Quick answer

Quick Answer

To start an Arizona LLC, you must file Articles of Organization with the Arizona Corporation Commission (A.C.C.) and pay a $50 filing fee. You are legally required to appoint a Statutory Agent (registered agent) with a physical Arizona address. Arizona does not have an annual report requirement or a franchise tax, making it very cheap to maintain. However, if your business is outside of Maricopa or Pima counties, you must pay to publish a Notice of Formation in a local newspaper.

Arizona LLC filing fee

The fee to file your Articles of Organization in Arizona is a flat $50. You can file this online via the A.C.C. eCorp portal or by mail. Arizona standard processing times can be slow (14-16 days), but they offer expedited processing options for an additional $35 to $400 depending on the speed required.

Step 1: Choose a name

Your LLC's name must be distinguishable from all other registered businesses in the A.C.C. database. The name must also contain the phrase "Limited Liability Company" or an abbreviation like "LLC," "L.L.C.," or "L.C." You can perform a free name search on the A.C.C. website to check availability.

Step 2: Appoint a registered agent

Arizona uses the term Statutory Agent instead of "Registered Agent." This person or company must have a physical street address in Arizona (P.O. Boxes are not allowed) and be available during normal business hours to accept legal documents. The Statutory Agent must actually sign an acceptance form before the LLC can be formed.

Step 3: File formation documents

To legally form your LLC, you must file Articles of Organization with the Arizona Corporation Commission. You'll need to provide the LLC's name, the Statutory Agent's details, and list whether the LLC will be member-managed or manager-managed. The online filing system (eCorp) is the fastest way to submit this.

Step 4: Create an operating agreement

Arizona does not legally require you to file an operating agreement with the state. However, an operating agreement is an essential document that outlines ownership percentages, profit distribution, and management rules. Without an operating agreement, your LLC is subject to Arizona's default LLC laws, which may not align with your preferences.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. You need an EIN to hire employees, open a business bank account, and file federal taxes. Applying for an EIN is completely free and can be done online on the IRS website.

Step 6: Register for state taxes if needed

Instead of a traditional sales tax, Arizona has a Transaction Privilege Tax (TPT). This is a tax imposed on the vendor for the privilege of doing business in the state. If you sell physical products, you must apply for a TPT license through the Arizona Department of Revenue. Additionally, you must pay the flat 2.5% Arizona state income tax on your LLC profits via your personal tax return.

Step 7: File annual reports and stay compliant

Arizona is one of the very few states that does not require an annual report. There are no recurring yearly fees paid to the Corporation Commission to keep your LLC active. However, if your LLC's known place of business is located in a county other than Maricopa or Pima, you must publish a Notice of LLC Formation in a local newspaper for three consecutive runs within 60 days of formation.

Arizona LLC Cost

Fee Type Amount
Formation fee $50
Registered agent estimate $39 - $150 / year
Annual report fee $0 (None)
Franchise tax $0 (None)
Publication fee if applicable $0 (Maricopa/Pima) up to $150+ (Other counties)
Other recurring fees TPT License renewal (if selling goods)
WHEN THIS MAY NOT APPLY

If you do not live in Arizona, do not operate from Arizona, and do not have a specific Arizona-related reason for forming there, a Arizona LLC may not be the best default choice. You may still need to register the LLC as a foreign LLC in the state where you actually operate, which can create duplicate filing fees, registered agent costs, and annual compliance requirements.

Arizona currently charges $50 to form a domestic LLC. Annual reports are currently $0. For many purely online businesses, it is usually worth comparing your home state with commonly used business-friendly states such as Wyoming, which charges $100 to form an LLC and has a $60 minimum annual license tax, before choosing Arizona.

Should you form your LLC in Arizona?

A Arizona LLC usually makes sense if you live in Arizona, operate your business from Arizona, or have a clear legal or tax reason to use Arizona. If you live and operate somewhere else, forming in Arizona may create extra registered agent costs, foreign qualification requirements, and duplicate compliance obligations. Arizona may appeal to some owners, but compare it with Wyoming, Delaware, Nevada, and your home state in our guide to the best state for an online business LLC. For a comprehensive overview of starting a business, visit our LLC formation hub.

Situation Is a Arizona LLC usually a good fit?
You live in Arizona Usually yes
Your business operates in Arizona Usually yes
You want privacy Depends on state rules
You live in another state Usually only if you have a specific reason
You are a non-US resident Depends on banking, taxes, and compliance needs

Arizona LLC vs Wyoming LLC

Compared to a Wyoming LLC, an Arizona LLC is cheaper to maintain because Arizona has no annual report fee (Wyoming charges $60 minimum/year). However, Wyoming offers zero state income tax and complete anonymity for LLC owners. Arizona charges a 2.5% flat state income tax and places member/manager names on the public record. For out-of-state holding companies looking for privacy, Wyoming is better; for an operational business, Arizona is a fantastic low-fee state.