Arizona is a great place to live and work. It has constant sunshine, nearby mountains, and a lot of opportunities. Are you thinking about moving to the Copper State to start a business? Before you decide to establish a business in Arizona, you need to come up with a business name.
Arizona, like most states, has rules for new business names, one of which is that no two businesses can have the same name. As a result, every entrepreneur must check and see if the name he or she likes is available. We created a guide to help you find available business names in Arizona and offer advice on how to claim your name and get your LLC started on the right foot.
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How to check business name availability in Arizona
Someone starting a small business in Arizona can’t just pick a name and run with it. You must make sure the state will accept the name according to their rules and regulations. The primary factor in selecting a business name is that no one else is using the same exact name. To do that, you will need to check name availability within the State of Arizona.
1. Go to the state website
In Arizona, you’ll visit the Arizona Secretary of State website and conduct an entity search.
2. Fill in search terms
You’ll enter the name that you like under ‘entity name.’ While there are other filters, this is the only one you need.
3. Run the name check
The results will pop up and you will see a list of businesses with similar or exact names. This indicates the names you can’t use.
You can’t make a small modification to a name either. For example, you can’t add an “s” or change one letter of a name. The state requires all business names to be “distinguishably different” so if your name came up in the search results, you’ll need to come up with something new.
4. Consider reserving a name
After running an Arizona business name search, you have two options: You can reserve a name or you can register the name. You should reserve your name if you aren’t planning to set up the business immediately.
Arizona allows business owners to reserve a name for 120 days for a $45 non-refundable fee. ($10 fee + a $35 expedite fee).
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Arizona but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Arizona business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Arizona company?
As you research available business names in Arizona, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Arizona business
Ready to set up your business in AZ? Here’s what you do:
1. File your Articles of Organization
Visit the Arizona Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Arizona or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Arizona, the cost is $60.
4. Wait for approval
Arizona will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Arizona small business facts
Arizona is a growing state and has a number of industries within it from medical to aeronautics. It has always been considered a thriving state to do business. However, you will want to check out these statistics from the U.S. Business Administration before you decide to head west.
- Arizona has 571,495 small businesses making up 99.4 percent of all businesses in the state.
- 1 million employees within the state are employed by small businesses making up 43.7 percent of the workforce.
- Arizona’s unemployment rate is 5.1 percent, according to 2019 numbers, which are the last available. It rose from 3.8 percent the previous year.
- The western state has an estimated 7,405 companies that export goods. Numbers show that 6,462 are small firms. That equates to 87.3 percent of all businesses that do international export. Small companies generated 24.7 percent of the state’s total $19.6 billion in total exports.
- Top industries in Arizona are healthcare and social services, accommodations and food services, construction, retail trade and professional, scientific and technical services.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Arizona:
Why is it so important to check on business name availability?
Arizona will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
What if I don’t want to pay an expedited fee?
Those who just want to pay the $10 filing fee to reserve a name must submit a paper application to reserve a business name. Paper applications can be mailed. (The Secretary of State office isn’t currently allowing in-person business). There is a standard processing time for all requests mailed in. Processing times are posted on Mondays at www.ecorp.azcc.gov. All filing fees are non-refundable.
Are business name reservations transferable?
Yes, a business name can be transferred to another person within 120 days of the effective reservation period. A name transfer doesn’t extend the reservation period and a transfer can’t occur after the reservation period ends.
Can I cancel a name reservation?
Yes, you can cancel a name reservation by filling out a Notice of Cancellation Of Approved Limited Liability Company Name Reservation form found at www.ecorp.azcc.gov. However, you will not get any refund of your name reservation fee.
Does Arizona have any name requirements?
Yes, the state will have an examiner look at proposed business names to make sure they fit requirements. Some of the requirements include the minimum requirement that those under a limited liability corporation must have that or the initials in its name.
Names can not have words like incorporated, association, or corporation or their abbreviations without first getting written consent from the Arizona Department of Financial Institutions. For a complete list of Arizona name requirements, go to www.azleg.gov.
It’s best to do a thorough research of all state requirements before trying to reserve or register a name. Paying an expedited fee will immediately reserve the name but that doesn’t mean it is approved. Paying a fee doesn’t mean it’s approved. All names must be approved individually by a state examiner. You will receive an approval letter in the mail once your proposed business name has been examined.
Are name reservations renewable?
No, names that are reserved are held for 120 days. They can’t be renewed once they expire by the same person who originally put them on reserve with the Arizona Corporation Commission. However, someone in your family can reserve the name again for you. It just has to be some other name besides the original person who claimed it the first time.
Is my company formed once I reserve an LLC name?
No, reserving a name just sets aside that name so others can’t use it during the 120 time period. This gives you time to get your LLC company formed. To form an LLC, you must file Articles of Organization with the Arizona Corporation Commission and be approved before you are truly an LLC. Once complete, your name will then appear on public records with the Arizona Corporation Commission.
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