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How much does an LLC cost in Arizona?
To form an LLC in Arizona, you have to file a document called the Articles of Organization with the Arizona Corporation Commission (AZCC).
You can pay either the regular filing fee ($50) or the expedited fee ($85).
How long it takes to form an Arizona LLC depends on the method of filing (online vs. by mail) and how much you pay ($50 vs. $85). The standard processing time is 14-16 business days.
If you file by mail and pay for expedited processing, approval takes 3-5 business days.
But the fastest method of getting an Arizona LLC is filing online and paying extra for expedited processing: you’ll get your LLC approved in 1 business day.
But that’s just the cost to file the LLC formation paperwork. There are a few other costs you have to consider when forming an LLC in Arizona.
The following will determine if you have additional costs for Arizona LLC formation:
- whether or not you want to hire a Registered Agent
- what county you need to publish your ad in a newspaper (if at all)
On a positive note, there are no Annual Reports for Arizona LLCs (unlike most other states).
Note: For instructions on how to form an LLC in Arizona, please use the links above in the menu (top and center of this page).
The table below shows all the fees for forming an LLC in Arizona. Further below in the article, you’ll find more detailed explanations of each cost.
Arizona LLC Cost:
| Requirements | Cost |
|---|---|
| LLC Name | $0 |
| Statutory Agent | $0 or $125 (per year) |
| Articles of Organization | $50 or $85 |
| Operating Agreement | $0 |
| EIN Number | $0 |
| Annual Report | None |
| Newspaper Publication | Varies by county |
| Transaction Privilege Tax | Varies by business activity and location (paid each year) |
| Taxes | Varies (paid each year) |
Arizona LLC Name ($0)
Naming your Arizona Limited Liability Company won’t cost you anything. The AZCC doesn’t require you to file a Name Reservation or anything like that.
You just need to enter your desired business name in the Articles of Organization. Then the AZCC reviews your filing and approves (or rejects) your LLC name. Either way, there are no costs associated with naming your Arizona LLC.
Be sure to check the rules and requirements for an Arizona LLC Name.
Arizona Statutory Agent ($0 or $125/year)
Arizona law requires that your LLC designate a Statutory Agent (aka “Registered Agent“) when forming your LLC. A Statutory Agent is a person or company who receives legal documents (called “Service of Process“) if your LLC is involved in a legal proceeding.
There is no additional cost if you will be your LLC’s Statutory Agent. Or your Statutory Agent could be someone you know, like one of your business partners, or a friend or family member.
However, if you need to hire a Registered Agent Service, that will cost you about $125 per year.
Hiring a Commercial Registered Agent is a good idea if:
- you don’t have an address in the state (AZ law requires a Statutory Agent to have a physical address in the state)
- you want to maintain your privacy by keeping your address off of public records
Learn more about these options: Arizona Regsitered Agent.
Arizona Statutory Agent Filing Fee ($0)
Arizona requires you to file a Statutory Agent Acceptance Form with your Articles of Organization. This form tells the state that your Statutory Agent agrees to serve as the registered agent (contact person) for your limited liability company.
The good news is there’s no registered agent fee or charge to file the Statutory Agent Acceptance Form.
Arizona LLC Articles of Organization Filing Fee ($50 or $85)
You need to file an Articles of Organization in order to create an LLC in Arizona. The Arizona Articles of Organization can be filed by mail or online. The fees for both are the same: $50 for regular filing (or $85 for expedited processing). These filing fees are the only initial LLC formation cost in Arizona.
The $50 fee is a one-time fee paid to the Arizona Corporation Commission. You don’t have to pay any monthly (or annual) fees to maintain your Arizona LLC.
We recommend filing online as it’s much easier and approval time is slightly faster (due to not having to wait for mail time).
LLC approval: After approving your LLC, the Arizona Corporation Commission will send you an Approval Letter and a Notice of Publication. You’ll have to visit Arizona Corporation Commission: eCorp Entity Search and search for your LLC name (click on “Document History” at the bottom) in order to download a stamped and approved copy of your Articles of Organization.
Arizona LLC Operating Agreement ($0)
An Arizona LLC Operating Agreement is a written contract between the LLC Members. Operating Agreements include detailed information about LLC ownership, how the LLC is managed, and how profits are distributed.
Single-Member LLCs and Multi-Member LLCs should draft an Operating Agreement, keep it with their business records, and give a copy to each Member.
Most websites charge $50 to $200 for Operating Agreements.
Here at LLC University®, we offer free LLC Operating Agreement templates for all types of LLCs.
Arizona EIN Number ($0)
An EIN Number is also known as an Employer Identification Number (EIN) or a Federal Tax ID Number (FEIN). They all mean the same thing.
Although many websites charge a service fee to help you get an EIN for your LLC, it’s actually free. You can obtain an EIN for your LLC from the IRS at no cost.
