Formation of a startup in Arizona and why Eli likes a LLC

1. COMPANY
FORMATION
ELI CHMOUNI

2. DISCLAIMER
I am not a lawyer
I am not giving legal advice
Please consult with an attorney

3. COMPANY TYPES
Sole Proprietorships
Partnerships
Limited Liability Companies (LLCs)
S Corporations
C Corporations

4. SOLE PROPRIETORSHIPS
Owner remains personally liable for lawsuits
filed against the business.
No state filing required to form a sole
proprietorship.
Easy to form and operate.
Owner reports business profit and loss on their
personal tax return.

5. PARTNERSHIPS
Partners remain personally liable for lawsuits filed against the
business.
Usually no state filing required to form a partnership.
Easy to form and operate.
Owners report their share of profit and loss in the company on
their personal tax returns.

6. S CORPORATIONS
Independent legal and tax structures separate from their owners.
Help separate your personal assets from your business debts.
Owners report their share of profit and loss in the company on
their personal tax returns.
Limits on number of shareholders, who must be U.S. citizens or
residents.
Must hold annual meetings and record meeting minutes.

7. C CORPORATIONS
Independent legal and tax structures separate from their owners.
Help separate your personal assets from your business debts.
No limit to the number of shareholders.
Taxed on corporate profits and shareholder dividends.
Must hold annual meetings and record meeting minutes.

8. LIMITED LIABILITY COMPANIES
(LLC)
Independent legal structures separate from their owners.
Help separate your personal assets from your business debts.
Taxed similarly to a sole proprietorship (if one owner) or a
partnership (if multiple owners).
No limit to the number of owners.
Not required to hold annual meetings or record minutes.
Governed by operating agreements.

9. LLC IN AZ
Arizona Corporation Commission http://www.azcc.gov/

10. NAME SEARCH
Visit
http://starpas.azcc.gov/scripts/cgiip.exe/WService=wsbroker
1/connect.p?app=names-report.p to search for the name.
Your LLC name should be follow by LLC
For example BlueDream Group, LLC
Name reservation VS signing up directly

11. DOCUMENTS
Reserve the LLC name
http://www.azcc.gov/Divisions/Corporations/forms/starpas/fo
rmsSTPS/L001-Application-to-Reserve-LLC-Name.pdf

12. ARTICLES OF
ORGANIZATION
http://www.azcc.gov/Divisions/Corporations/forms/starpas/fo
rmsSTPS/L010-Articles-of-Organization.pdf

13. MANAGER MANAGED VS
MEMBER MANAGED
Manager:
http://www.azcc.gov/Divisions/Corporations/forms/starpas/fo
rmsSTPS/L040-Manager-Structure-Attachment.pdf
Member:
http://www.azcc.gov/Divisions/Corporations/forms/starpas/fo
rmsSTPS/L041-Member-Structure-Attachment.pdf

14. ADDITIONAL
DOCUMENTS
Organizer:
http://www.azcc.gov/Divisions/Corporations/forms/starpas/fo
rmsSTPS/L042-Organizer-Attachment.pdf
Agent:
http://www.azcc.gov/Divisions/Corporations/forms/starpas/fo
rmsSTPS/M002-Statutory-Agent-Acceptance.pdf

15. COVER AND FEES
Cover:
http://www.azcc.gov/Divisions/Corporations/forms/starpas/fo
rmsSTPS/CFCVLR.pdf
Expedited VS Slow

16. FILED… NOW WHAT
Confirmation for Newspaper Publication
Choose a Newspaper
File Notice of Publication (Capitol Times)

17. GET AN EIN
http://www.irs.gov/Businesses/Small-Businesses-&-Self-
Employed/Apply-for-an-Employer-Identification-Number-
(EIN)-Online

18. GROW
YOUR
BUSINESS

19. FAQ
LIMITED LIABILITY COMPANIES
1. How do I form a limited liability company (“LLC”)?
2. Can I form a nonprofit LLC?
3. Should I form a professional LLC?
4. Must the LLC have members?
5. Can I have a single member LLC?
6. Can the same person be the only member and the only manager?
7. What if my LLC has a “managing member”?
8. What is the difference between members and managers of an LLC?
9. What is “management structure”?
10. What is a manager-managed LLC?
11. What is a member-managed LLC?
12. What is an operating agreement?
13. Does the operating agreement get filed with the Arizona Corporation Commission?
14. How do I change the address of the LLC?
15. How do I change members or managers?
16. How do I amend the articles of organization?
17. How do I move my LLC to another state?
18. How do I report a bankruptcy?
19. Who can sign documents for LLCs?
20. Statutory agent?
21. How do I get a Certificate of Good Standing?
22. How can I convert my LLC to a corporation?