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How much does it cost to form an LLC in Arizona?
How to form an LLC in Arizona
This Quick Start Guide is a brief overview of how to form an LLC in Arizona.
Arizona LLC Costs:
Arizona LLC formation: $50 (regular) or $85 (expedited)
Arizona LLC annual report: none
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Costs to setting up an Arizona LLC
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).
It takes 22 business days to process your filing if you pay the regular filing fee. On the other hand, it takes 9 business days if you pay the expedited fee.
But that’s just the filing fee for the Articles of Organization. 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 to forming an AZ LLC:
- whether or not you want to hire a Registered Agent (aka “Statutory 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 Costs:[table id=30 /]
Arizona LLC Name ($0)
Naming your Arizona LLC 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 LLC 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.
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 Commercial Statutory Agent, that will cost you about $125 per year.
Hiring a Commercial Statutory 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
Arizona LLC Articles of Organization ($50 or $85)
You need to file an Articles of Organization in order to create an LLC in Arizona. The 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 filing.
The filing fee is a one-time fee. You don’t have to pay any monthly (or annual) fees to maintain your Arizona LLC.
We recommend filing your Articles of Organization 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 AZCC will send you an Approval Letter and a Notice of Publication. You’ll have to visit 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)
Most websites charge $50 – $200 for an LLC Operating Agreement.
Here at LLC University®, we offer free Operating Agreement templates both for Member-Managed Arizona LLCs and Manager-Managed LLCs that you can download. Click on the “Operating Agreement” link at the top of this page.
Arizona LLC 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. The link is at the top of this page.
Arizona LLC Annual Report (none)
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.
Arizona LLC Newspaper Publication Requirement (varies by county)
Most* LLCs in Arizona are required to publish an ad in the newspaper within 60 days of their LLC being approved.
The ad must be placed for 3 runs/publications. The newspaper must be located in the same county as the LLC’s Known Place of Business.
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 your LLC’s Known Place of Business is located in Pima or Maricopa county, you don’t have to publish an ad in the newspaper. The reason for this is that LLCs located in that county are published on the AZCC website, which meets the statutory requirements. If your LLC’s Known Place of Business is located in any county besides Pima or Maricopa county, you’ll need to publish an ad in the newspaper.
(Note: 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 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.
Do I need to hire an attorney?
You are not required to hire an attorney to form your LLC in Arizona (although you can if you want to).
An attorney usually charges between $500 to $2,500 to form your Arizona LLC. Their fee may be in addition to the $50 or $85 LLC filing fee.
You can save a lot of money if you form your LLC yourself. You can follow our free Arizona LLC lessons to help you form your LLC (again, links are at the top of this page).
Should I hire an LLC filing company?
An LLC filing company charges you anywhere between $50 to $400, depending on the company.
Arizona LLC Forming Cost
The total Arizona LLC formation costs (the cost to create the LLC) is either $50 (regular filing) or $85 (expedited filing). 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 and we’re not able to provide an estimate. You’ll need to speak to a few accountants regarding your business.