The Cost of Starting an LLC in Arizona
(Full Guide)
2025 LLC Guide
How Much Does an LLC Cost in Arizona?
Explore how much does an LLC cost in Arizona? Our informative article breaks down the necessary fees, paperwork, and process to get your business registered.
To establish an LLC in Arizona, you need to submit a document known as the Articles of Organization to the Arizona Corporation Commission (AZCC). You have the option to pay the standard filing fee of $50 or choose the expedited service for a fee of $85.
The time required to establish an Arizona LLC varies based on the filing method (online or by mail) and the fee you choose to pay ($50 or $85). Typically, the processing time is around 14-16 business days. If you opt for mail filing and select expedited processing, you can expect approval within 3-5 business days. However, the quickest way to obtain an Arizona LLC is to file online and pay for expedited service, which grants approval in just 1 business day.
However, that figure only represents the expense for submitting the LLC formation documents. There are several additional costs to take into account when establishing an LLC in Arizona.
The upcoming details will help you identify whether there are extra expenses associated with forming an LLC in Arizona:
- deciding whether to hire a Registered Agent
- identifying the specific county for publishing your advertisement in a newspaper (if required)
Fortunately, Arizona LLCs do not require Annual Reports, which sets them apart from many other states.
Note: To find guidance on establishing an LLC in Arizona, kindly refer to the links provided in the menu located at the top and center of this page.
The table below outlines the various fees associated with establishing an LLC in Arizona. Further along in the article, you will discover in-depth explanations for each of these costs.
Expenses for Establishing an Arizona LLC
The table below details the various costs involved in setting up an LLC in Arizona.
Later in the article, you will discover a detailed analysis of every charge.
Expenses for an LLC in Arizona LLC
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Arizona LLC Name
Choosing a name for your Arizona Limited Liability Company is free of charge. The AZCC does not mandate the submission of a Name Reservation or similar documentation.
To establish your Arizona LLC, simply input your preferred business name in the Articles of Organization. Following this, the AZCC will evaluate your submission and either approve or deny your chosen LLC name. Regardless of the outcome, there are no fees involved in naming your Arizona LLC.
Make sure to review the guidelines and criteria for naming an Arizona LLC.
Arizona Statutory Agent
Arizona law mandates that your LLC appoint a Statutory Agent (also known as a Registered Agent) during the formation of your LLC. A Statutory Agent is an individual or entity designated to receive legal documents (referred to as Service of Process) if your LLC becomes involved in any legal matters.
You won’t incur any extra fees if you choose to be the Statutory Agent for your LLC. Alternatively, your Statutory Agent can be a trusted individual, such as a business partner, a close friend, or a family member.
If you decide to engage a Registered Agent Service, anticipate an annual expense of around $125.
Engaging a Commercial Registered Agent is advisable when:
- you lack a physical address in the state (Arizona law mandates that a Statutory Agent must possess a physical address within the state)
- you wish to protect your privacy by ensuring your address remains absent from public records
Discover additional details regarding these choices: Arizona Registered Agent.
Arizona Statutory Agent Filing Fee
Arizona mandates the submission of a Statutory Agent Acceptance Form alongside your Articles of Organization. This document informs the state that your Statutory Agent consents to act as the registered agent (point of contact) for your limited liability company.
The great news is that there are no fees associated with being a registered agent, nor is there a cost to submit the Statutory Agent Acceptance Form.
What is the Cost of a DBA?
A DBA, which stands for “Doing Business As,” is registered at either the state or county level. In Alaska, the filing fee is $25, and the registration is submitted to the state.
Note: A DBA can also be referred to as a Trade Name, Fictitious Name, Assumed Name, or Fictitious Business Name. These terms are synonymous.
Arizona LLC Articles of Organization Filing Fee
To establish an LLC in Arizona, you must submit Articles of Organization. You can file the Arizona Articles of Organization either by mail or through an online portal. The filing fees are identical for both methods: $50 for standard processing (or $85 for expedited service). These filing fees represent the sole initial expense associated with forming an LLC in Arizona.
The $50 charge is a single payment made to the Arizona Corporation Commission. There are no ongoing monthly or yearly fees required to keep your Arizona LLC active.
We suggest submitting your application online, as it simplifies the process and can lead to quicker approval times since you won’t have to account for mailing delays.
LLC approval: Once your LLC is approved, the Arizona Corporation Commission will issue an Approval Letter along with a Notice of Publication. To obtain a stamped and approved version of your Articles of Organization, you need to go to the Arizona Corporation Commission: eCorp Entity Search and look up your LLC name (click on “Document History” at the bottom).
Arizona LLC Operating Agreement
An Operating Agreement for an Arizona LLC is a formal document that outlines the terms between the members of the LLC. These agreements encompass comprehensive details regarding LLC ownership, management procedures, and the distribution of profits.
