How to Start an LLC in Arizona (Step-by-Step Guide)

Arizona is one of the most business-friendly states in the country, with a straightforward LLC formation process, low filing fees, and — uniquely — no annual report requirement. You can form an Arizona LLC online through the Arizona Corporation Commission (ACC) for just $50.

This guide walks you through every step of forming an LLC in Arizona, from naming your company to getting your tax licenses in order.

How to Start an LLC in Arizona (6 Steps)

Step 1: Name Your Arizona LLC

Your LLC name must be distinguishable from any existing business entity registered with the Arizona Corporation Commission. Arizona naming rules require that your name:

• Must include “Limited Liability Company,” “LLC,” or “L.L.C.”
• Cannot include words suggesting it is a corporation (e.g., “Inc.” or “Corp.”)
• Cannot include restricted words like “Bank,” “Trust,” or “Insurance” without additional approvals

Use the Arizona business name search tool on the ACC website to check name availability before filing. You can also reserve a name for 120 days by filing a Name Reservation with the ACC for $10.

Step 2: Choose a Statutory Agent

Arizona requires every LLC to designate a statutory agent (called a “registered agent” in most other states). Your statutory agent receives legal documents and official correspondence on behalf of your LLC.

Your statutory agent must:

• Be an Arizona resident with a physical street address in the state, OR
• Be a business entity authorized to do business in Arizona
• Be available at the listed address during normal business hours

You can serve as your own statutory agent if you have an Arizona address, but most LLC owners use a professional service for privacy and reliability. Professional statutory agent services typically cost $125–$300 per year. See our Arizona registered agent guide for recommended services.

Step 3: File Articles of Organization

File your Articles of Organization with the Arizona Corporation Commission to officially create your LLC. You can file online through the ACC’s eCorp system or by mail.

Information required:

• LLC name
• Statutory agent name and address
• Principal address of the LLC
• Management structure (member-managed or manager-managed)
• Names and addresses of all members or managers
• Effective date (can be up to one year in the future)

Filing fee: $50 (online). Paper filings cost $50 plus an additional handling fee. Expedited processing is available for $35 extra (24-hour turnaround).

Online filings are typically processed within 5–10 business days. You’ll receive a stamped copy of your Articles of Organization once approved.

After filing with the ACC, Arizona also requires you to publish your Articles of Organization in an ACC-approved newspaper in the county where your LLC is located, for three consecutive publications. This must be completed within 60 days of formation. Publication costs vary by county but typically range from $30 to $300. After publication, file an Affidavit of Publication with the ACC.

Step 4: Create an Operating Agreement

Arizona does not legally require LLCs to have an operating agreement, but having one is strongly recommended. An operating agreement defines:

• Ownership percentages and capital contributions
• Profit and loss distribution
• Member roles and responsibilities
• Voting rights and decision-making procedures
• Rules for adding or removing members
• Dissolution procedures

Without an operating agreement, your LLC defaults to Arizona’s LLC statutes (ARS Title 29), which may not align with your intentions. This is especially important for multi-member LLCs. Learn more in our operating agreement guide.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. You need an EIN if your LLC has more than one member, has employees, or is taxed as a corporation. Even single-member LLCs benefit from having an EIN — most banks require one to open a business bank account.

Applying for an EIN is free and can be done online at IRS.gov in about 5 minutes. You’ll receive your EIN immediately after completing the application.

Step 6: Register for Arizona Taxes and Licenses

Depending on your business activities, you may need to register for Arizona’s Transaction Privilege Tax (TPT). Arizona’s TPT is similar to a sales tax but is levied on the seller rather than the buyer. If your LLC sells taxable goods or services, you must obtain a TPT license from the Arizona Department of Revenue.

You can register for a TPT license online through AZTaxes.gov. There is no fee for the license itself, but you’ll need to pay applicable taxes based on your business classification.

If your LLC has employees, you’ll also need to register for:

• Arizona withholding tax (Arizona Department of Revenue)
• Unemployment insurance tax (Arizona Department of Economic Security)
• Workers’ compensation insurance (required for most employers)

Arizona LLC Costs

Arizona is one of only a few states that does not require LLCs to file an annual report or pay an annual fee, making it one of the most affordable states for ongoing LLC maintenance. For a full breakdown, see our LLC costs by state guide.

Arizona LLC Taxes

By default, Arizona LLCs are treated as pass-through entities for federal tax purposes:

• Single-member LLCs are taxed as sole proprietorships. Income passes through to your personal tax return (Form 1040, Schedule C).
• Multi-member LLCs are taxed as partnerships. The LLC files an informational return (Form 1065), and each member reports their share on their personal return.

Arizona’s individual income tax rate is a flat 2.5% as of 2026. There is no separate state-level LLC tax or franchise tax in Arizona.

If you elect to have your LLC taxed as a corporation (S-corp or C-corp), the Arizona corporate income tax rate is a flat 4.9%.

Arizona LLCs that sell taxable goods or services must collect and remit Transaction Privilege Tax (TPT). TPT rates vary by city and business classification but generally range from 5.6% to 10.7% combined (state + county + city).

Annual Requirements for Arizona LLCs

Arizona makes ongoing compliance simple:

• No annual report: Arizona does not require LLCs to file annual reports — one of the biggest advantages of forming here.
• Maintain a statutory agent: Keep your statutory agent designation current with the ACC.
• File taxes: File your federal and state income tax returns on time.
• Renew business licenses: If your city or county requires business licenses, keep them current.
• TPT filing: If registered for TPT, file returns monthly, quarterly, or annually depending on your volume.

If any of your LLC’s information changes (address, statutory agent, members/managers), file the appropriate amendment with the ACC.

Frequently Asked Questions

How long does it take to form an LLC in Arizona?

Online filings through the ACC are typically processed within 5–10 business days. Expedited processing (24-hour turnaround) is available for an additional $35. After formation, you have 60 days to complete the newspaper publication requirement.

Does Arizona require an annual report for LLCs?

No. Arizona is one of the few states that does not require LLCs to file annual reports or pay annual fees to the state. This makes ongoing compliance simpler and cheaper compared to most other states.

What is Arizona’s publication requirement?

After filing your Articles of Organization, you must publish them in an ACC-approved newspaper in the county where your LLC’s principal office is located. The notice must run for three consecutive publications. Costs vary by county — Maricopa County publications typically cost $30–$100, while rural counties may cost more. You must file an Affidavit of Publication with the ACC within 60 days.

Can I be my own statutory agent in Arizona?

Yes, as long as you are an Arizona resident with a physical street address in the state (not a P.O. box). You must be available at that address during normal business hours to receive legal documents. Many LLC owners prefer professional statutory agent services for privacy and reliability.

How much does it cost to start an LLC in Arizona?

The minimum cost is $50 for the Articles of Organization filing fee, plus $30–$300 for the publication requirement. If you use a professional statutory agent, add $125–$300 for the first year. Total first-year costs typically range from $80 to $650, depending on your choices. Learn more about forming an LLC in any state.

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