We have step-by-step instructions on how to get an EIN for your Arizona LLC.
Arizona LLC Annual Report ($0)
Unlike most states, Arizona doesn’t require your LLC to file an Annual Report. You don’t need to pay any annual fees to the AZCC in order to keep your LLC in good standing.
Said another way, Arizona LLC owners don’t have to file annual reports and don’t need to pay annual Arizona LLC fees.
Learn more about Arizona LLC – No Annual Reports.
Arizona LLC Newspaper Publication Requirement (varies by county)
Arizona is one of a few states that have LLC Publication Requirements. Most LLCs in Arizona are required to publish an ad in the newspaper within 60 days of their LLC being approved by the Secretary of State.
The ad must be placed for 3 runs/publications. The newspaper must be located in the same county as the LLC’s Statutory Agent.
On average, in the more affordable counties, the costs to run your ad will be between $60 and $120. In some expensive counties, the cost to run the ad can be $200 or more.
Do I have to publish a notice about my LLC? If the physical street address of your Arizona LLC Statutory Agent is located in Pima County or Maricopa County, you don’t have to publish an ad in the newspaper. This is because the AZCC will handle the publication for the Limited Liability Company on its website (which meets the statutory requirements).
On the other hand, if the physical street address of your Arizona LLC Statutory Agent is located in any county besides Pima or Maricopa, you’ll need to publish an ad in the newspaper.
Pro tip: If you are thinking of hiring a Commercial Statutory Agent for your Arizona LLC, you may be able to avoid the publication requirement if the company you hire is located in Pima County or Maricopa County.
Arizona LLC Taxes (varies)
There are many different types of Arizona LLC taxes that LLC owners must pay. Federal income tax, state taxes, payroll tax (if your LLC has employees), and much more.
What kind of taxes and how much you’ll have to pay can be determined by working with a qualified accountant in Arizona.
The amount you’ll pay your accountant will vary, but most accountants charge between $400 to $900 per year.
Arizona Transaction Privilege Tax (TPT)
Arizona LLCs must apply for a Transaction Privilege Tax (TPT) license with the Arizona Department of Revenue and with the city where the LLC will operate.
The TPT is a tax on the privilege of doing business in the state. Rates vary depending on your Arizona LLC’s business activity and in which city and county it is located.
Arizona Business License or Permit
Depending on where your LLC does business in Arkansas and the industry you’re in, you may need to obtain additional Business Licenses or Permits. For example, you may need to get a City Business Permit.
The costs for these other business licenses or permits will vary depending on location and industry, but usually the fees are not very high. Some business licenses and permits are issued at the state level, and others are issued by a municipality (the town, city, or county).
Should I hire an LLC filing company?
An LLC filing company charges you anywhere between $50 to $400, depending on the company. You don’t have to hire a company to start a business entity, you can do it yourself if you prefer.
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(Learn why Northwest is #1 in Northwest vs LegalZoom)
Arizona LLC Annual/Recurring Costs
Again, there are no annual or recurring costs associated with maintaining your Arizona LLC with the AZCC (since no Annual Report is required).
However, your Arizona LLC might need a business license or permit. And that license or permit may have annual renewal requirements.
Additional Costs
Hiring a Commercial Statutory Agent (aka “Registered Agent“) will cost you about $125 per year.
And of course there’s taxes, which include the amount you pay in taxes and how much you pay your accountant for their services. This will vary quite a bit and we’re not able to provide an estimate. You’ll need to speak to a few accountants regarding your business.
Arizona LLC Costs FAQs
It costs $50 to start an Arizona LLC. This is a one-time filing fee for the LLC Articles of Organization.
If you hired a Statutory Agent service, you’ll have an annual subscription fee to pay each year. This is usually about $125 per year.
Your Arizona LLC might need a business license or permit. This depends on your industry and where your LLC is located. If your company needs professional licenses, the board that issues the business licenses determines the annual renewal fees. You’ll need to check with your municipality to see if there are any annual renewal fees for the local business permit.
There’s no annual report fee for Arizona LLCs.
You aren’t required to hire a professional service company to form your Arizona LLC. You’re allowed to form your LLC yourself if you’d like. Hiring a company is an optional Arizona LLC cost.
However, if you want to save time and make sure your LLC is filed correctly, we recommend hiring Northwest Registered Agent.
Northwest Registered Agent has excellent customer service and they include Registered Agent services free for the 1st year. They also offer other services, like an Operating Agreement and filing your Biennial Report.
Check out Best LLC Services for more suggestions.
No, you aren’t required to hire an attorney to form your LLC in Arizona. You’re allowed to form your LLC yourself if you’d like.
However, some people may want to hire an attorney if their LLC has a complex ownership or management structure, has investors, or requires industry-specific documentation.
