Filing a DBA in Arizona (2024)

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What does DBA stand for, and how does it differ from an LLC and sole proprietorship?

In Arizona, “DBA” stands for “doing business as,” which allows a business to operate under a name different from its legal name. It’s also referred to as a trade name or assumed name. For example, The Works – Gilbert” is operating as a DBA, while its legal name is “The Works East Valley LLC.”

Understanding Business Structures: LLC, Sole Proprietorship, and DBA

Starting a business requires choosing the right structure. In Arizona, you can opt for a DBA, LLC (Limited Liability Company), or sole proprietorship, each offering different advantages:

– DBA: A name under which you operate your business, offering brand flexibility but no legal protection. See below for instructions on Filing a DBA in Arizona
– LLC: Offers personal liability protection and tax flexibility by allowing profits and losses to pass directly to your personal tax return.
– Sole Proprietorship: The simplest structure, where the business is owned by one person. It’s easy to set up but doesn’t protect personal assets from business liabilities.

Filing a DBA in Arizona (2024)

Step by step for filing a DBA in Arizona:

1. Choose a Name: Your business name must not be misleading or imply that your business is something it is not. Sole proprietorships and partnerships cannot use words like “corporation” or “limited liability.”

2. Check Name Availability: Search the Arizona Corporation Commission’s database to ensure the name is not already taken by another business.

3. Complete the Form: Obtain the DBA form from the Arizona Corporation Commission or your local county office.

4. Pay the Filing Fee: Fees typically range from $15 to $100, depending on your county.

5. Publish Your DBA: In some Arizona counties, you’ll need to publish your DBA in a local newspaper. Arizona also requires corporations and LLCs to publish a legal notice of their formation within 60 days of approval by the Arizona Corporation Commission. The notice must be published in a newspaper of general circulation in the county of your business for three consecutive issues.

Once your DBA is filed and approved, you can legally operate under that name, open a bank account, and sign contracts.

LLCs in Arizona (2024)

What is an LLC?
An LLC, or Limited Liability Company, provides personal liability protection while offering business flexibility. This means that your personal assets, like your house or savings, are protected if your business incurs debt or is sued.

Who needs an LLC?
LLCs are ideal for small to medium-sized businesses in Arizona looking for liability protection without the administrative complexity of a corporation. It’s especially suited for businesses like restaurants or rental properties, where assets could potentially become liabilities.

How to Form an LLC in Arizona (2024)

To form an LLC in Arizona, you must file Articles of Organization with the Arizona Corporation Commission (ACC). This legal document includes key information about the structure and operation of your LLC.

What to Include in the Articles of Organization:
– LLC’s Legal Name: Must comply with Arizona’s naming requirements.
– Physical Address: This can be outside Arizona but must include a statutory agent address.
– Statutory Agent: An individual or business that will accept correspondence on behalf of your LLC.
– Management Structure: Specify whether your LLC will be member-managed or manager-managed.
– Members/Owners Details: Include names and addresses of the LLC’s initial members.

Submitting the Articles of Organization
The fastest way to file is online through the Arizona Corporation Commission’s website. Alternatively, you can mail or fax the documents. For mail filings, payments must be made via check payable to the “Arizona Corporation Commission.”

Mailing Address:
Arizona Corporation Commission, Examination Section
1300 W. Washington St.
Phoenix, Arizona 85007

Fax filings require a Money-On-Deposit (MOD) account to pay the filing fee. Fax documents to (602) 542-4100 for regular service or (602) 542-0900 for expedited service.

Sole Proprietorships in Arizona

What is a Sole Proprietorship?
A sole proprietorship is the simplest way to operate a business. There is no distinction between the business and the owner (you are the business and the business is you so to speak), meaning you get all the profits but are also responsible for all liabilities.

Who needs a Sole Proprietorship?
This structure is perfect for self-employed contractors, consultants, or small business owners who want minimal paperwork and easy taxes. It’s also a great way to test a business idea before committing to a more formal structure.

After Filing a DBA in Arizona and Forming Your DBA or LLC

Once your business is established, consider the following:

– Virtual Office: If you’re not meeting clients at your home, consider using a virtual office at The Works to manage mail and book meeting rooms when needed.
– Business Cards: Get professional business cards, such as those from MOO.
– Google Business: Ensure your business is listed on Google Business to increase visibility. If you need help, contact an SEO consultant such as Ciphers Digital
– CPA for Business Taxes: As your revenue grows, consult with a CPA to manage your business taxes. They can advise on best practices for deducting expenses and may suggest filing as an S-Corp, which can provide tax benefits for some businesses.