Form a Partnership in Arizona
Everything you need to know about forming a Partnership in Arizona. Filing fees, requirements, timeline, and step-by-step guidance.
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How to File
Choose Your Partnership Type
Decide between a General Partnership (GP), Limited Partnership (LP), or Limited Liability Partnership (LLP). General partnerships require no state filing, while LPs and LLPs must register with the Arizona Secretary of State.
1-2 hours
Select and Verify a Business Name
Choose a partnership name and search the Arizona Secretary of State's business entity database to confirm availability. LPs and LLPs must include required designators such as 'Limited Partnership' or 'L.P.' in their name.
30 minutes
Draft a Partnership Agreement
Although not legally required in Arizona, a written partnership agreement is strongly recommended to define each partner's roles, profit sharing, decision-making authority, and procedures for dissolution or changes in ownership.
2-5 hours
Designate a Statutory Agent
Appoint a statutory agent (registered agent) with a physical Arizona street address to receive legal and official documents on behalf of the partnership. This is required for LPs and LLPs registering with the state.
30 minutes
What's Next After Filing
Once your Partnership is officially formed, you'll want to complete these important steps:
- •File Formation Documents with the State — For Limited Partnerships, file a Certificate of Limited Partnership with the Arizona Secretary of State online or by mail with the $10 filing fee. General partnerships do not need to file but should register a Trade Name if operating under a name other than the partners' legal names.
- •Obtain an EIN from the IRS — Apply for a Federal Employer Identification Number (EIN) through the IRS website at no cost. An EIN is required for opening business bank accounts, hiring employees, and filing taxes.
- •Obtain Necessary Licenses and Permits — Register with the Arizona Department of Revenue for state tax purposes and obtain any required local business licenses or industry-specific permits from the city or county where the partnership operates.
Advantages
- ✓Simple and inexpensive to form — general partnerships require no state filing fees or formal registration in Arizona
- ✓Pass-through taxation allows profits and losses to flow directly to partners' personal tax returns, avoiding double taxation
- ✓Flexible management structure with no required formalities such as annual meetings or resolutions
- ✓Shared resources, skills, and capital contributions among partners can strengthen the business
Considerations
- •General partners face unlimited personal liability for business debts, obligations, and the actions of other partners
- •Partnerships dissolve upon the death, withdrawal, or bankruptcy of a general partner unless the partnership agreement provides otherwise
- •Raising capital can be difficult compared to corporations, as partnerships cannot issue stock or attract outside investors as easily
- •Potential for disputes between partners, especially without a comprehensive written partnership agreement in place
Annual Obligations
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