Arizona is one of the least expensive states to form and keep an LLC. The filing fee is $50, there’s no annual report, and the state income tax is a low flat rate. Two Arizona specifics to understand are the publication requirement, which depends on your county, and Arizona’s version of sales tax, the transaction privilege tax (TPT).
What an Arizona LLC costs
Table of Contents
| Item | Cost | When |
|---|---|---|
| Articles of Organization | $50 regular; $85 expedited | At formation |
| Publication (if required) | Newspaper cost, varies | Within 60 days of approval, outside Maricopa and Pima counties |
| Annual report | None | — |
| TPT license (if selling taxable goods or services) | State fee plus any city fees | Before your first taxable sale |
| Trade name registration (if using a DBA) | Small state fee | When registering |
Step 1: Choose your LLC name
The name must include “limited liability company”, “limited company”, “LLC”, “L.L.C.”, “LC” or “L.C.” and be distinguishable from other names on file with the ACC. Search the ACC’s business records first, then check federal trademarks, domains and social handles using our business name checklist.
To use a different trading name, register a trade name with the Arizona Secretary of State.
Step 2: Appoint a statutory agent
Arizona calls the registered agent a statutory agent. It must have a physical Arizona street address (no PO boxes) and must sign to accept the appointment. You can serve yourself, name another adult or use a commercial agent.
Your agent’s county also matters for the publication requirement, described below.
Step 3: File Articles of Organization with the ACC
File Articles of Organization with the Arizona Corporation Commission, which handles business filings in Arizona instead of the Secretary of State. File online or by mail, and pay $50 for regular processing or $85 for expedited. You’ll include the LLC’s name, the statutory agent’s details and acceptance, the LLC’s address, whether it’s managed by members or managers, and the names of members or managers. Note that this information becomes part of the public record.
Regular processing can take several weeks during busy periods; expedited filing is much faster.
Step 4: Complete the publication requirement, if it applies
Arizona requires some new LLCs to publish a notice of their formation:
- If your statutory agent’s address is in Maricopa County or Pima County, the ACC publishes the notice itself, at no cost to you.
- Everywhere else, you must publish the notice in an ACC-approved newspaper in the county, three consecutive times within 60 days of your Articles being approved.
Your approval letter from the ACC explains what applies to your LLC. Keep proof of publication with your records.
Because the requirement depends on the agent’s address, some owners outside the two big counties choose a commercial statutory agent based in Maricopa or Pima County, which removes the need to publish. Ask your agent how it affects you.
Step 5: Create an operating agreement
Arizona doesn’t require you to file an operating agreement, but every LLC should have one, covering ownership, management, profit sharing and what happens when members join or leave.
Step 6: Get an EIN and open a bank account
Apply for a free EIN from the IRS online, then open a business bank account using your approved Articles and EIN. See choosing a business bank account.
Step 7: Get a TPT license if you sell taxable goods or services
Arizona doesn’t have a traditional sales tax. Instead, it levies a transaction privilege tax (TPT) on the seller for the privilege of doing business. Most sellers pass it on to customers, much like sales tax. If your business sells taxable goods or services, apply for a TPT license through the Arizona Department of Revenue before your first sale. Many cities also levy their own TPT, generally licensed and collected through the same state system.
Step 8: Get licenses and permits
- Contractors need a license from the Arizona Registrar of Contractors for most jobs of $1,000 or more, or any job needing a permit. See our Arizona contractor leads guide.
- Many professions are licensed by state boards.
- Cities and counties issue zoning approvals, building permits and some business licenses.
No annual report, but keep records current
Arizona LLCs don’t file annual reports. That saves money and paperwork, but it means nothing reminds you to update the state. If your statutory agent, address, members or managers change, file the appropriate amendment with the ACC. An outdated statutory agent can mean you miss legal papers.
