Form an LLC in Arizona.
Filing an LLC in Arizona costs $50 for the Articles of Organization. With a registered agent service ($99/yr) and the Year-1 annual obligations, a typical first-year cost lands near $209. Ongoing cost runs about $99/year.
Run the numbers for Arizona.
Estimates only. Verify with the Arizona Secretary of State before paying. Not legal advice.
Arizona LLC fees, line by line
| Component | Cost / Rule | Note |
|---|---|---|
| Articles of Organization filing fee | $50 | One-time charge to register the LLC with the state. |
| Annual report | None | This state does not require an LLC annual report. |
| Franchise / business tax | $0 | This state has no minimum franchise tax for LLCs. |
| Publication requirement | $60 | Required by NY, AZ, NE. New LLCs must publish a formation notice in local newspapers; cost varies by county. |
| Registered agent | Required | Every state requires a registered agent. You can be your own RA in your home state at no cost; commercial services run $35–$300/yr. |
| Expedited filing | Available | Typical add-on $50–$100 for 1–3 day turnaround. |
The Arizona publication requirement
Arizona requires LLCs formed outside Maricopa and Pima counties to publish their Articles of Organization in an approved newspaper for three consecutive weeks. Typical cost: $60. Maricopa and Pima are exempt — the Corporation Commission posts notices on its own website for those.
No annual report, no franchise tax
Arizona is one of a small group of states that doesn't require an LLC annual report and doesn't impose a minimum franchise tax. Your only recurring cost is the registered agent — which can be $0 if you serve as your own. This makes Arizona one of the cheapest states for a long-lived LLC, particularly for dormant holding entities.
Should you form in this state if you don't live here?
For most operators, the answer is no. An LLC pays state income tax wherever it operates, not where it's formed. Forming in Arizona while doing business in another state means paying both states' fees plus a foreign-qualification fee in your operating state. Real reasons to form in a non-home state: pure IP holdcos, real estate holdcos in the property state, asset-protection structures, or non-US residents with no US nexus. Full breakdown of when forming out-of-state pays off →
Forming an LLC in Arizona
Arizona's Corporation Commission handles LLC formation through its online filing portal. The state does not require newspaper publication of Articles of Organization, which speeds setup considerably. Online filing is available 24/7 and provides immediate confirmation with filing acceptance within 1-2 business days; paper filings to the Phoenix office take 5-10 business days. Arizona offers expedited processing for an additional fee if timing is urgent. The state's digital infrastructure is well-developed, making online formation the standard path for most applicants.
Before submission, a name search is essential. Arizona's Corporation Commission maintains a free, real-time entity search database. The LLC name must be distinguishable from existing entities and must include "LLC," "L.L.C.," "Limited Liability Company," or "Ltd. Liability Co." Name reservation is available for 120 days at minimal cost. Registered agent requirements are mandatory: every Arizona LLC must designate a registered agent with an Arizona street address. The agent can be a member, manager, employee, or professional service. This address is public and becomes the official point of service for legal documents and official correspondence.
Filing fees in Arizona are reasonable: $50 for Articles of Organization for a standard formation. However, Arizona is unique in requiring biennial reports. Every two years, active LLCs must file an Arizona Biennial Report and pay a $0 fee (the report itself is free in terms of state filing costs, though some registered agent services charge for handling it). The biennial report is due on the last day of the month in which the LLC was formed, every two years thereafter. Failure to file the biennial report on time results in administrative dissolution, though reinstatement is possible. This recurring obligation distinguishes Arizona from no-report states.
Arizona has relatively straightforward operating agreement and manager rules. The state allows flexibility in manager structure, with no requirement that managers be members. Single-member and multi-member LLCs are treated equivalently. The state's statute does not mandate filing an operating agreement with the state, though drafting one is highly recommended for governance clarity. Amendments to Articles of Organization require filing with the Corporation Commission and incur additional fees, so planning the structure upfront is practical.
State-specific tax considerations
Arizona imposes a state income tax with rates ranging from 2.55% to 4.50% depending on income bracket. LLCs are pass-through entities; income flows to members' personal returns. Multi-member LLCs default to partnership tax treatment unless an election is made otherwise. Arizona does not impose a minimum LLC tax or annual franchise fee. Sales tax registration is required for any LLC selling tangible goods; the threshold is immediate. Arizona's statewide sales tax rate is 5.625%, but municipalities add local rates, bringing total sales tax to 5.625% to 8.35% depending on location. Business personal property taxes apply to equipment and inventory in most Arizona counties.
Payroll tax registration is mandatory once the LLC has employees. Employers must register with the Arizona Department of Revenue for income tax withholding and with the Department of Economic Security for unemployment insurance. Arizona is friendly to service-based businesses; there is no service gross receipts tax. Unlike states with inventory taxes or complex apportionment rules, Arizona's tax framework is relatively straightforward. The biennial reporting requirement, while not onerous, requires calendar management to avoid administrative dissolution.
Frequently asked questions
What is Arizona's biennial report?
Every two years, Arizona LLCs must file a Biennial Report. It is due on the last day of the month in which the LLC was originally formed, then every two years on that date. The report is free to file but missing the deadline results in administrative dissolution unless the LLC is later reinstated.
Does Arizona require a registered agent?
Yes. Every Arizona LLC must have a registered agent with an Arizona street address. The agent can be an owner, manager, employee, or professional service. This address is public and is where legal documents are served.
How much does it cost to form an LLC in Arizona?
The filing fee for Articles of Organization is $50, making Arizona one of the lowest-cost states for initial formation. However, the state's biennial report requirement creates ongoing administrative work, though there is no fee for the report itself.
Do I need an operating agreement in Arizona?
Operating agreements are not required to be filed with the state and are not legally mandated, but they are strongly recommended for multi-member LLCs to establish profit sharing, member rights, and dispute procedures. Even single-member LLCs benefit from a documented agreement for IRS and banking purposes.
Sources & verification
Compare Arizona with other states
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