Single-Member LLCs and Multi-Member LLCs are advised to create an Operating Agreement, maintain it with their business documentation, and provide a copy to every Member.
Many websites offer Operating Agreements at a price range of $50 to $200. we provide free LLC Operating Agreement templates suitable for various types of LLCs.
Arizona EIN Number
An EIN Number, commonly referred to as an Employer Identification Number (EIN) or a Federal Tax ID Number (FEIN), signifies the same entity.
Even though numerous websites impose a service fee to assist you in acquiring an EIN for your LLC, the process is completely free. You can secure an EIN for your LLC directly from the IRS without any charges.
We provide detailed, step-by-step guidance on obtaining an EIN for your LLC in Arizona.
Arizona LLC Annual Report
Unlike many states, Arizona does not mandate that your LLC submit an Annual Report. There are no annual fees required to be paid to the AZCC to maintain your LLC’s good standing.
In other words, owners of Arizona LLCs are not required to submit annual reports and are not obligated to pay annual fees for their Arizona LLC.
Discover more about Arizona LLC – No Annual Reporting Required.
Arizona LLC Newspaper Publication Requirement (varies by county)
Arizona stands out as one of the limited states that enforce LLC Publication Requirements. Typically, LLCs in Arizona must place an advertisement in a newspaper within 60 days following their approval by the Secretary of State.
The advertisement is required to run for three publications. It must be featured in a newspaper situated within the same county as the LLC’s Statutory Agent.
In general, in the less expensive counties, the cost of advertising typically ranges from $60 to $120. Meanwhile, in pricier counties, you may find that the expense to run your ad exceeds $200.
Do I need to announce my LLC?
If your Arizona LLC’s Statutory Agent has a physical address in Pima County or Maricopa County, you are not required to place an advertisement in a newspaper. This is due to the fact that the AZCC will publish the notice for the Limited Liability Company on its website, fulfilling the legal obligations.
Conversely, if the physical street address for your Arizona LLC Statutory Agent is situated in a county other than Pima or Maricopa, you are required to publish an advertisement in a newspaper.
Pro tip: If you’re considering enlisting a Commercial Statutory Agent for your Arizona LLC, you might be able to bypass the publication requirement if the agent you choose is based in Pima County or Maricopa County.
Arizona LLC Taxes (varies)
There are various categories of Arizona LLC taxes that owners are required to pay. This includes federal income tax, state taxes, payroll tax (if your LLC employs staff), and several additional taxes.
The type of taxes and the amount you will need to pay can be established by collaborating with a skilled accountant in Arizona.
The fees for your accountant can differ, but generally, most accountants bill between $400 and $900 annually.
Arizona Transaction Privilege Tax (TPT)
Arizona LLCs are required to obtain a Transaction Privilege Tax (TPT) license from both the Arizona Department of Revenue and the local city in which the LLC will conduct its business.
The TPT is a tax imposed on the privilege of conducting business within the state. The rates differ based on the business activities of your Arizona LLC and the specific city and county where it operates.
Calculating the tax obligations for your small business is best achieved by working alongside a proficient accountant in Alaska. The costs associated with hiring an accountant can vary. Typically, accountants might charge approximately $300 per year for a straightforward tax return, whereas more intricate filings might reach as high as $900.
Arizona Business License or Permit
Depending on the location of your LLC’s operations in Arkansas and the sector you are involved in, you might be required to secure additional Business Licenses or Permits. For instance, acquiring a City Business Permit could be necessary.
The expenses associated with various business licenses or permits can differ based on the industry and location, though generally, the charges are relatively modest. Certain business licenses and permits are granted at the state level, while others are provided by local municipalities such as towns, cities, or counties.
Should I hire the services of an LLC filing company?
An LLC formation service typically charges between $50 and $400, based on the provider you choose. However, hiring a service isn’t mandatory to establish a business entity; you can opt to handle the process on your own if that’s your preference.
Arizona LLC annual Expenses
Once more, there are no yearly or ongoing expenses linked to sustaining your Arizona LLC with the AZCC (as there is no requirement for an Annual Report).
Nevertheless, your Arizona LLC may require a business license or permit. Additionally, this license or permit could have yearly renewal obligations.
Additional Costs
Engaging a Commercial Statutory Agent (also known as a “Registered Agent”) typically incurs an annual fee of around $125.
And naturally, there are taxes involved, which encompass both the tax payments you make and the fees for your accountant’s services. This can differ significantly, and we can’t offer a precise estimate. It’s advisable to consult several accountants about your business situation.
Arizona LLC Costs FAQs
What are the expenses for starting 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.
What is the annual fee for maintaining an LLC in Arizona?
