F. Coons at  480.461.5370, log on to, or contact an attorney in your area.