In order to form an LLC correctly, I would strongly urge you to consult an attorney and a C.P.A. There are legal and tax consequences that you need to consider carefully. LLC formation in Arizona requires the following:

<1i>Select and reserve the name of the LLC.

<1i>Prepare the Articles of Organization of the company and the consent of statutory agent to file with the Arizona Corporation Commission (ACC).

<1i>Prepare the ACC cover sheet that must be filed with the Articles.

<1i>File the Articles with the ACC on an expedited basis (recommended).

<1i>Receive the approved articles from the ACC.

<1i>Obtain a federal employer ID number.

<1i>Open the company's bank account.

<1i>Arrange to publish the Articles of Organization in a newspaper in the appropriate county.

<1i>Obtain an Affidavit of Publication of the Articles of Organization and mail it to the ACC within the time required for filing the Affidavit.

<1i>Decide how the LLC will be taxed.

<1i>An LLC can be taxed as federal income tax paying entity depending on how it chooses to be taxed.

<1i>Sole member LLCs may be taxed as a pass-through for federal income tax purposes, as a sole proprietorship, partnership, or corporation. Multiple member LLCs may elect to be taxed for federal income tax purposes as a partnership or a corporation.

<1i>LLCs that are taxed as a partnership are not federal income tax paying entities. LLCs that are taxed as corporations are federal income taxpaying entities.

<1i>If the LLC is taxed as a partnership, the profits and losses pass through to the members prorata based on their percentage of ownership, or as otherwise provided in the partnership agreement and the special allocation of profits and losses. If the LLC is taxed as a C corporation, the LLC reports profits and losses as a tax-paying entity rather than the members.

Jo Ann Joy, Esq., MBA, CEO Copyright 2006 Indigo Business Solutions. All rights reserved. joannjoy@IndigoBusinessSolutions.net, Phone (602) 663-7007, Fax (602) 324-7582 For more information about these and other important business topics and for legal consultation, please visit our website at http://www.IndigoBusinessSolutions.net Copyright 2006. Indigo Business Solutions is a registered trade name. The future of your business starts here.

Jo Ann Joy

Jo Ann Joy is the CEO and owner of Indigo Business Solutions. She has a law degree, an MBA, and a degree in Economics. Her legal background includes commercial, corporate, bankruptcy and real estate law. She has expertise in accounting, financial planning, mortgages, marketing, product development, and business strategies.

Jo Ann ran a successful business for 10 years, and she has written and given presentations on many different legal and business subjects. Jo Ann started Indigo Business Solutions, and she strives to help small businesses make decisive improvements in their start-up, direction, growth, and performance. Jo Ann is passionate about helping businesses succeed.

Indigo Business Solutions is a ?one stop shop? for small businesses. We differ from other business consulting firms, because we offer comprehensive legal and business counseling. We work with our clients to develop strategies that create value and competitive advantage. Jo Ann is not a traditional attorney. Rather, she is a strategic business attorney who works closely with clients to create and implement strategies that will greatly improve their performance and success.

Jo Ann will her talents, expertise, and education to inspire enterprising and imaginative people to make their goals a reality and enjoy professional and personal growth. She promises to consistently deliver quality and reliable service to earn your trust and create lasting relationships. She promises that she will make a positive difference in your business.

If you are not getting what you want from your business or if you want to reach higher goals, Indigo Business Solutions delivers the strategic planning that will provide you with the right tools and methods to grow and gain market share. Please look at our website and found out how we can help you expand and achieve your goals.

We offer straight talk, sound advice, and practical solutions. Your small business deserves to be a success, and