How much does an LLC cost in Arizona? (details)

Forming an Arizona LLC entails more than just paying the first filing fee; it doesn't have to be extremely expensive.

We outline all up-front and continuing costs for an Arizona LLC and advise how to cut these out of the budget successfully.

How Much Does It Cost to Start an LLC in Arizona?

There is a regular filing fee ($50)  filing fee or an expedited fee ($85) for the Articles of Organization with the Corporation Commission when forming an LLC in Arizona.

This is an important step in creating your LLC's legal standing, which will allow it to function under Arizona's regulations if approved.

Apart from the LLC filing fee mentioned above, additional expenses are associated with establishing an Arizona LLC (Limited Liability Company).

LLC Costs in Arizona

Arizona LLC Name ($0)

Naming your Arizona Limited Liability Company is free. The Arizona Corporation Commission (AZCC) does not require you to file a Name Reservation or any similar paperwork.

Simply enter your desired business name in the Articles of Organization. The AZCC will then review and either approve or reject your LLC name. There are no fees involved in naming your Arizona LLC.

Arizona Registered Agent ($0 or $125/annually)

Arizona law mandates that your LLC appoint a Statutory Agent, also known as a Registered Agent when forming your LLC. The Statutory Agent, either an individual or a company, is responsible for receiving legal documents (referred to as "Service of Process") if your LLC is involved in any legal matters.

There is no extra charge if you decide to be your LLC’s Statutory Agent. Alternatively, your Statutory Agent can be someone you know, such as a business partner, friend, or family member.

However, if you opt to hire a Registered Agent Service, it will cost approximately $125 per year.

Using a Commercial Registered Agent is beneficial if:

• You lack an address in Arizona (state law requires a Statutory Agent to have a physical address within the state).
• You prefer to keep your address private and off public records.

Arizona Statutory Agent Filing Fee ($0)

When you file your Articles of Organization in Arizona, you must also submit a Statutory Agent Acceptance Form. This form notifies the state that your Statutory Agent has agreed to act as the registered agent (contact person) for your limited liability company.

The best part is that there's no fee to appoint a registered agent or to file the Statutory Agent Acceptance Form.

Arizona LLC Articles of Organization Filing Fee ($50 or $85)

To establish an LLC in Arizona, you must submit an Articles of Organization, which can be filed either through mail or online. The filing fees are identical for both methods: $50 for standard processing or $85 for expedited service. These fees constitute the sole initial cost for forming an LLC in Arizona.

The $50 fee is a single payment made to the Arizona Corporation Commission. There are no ongoing monthly or annual fees required to maintain your Arizona LLC.

Arizona LLC Operating Agreement ($0)

An Arizona LLC Operating Agreement is a formal contract among the LLC Members. It outlines crucial details about ownership, management structure, and the distribution of profits within the LLC.

Both Single-Member and Multi-Member LLCs in Arizona should create an Operating Agreement. This document should be maintained with their business records and distributed to each LLC member.

Operating Agreements typically cost between $50 and $200 on most websites.

Arizona EIN Number ($0)

An EIN Number, also called an Employer Identification Number (EIN) or Federal Tax ID Number (FEIN), is synonymous across these terms.

While many websites may charge a service fee to assist in obtaining an EIN for your LLC, you can get one for free directly from the IRS.

Arizona LLC Annual Report ($0)

In contrast to many states, Arizona does not mandate that your LLC files an Annual Report. There are no annual fees required by the AZCC to maintain your LLC in good standing.

Alternatively, owners of Arizona LLCs are not required to file annual reports or pay yearly fees to maintain their LLCs.

Arizona LLC Newspaper Publication Requirement (varies by county)

Arizona is one of the states that imposes LLC Publication Requirements. In Arizona, most LLCs must publish a notice in a newspaper within 60 days of their LLC's approval by the Secretary of State.

The advertisement must be published for three consecutive runs or publications in a newspaper located within the same county as the LLC’s Statutory Agent.

Typically, in the less expensive counties, the expenses for publishing your ad range from $60 to $120. However, in pricier countries, the cost can exceed $200.

Do I have to publish a notice about my LLC?

If your Arizona LLC's Statutory Agent's physical address is in Pima County or Maricopa County, you are not required to publish an ad in the newspaper. The AZCC will handle the LLC's publication requirements on its website, fulfilling statutory obligations.

Conversely, if your Arizona LLC Statutory Agent's physical street address is in any county other than Pima or Maricopa, you will be required to publish an ad in the newspaper.

Arizona LLC Taxes (varies)

Arizona LLC owners are responsible for various taxes, including federal income tax, state taxes, payroll tax (if applicable), and more.

Determining the types of taxes and their respective amounts can be best achieved by consulting with a qualified accountant in Arizona.

The fee you'll pay your accountant can vary but typically ranges from $400 to $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 city where the LLC conducts its operations.

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 and Permit Fees

The locations and industry sectors in which your LLC operates in Arizona may require you to apply for additional business licenses or permits. For your LLC's specific operating area, for example, it may be necessary to obtain a city business permit.

Location and industry specifics can affect the cost of these licenses or permits. These costs are usually fair. Local governments such as towns, cities, or counties are responsible for administering some licenses and permits, while the state issues others.

Arizona LLC Annual/Recurring Costs

Similarly, there are no ongoing or yearly expenses involved in maintaining your Arizona LLC with the AZCC, as no Annual Report is necessary.

However, your Arizona LLC may need a business license or permit, which may require annual renewal.

Additional Costs

Engaging a Commercial Statutory Agent (also known as a "Registered Agent") typically incurs an annual fee of approximately $125.

Certainly! Taxes encompass both the amount you pay in taxes and the fees you pay your accountant for their services. These costs can vary widely, so it is challenging to provide a precise estimate. You should consult with multiple accountants about your business needs.

Arizona LLC Costs FAQs