A business attorney usually charges between $800 and $2,500 to form an LLC.
Here are the steps to starting an LLC in Arizona:
- Choose an LLC business name and make sure it’s available
- Choose who will be your Arizona Statutory (Registered) Agent
- File the Arizona Articles of Organization
- Complete and sign an LLC Operating Agreement
- Get a Tax ID Number (EIN) from the IRS
- Open an LLC bank account
- Check whether you need any business licenses in Arizona
You can get an LLC cheaply by filing your formation documents yourself. You’ll also save money by being your own Registered Agent, and using our free LLC Operating Agreement template.
By forming your LLC yourself, being your own Agent, and using our Operating Agreement template you can save over $400.
How long it takes to get an LLC in Arizona depends on how you file your Articles of Organization.
You can get an LLC in Arizona approved faster if you pay the expedited online filing fee for 1-day approval. Otherwise, If you file online, your Arizona LLC will be approved in 14-16 business days. And if you file by mail, approval takes 14-16 business days (plus mail time). Expedited filing by mail has an approval time of 3-5 business days.
It varies. Some banks charge monthly fees ($10 to $20 per month), but these can sometimes be avoided by meeting certain requirements. For example, if you make a certain number of direct deposits or maintain a specified minimum balance, then they’ll waive the monthly fees.
And you might be able to find a bank that doesn’t charge any monthly fees.
Before you open your LLC business bank account, we recommend calling and asking if there are ways to avoid the monthly maintenance fees.
A Foreign LLC is an LLC formed in another state that must register (aka Foreign Qualify) in Arizona. This is because the LLC is doing business in both states.
The Arizona Foreign LLC cost is $150 for the foreign registration statement.
If you form an LLC in Arizona, it is called a “Domestic LLC”. If you formed your LLC in another state, it would be a Foreign LLC once you register it in Arizona.
Yes, Arizona is a great state to start a business. Arizona doesn’t have a general state business license requirement or an annual report fee, has quick approval times and helpful representatives at the Arizona Corporations Commission if you have questions.
However, the most important factors in deciding where to start a business are where you live and where you’re doing business.
Meaning, if you live in or do business in Arizona, then you should start your business in Arizona. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business. And just because a certain state has cheaper LLC fees doesn’t mean it’s a good idea to form your LLC there.
For example, if you form an LLC in Delaware, but live in and conduct business in Arizona, you’ll also need to register your Delaware LLC in Arizona (and pay fees). And you’ll end up paying Arizona taxes anyway. This ends up leading to more costs and more headaches with no advantages.
In summary, if you are an Arizona resident, then yes, Arizona is the best state to form an LLC. If you don’t live in and do business in Arizona, then no, Arizona probably isn’t a good state to start an LLC.
References
Arizona LLC Act: Section 10-122
Arizona LLC Act: Section 29-3201
Arizona Corporation Commission: Processing times
Arizona Corporation Commission: Fee and payment info
Arizona Corporation Commission: Fee schedule for LLCs
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
Thank you for taking my question. I’m trying to get an LLC in Arizona with my business name that’s in Dallas how much will it cost and take to establish a regular LLC from Arizona?
Hi Keonis, if you file the LLC yourself, the fee is $50 for standard processing or $85 for expedited processing (see how long does it take to get an Arizona LLC for approval times). That’s the cost to create the LLC. Alternatively, you can hire an Arizona LLC filing company to form the LLC (of course, for a fee).
If you’re also the Arizona Statutory Agent for your LLC, then that’ll save you money (it costs $0). And if you’re in Pima or Maricopa county, then you also won’t have to spend money on the Arizona LLC publication requirement. Furthermore, if you get your EIN number yourself and download our free Arizona LLC Operating Agreement, you’ll also save money. So in essence, you could spend just $50 (or $85) to form the Arizona LLC with the name that you want.
However, if you hire an Arizona Statutory Agent Service, that’ll cost about $100 – $150 per year. And if you need to publish an ad in the newspapers, that’ll cost $60 – $120. If you pay someone to get the EIN Number for your LLC, that’s usually $50 – $75.
On the operating agreement how would I show an investor share of 5% for $25,000, at the start of the company. Even though my initial capital contribution would only be $1,000, but my ownership interest would be 95% of the company? I’m a songwriter & I’m offering an investor 5% of future Royalities for all my songs for an initial $25,000, to help pay studio costs for all the new songs ready to be produced currently.
Hi David, we recommend working with an attorney to customize the Operating Agreement and any supplemental documentation.
I have an LLC and am setting up another to serve as an escrow account for my existing LLC. Can I set this up under my existing, or is it completely separate?
Hello, we’re not sure as we’re not familiar with using LLCs for the purpose of escrow accounts. Thank you.