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:
|Statutory Agent||$0 or $125 (per year)|
|Articles of Organization||$50 or $85|
|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 (or someone you know) will be your LLC’s Statutory Agent.
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 and $85 for expedited processing. These filing fees are the only initial LLC formation cost in Arizona.
This 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.
What does “most” LLCs mean? If the physical street address of your Arizona LLC Statutory Agent is located in Pima 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 county, you’ll need to publish an ad in the newspaper.
Pro tip: As we mention in our Statutory Agent lesson, if you are thinking of hiring a Commercial Statutory Agent for your Arizona LLC, depending on which company you hire, you may be able to avoid the publication requirement.
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 that do business in the state need to apply for a Transaction Privilege Tax (TPT) license with the Arizona Department of Revenue and with the city where it 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 which city and county it is located.
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.
Arizona LLC Formaton Cost
The total Arizona LLC formation costs (the cost to create the LLC) is either $50 (regular filing) or $85 (expedited processing). These are the only amounts you have to pay if you file the Articles of Organization yourself.
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).
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
How much does it cost to open an LLC in Arizona?
It costs $50 to start an Arizona LLC. This is a one-time filing fee for the LLC Articles of Organization.
How much does an LLC cost per year in Arizona?
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.
Should I hire an LLC formation service?
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.
Do I need to hire an attorney to form an LLC?
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.
How do I start an LLC in Arizona?
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
What’s the cheapest way to start an LLC?
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 does it take to get an LLC in Arizona?
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.
How much does an Arizona business bank account cost?
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.
How much does a Foreign LLC cost in Arizona?
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.
Is Arizona a good state for an LLC?
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.
Arizona Corporation Commission: Fee schedule for LLCs
Arizona Corporation Commission: Fee and payment info
Arizona Corporation Commission: Processing times
Arizona LLC Act: Section 29-3201
Arizona LLC Act: Section 10-122