If you engage a Statutory Agent service, you will incur an annual subscription fee every year. Typically, this cost is around $125 annually.
Your Arizona LLC may require a business license or permit. This requirement is influenced by your industry and the specific location of your LLC. If your business necessitates professional licenses, the governing board that manages these licenses will set the annual renewal fees. It’s essential to consult with your local municipality to find out if there are any annual renewal fees associated with the local business permit.
There’s no annual report fee for Arizona LLCs.
Is using an LLC formation service advisable?
You have the option to establish your Arizona LLC without the need to engage a professional service provider. If you prefer, you can handle the formation of your LLC on your own. Employing a company is an optional expense associated with setting up an Arizona LLC.
If you’re looking to save time and ensure your LLC is filed accurately, we suggest enlisting the services of Northwest Registered Agent.
Northwest Registered Agent provides outstanding customer support and includes Registered Agent services at no cost for the first year. Additionally, they offer various other services, such as an Operating Agreement and assistance with your Biennial Report filing.
Explore Best LLC Services for additional recommendations.
Is it necessary to hire a lawyer to establish an LLC?
No, hiring an attorney to establish your LLC in Arizona is not mandatory. If you prefer, you can create your LLC on your own.
Nonetheless, individuals might consider enlisting the services of a lawyer if their LLC features a complicated ownership or management setup, involves investors, or necessitates specialized industry paperwork. Typically,
a business attorney’s fees for establishing an LLC range from $800 to $2,500.
What are the steps to establish an LLC in Arizona?
Below are the steps to establish an LLC in Arizona:
- Select a name for your LLC business and verify its availability.
- Select your Arizona Statutory (Registered) Agent
- Submit the Articles of Organization for Arizona
- Finalize and endorse an LLC Operating Agreement
Obtain an Employer Identification Number (EIN) from the IRS
Open an LLC bank account
Verify if you require any business permits in Arizona.
What’s the most affordable method to create an LLC?
You can establish an LLC affordably by submitting your formation paperwork on your own. Additionally, you’ll cut costs by acting as your own Registered Agent and utilizing our complimentary LLC Operating Agreement template.
Establishing your LLC independently, acting as your own Agent, and utilizing our Operating Agreement template can help you save more than $400.
How long is the process to obtain an LLC in Arizona?
The time required to obtain an LLC in Arizona varies based on your method of filing the Articles of Organization.
In Arizona, you can expedite the approval of your LLC by opting for the online expedited filing fee, which guarantees a 1-day approval. If you choose to file online without this option, your Arizona LLC will be approved in about 14-16 business days. Filing by mail also results in a similar timeframe of 14-16 business days, excluding the time it takes for mail delivery. However, if you select the expedited mail filing, you can expect approval within 3-5 business days.
What are the costs associated with an Arizona business bank account?
It depends. A number of banks impose monthly fees (ranging from $10 to $20), but these fees can often be circumvented by fulfilling specific criteria. For instance, if you execute a certain number of direct deposits or keep a designated minimum balance, the banks may choose to waive the monthly charges.
You could discover a bank that offers no monthly fees at all. Prior to establishing your LLC business bank account, we suggest reaching out to inquire about options to waive the monthly maintenance fees.
What is the fee for a Foreign LLC in Arizona?
A Foreign LLC refers to an LLC established in a different state that is required to register (also known as Foreign Qualification) in Arizona. This requirement arises when the LLC conducts business in both states.
The fee for registering a Foreign LLC in Arizona is $150 for the foreign registration statement.
When you establish an LLC in Arizona, it is referred to as a “Domestic LLC”. However, if you create your LLC in a different state, it will be classified as a Foreign LLC upon its registration in Arizona.
Is Arizona a favorable state for forming an LLC?
Absolutely, Arizona is an excellent place to launch a business. The state does not mandate a general business license or charge an annual report fee, and it boasts fast approval times along with supportive staff at the Arizona Corporations Commission ready to assist with any inquiries.
Nevertheless, the key elements in determining the location for launching a business are your residence and the area where you intend to operate.
If you reside or operate a business in Arizona, it’s best to establish your business right there in Arizona. Although numerous websites discuss tax rates and the benefits of different states, this information is irrelevant if it doesn’t pertain to your home state. Additionally, just because a state offers lower LLC fees doesn’t necessarily mean that forming your LLC there is a wise decision.
For instance, if you establish an LLC in Delaware while residing and operating in Arizona, you must also register your Delaware LLC in Arizona (along with applicable fees). Ultimately, you will still incur Arizona taxes. This results in increased expenses and complications without any real benefits.
In conclusion, for those residing in Arizona, it is indeed true that Arizona stands out as the optimal state for establishing an LLC. However, if you do not live in Arizona and are not conducting business there, then it is likely that Arizona may not be the most suitable choice for launching your LLC.
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