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There are many benefits to forming an LLC vs. operating as a sole proprietorship. A single-member LLC is generally shielded from personal liability for debts associated with the business. Note: Single-member LLCs must be careful to avoid commingling business and personal assets.
§§ 29-3102 and 29- 3105 through 29-3107. An operating agreement is not required by statute. If there is not operating agreement, then the LLC statutes will govern how the LLC conducts its affairs. Your needs may not be addressed by those statutory provisions, and, therefore, you might want an operating agreement.
If you have a Corporation, the statutes indicate that your Known Place of Business must be a physical address within Arizona. For Corporations, you must use a physical street address. P.O. Boxes and personal mailboxes are not permissible.
If you're looking to relocate and start your new business, Wyoming is a great choice. Not only is it the first state to make LLCs a legal business structure in 1977, but Wyoming also has no state income tax, a cheap sales tax rate which currently sits at 4% and a relatively inexpensive LLC filing fee of $100.
A limited liability company that makes a valid federal election to be taxed as a corporation must file an Arizona corporate income tax return. A single member limited liability company that is disregarded as an entity is treated as a branch or division of the owner, and is included in the tax return of its owner.
On September 1, 2020, the Arizona Limited Liability Company Act, which became law in 2018, repealed Arizona's LLC statutes and replaced them with a new and "improved" model that is more consistent with the laws of most other states - but also poses risks for unwary LLC managers and members.
Operating Agreements are not required in Arizona, but it's the one document you can have to clarify business management.
Yes. The same person can be both the only member and the only manager. What if my LLC has a "managing member"? The records of the Arizona Corporation Commission will reflect only members or managers ? no ?managing member? can be listed.