Arizona LLC Overview
Arizona is an exceptional value for LLC formation. At just $50 and no annual report requirement, Arizona offers one of the lowest total costs of LLC ownership in the United States.
Arizona's economy is booming, with Phoenix, Scottsdale, and Tucson attracting technology companies, real estate investors, and service businesses. The state has become a major tech hub with companies relocating from California.
The main consideration is Arizona's 2.5% flat income tax on Arizona-sourced income. For non-residents with no Arizona operations, this does not apply. Compared to New Mexico and Wyoming, Arizona strikes an excellent balance.
Arizona LLC Costs and Fees
All fees below are sourced from the Arizona Secretary of State fee schedule.
| Fee | Amount | When Due |
|---|---|---|
| Articles of Organization (online) | $50 | One-time (at formation) |
| No annual report required | $0 | Not applicable |
| Registered agent | $100-150/year (third party) | Ongoing |
| State income tax | 2.5% flat rate | On Arizona-sourced income |
| Sales tax | Transaction Privilege Tax: 5.6% + local | On taxable goods/services |
| Amendment | $25 | When needed |
| Certificate of Good Standing | $10 | When needed |
Zero ongoing state costs
Arizona is one of the few states with zero ongoing state filing fees. No annual report, no franchise tax. Your only costs are the registered agent and any applicable income taxes.
Step-by-Step: How to Form a Arizona LLC
Step 1: Choose your LLC name
Search for available names on the Arizona Business Entity Search. Your name must include "Limited Liability Company," "LLC," or "L.L.C." Ensure the name is distinguishable from existing entities on file.
Step 2: Appoint a registered agent
Every Arizona LLC must have a registered agent with a physical street address in Arizona. The agent must be available during normal business hours to accept legal documents on behalf of the LLC.
Step 3: File Articles of Organization
File online through the Arizona Secretary of State. The filing requires:
- LLC name with designator (LLC or L.L.C.)
- Statutory agent name and Arizona address
- Principal address
- Management structure
- Name and address of each member or manager
- $50 filing fee
Step 4: Create an Operating Agreement
While not always legally required in Arizona, an Operating Agreement is essential for banking, tax compliance, and internal governance. It establishes member rights, profit distribution, and management structure. We include a custom Operating Agreement in every formation package.
Step 5: Obtain an EIN
Apply for an Employer Identification Number (EIN) from the IRS. This is your LLC's tax ID number, required for banking, hiring, and tax filings. Online application is available for those with an SSN; fax or mail application for international applicants without an SSN.
Step 6: Register for Arizona taxes (if applicable)
If you will sell taxable goods or services in Arizona, register with the Arizona Department of Revenue for applicable tax accounts including sales tax and income tax withholding if you have employees.
Annual Compliance Requirements
- No annual report: Arizona does not require LLCs to file an annual report.
- Federal tax filing: Form 5472 with pro forma 1120 for foreign-owned LLCs. Due April 15.
- Arizona income tax: 2.5% flat rate on Arizona-sourced income.
- TPT: Register with Arizona Department of Revenue if selling taxable goods/services.
- Statutory agent: Maintain agent with physical Arizona address.
- FinCEN BOI Report: Required under the Corporate Transparency Act.
Arizona Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| State income tax | 2.5% flat | Among lowest in the US |
| Franchise tax | $0 | No franchise tax |
| TPT (sales tax) | 5.6% + local | Varies by city |
| Annual report | $0 | No annual report required |
Arizona's 2.5% flat income tax is among the lowest nationally. With no annual report and no franchise tax, ongoing costs are effectively zero for non-residents with no Arizona income.
Processing Times
| Processing Option | Time | Additional Fee |
|---|---|---|
| Online filing | Same day to 7 days | $0 |
| Expedited | Same day | $35 |
| Paper filing | 5-15 business days | $0 |
Arizona offers expedited processing for $35. Standard online filings process within a few business days.
Pros and Cons of a Arizona LLC
Advantages
- Low $50 filing fee
- No annual report ($0/year)
- 2.5% flat income tax (among lowest)
- No franchise tax
- Booming economy (Phoenix tech hub)
- Fast-growing population
- Expedited processing available ($35)
- Business-friendly environment
Disadvantages
- 2.5% income tax on AZ-sourced income
- Member/manager names on public record
- TPT complexity for sellers
- Hot climate
- Less well-known than Wyoming or Delaware
- No charging order protection specified for single-member
Our Pricing: Arizona LLC Formation
Domestic Filers (US Residents)
$249 service fee + $50 state filing fee
International Filers (Non-US Residents)
$349 service fee + $50 state filing fee
Every formation package includes:
- Articles of Organization filing with Arizona Secretary of State
- One year of registered agent service in Arizona
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital document delivery within 24 hours of state approval
- Compliance calendar with all filing deadlines
- Dedicated support via email and WhatsApp
Form your Arizona LLC today
$299 all-in for US residents. $399 for international. No hidden fees.
Start My Arizona LLC →Over five years: $50 in state fees ($50 filing + $0/year). Joint-cheapest with New Mexico. Compare with Wyoming ($510).
Comparing states? Read our Wyoming vs Delaware comparison guide for the full breakdown of top formation states.