How an Arizona LLC is taxed
By default, LLC profits pass through to the owners, who pay federal income tax, self-employment tax and Arizona’s flat 2.5% personal income tax. Arizona also lets eligible pass-through entities elect to pay tax at the entity level, which can help owners with federal deduction limits. LLCs electing C corporation status pay Arizona corporate income tax. Ask a tax professional which option suits you.
Hiring your first employee in Arizona
In addition to the federal steps in our first employee guide, Arizona employers generally:
- Register for state withholding with the Department of Revenue.
- Register for unemployment insurance with the Department of Economic Security.
- Carry workers’ compensation insurance, required in Arizona once you have employees.
- Report new hires to the state’s new-hire reporting center.
- Follow Arizona’s minimum wage and earned paid sick time rules.
Your Arizona LLC compliance calendar
| Deadline | Filing | Paid to |
|---|---|---|
| Within 60 days of approval (if required) | Publication of formation notice | Approved newspaper |
| Monthly, quarterly or yearly (assigned) | TPT returns, state and city | Department of Revenue |
| Yearly | TPT license renewal | Department of Revenue |
| As assigned | Withholding returns, if you have employees | Department of Revenue |
| Quarterly | Unemployment insurance reports, if you have employees | Department of Economic Security |
| Whenever details change | Amendments, including statutory agent changes | ACC |
Example: state costs for your first two years
For a single-member LLC with a statutory agent in Maricopa or Pima County, using regular processing:
| Year 1 | Year 2 | |
|---|---|---|
| Articles of Organization | $50 | — |
| Publication | $0 (handled by the ACC) | — |
| Annual report | — | $0 |
| State formation and maintenance total | $50 | $0 |
Add a TPT license if you sell taxable goods or services, any contractor or professional license, and a commercial statutory agent if you use one. Outside Maricopa and Pima, add newspaper publication. Use our startup cost calculator to plan the rest.
Arizona rules for common types of business
Food businesses. Restaurants and food trucks are permitted by county health departments. Home bakers and candy makers can register with the state health department’s cottage food program to sell certain foods. See our cottage food business guide.
Childcare. Child care centers and group homes are licensed by the Arizona Department of Health Services, and smaller family providers may be certified for state assistance programs. See our home daycare guide.
Short-term rentals. Arizona rentals generally need a TPT license, and many cities require a local short-term rental permit.
Mistakes to avoid
- Ignoring publication when your statutory agent is outside Maricopa and Pima counties.
- Selling taxable goods or services without a TPT license.
- Contracting without a Registrar of Contractors license above the handyman limit.
- Forgetting to update the ACC when your agent or managers change, since there’s no annual report to prompt you.
- Mixing personal and business accounts.
Frequently asked questions
How long does it take to form an Arizona LLC? Regular processing can take several weeks; expedited processing is much faster.
Does Arizona require an annual report for LLCs? No. Arizona corporations file annual reports, but LLCs don’t.
Do I have to publish my LLC? Only if your statutory agent’s address is outside Maricopa and Pima counties. Your ACC approval letter will confirm.
Can I be my own statutory agent? Yes, if you have a physical Arizona street address and sign the acceptance. Your address becomes part of the public record.
Are member and manager names public? Yes. Arizona’s Articles list members or managers, so they appear in the ACC’s records. Using a commercial statutory agent keeps your home address private, though not your name.
I live in Arizona. Should I form in Wyoming or Delaware? Usually not. Arizona is already inexpensive, and an out-of-state LLC doing business here would also need to register in Arizona.
Next steps
Read the Start a Business A–Z guide, see how to get your first 10 customers, and plan with the startup cost calculator.
This guide is general information, not legal or tax advice. Fees and rules change; check the Arizona Corporation Commission and Department of Revenue before you file.
Sources
- Stripe, How to form an LLC in Arizona
- Zenind, How much does an LLC cost in Arizona (2026)
- Inc Authority, How to start an Arizona LLC (2026)
- Arizona Corporation Commission
Last reviewed October 18, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
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