How Much Does an LLC Cost in Arizona? (Filing Fees 2024)

Starting a Limited Liability Company (LLC) in Arizona involves some mandatory fees, beginning with a $50 filing fee for the Articles of Organization. The good news? Unlike many other states, Arizona doesn’t require an annual report fee, which can save you money each year.

However, there are other optional expenses to consider, such as registered agent services, DBA registration if you’re using a different business name and any necessary licenses your business might need.

How Much Does an LLC Cost in Arizona?

Starting an LLC in Arizona involves several costs that you need to plan for to ensure a smooth setup. Understanding these costs upfront will help you budget effectively and avoid surprises, from the initial filing fees to other potential expenses.

Here’s a breakdown of what you can expect:

• Articles of Organization Filing Fee: The most immediate cost is the $50 filing fee for the Articles of Organization. If you need your filing processed faster, you can choose expedited processing for an additional $85.
• No Annual Report Fee: Arizona does not require an annual report fee, which helps reduce ongoing costs.
• Publication Requirement: Arizona requires you to publish a notice of your LLC formation in a local newspaper. Depending on the newspaper’s rates, this cost typically ranges from $60 to $300.
• LLC Name Reservation: This will cost $10 to reserve your LLC name before filing.
• Certificate of Good Standing: If you need a Certificate of Good Standing, it costs approximately $10.
• DBA (Doing Business As) Registration: If you plan to operate under a different name, registering a DBA costs $10.
• Formation Service Fees: If you choose to use a formation service like Northwest Registered Agent, their fees start around $39, in addition to state fees.
• Registered Agent Services: Depending on the service provider, you’ll need a registered agent, typically costing $100 to $300 per year.
• Transaction Privilege Tax (TPT) License: If applicable to your business, the cost for a TPT license varies based on your business activities.

By considering these expenses, you can effectively budget for the formation of your LLC and ensure a successful start to your business in Arizona.

LLC Costs in Arizona (Formation Fees)

Here’s a table that outlines the main fees and requirements for starting an LLC in Arizona:

Arizona LLC Requirements	Cost
LLC Business Name Cost	$0
Articles of Organization	$50
Arizona LLC Newspaper Publication	Varies
Transaction Privilege Tax	Varies (state rate applies)
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$0
LLC Name Reservation Fee (optional)	$10
Certificate of Good Standing (optional)	$10
Foreign LLC Registration (optional)	$150
Fictitious Name (DBA) (optional)	$10
Taxes	Varies
Arizona Business License or Permit	Varies
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in Arizona	$50 – $500

Total Arizona LLC costs range from $50 to $500. If you do everything yourself and skip the optional extras, you might only spend around $50. However, if you decide to pay for additional services and requirements, your costs could go up to between $400 and $500.

To break it down, the first mandatory expense is the $50 fee for filing the Articles of Organization, which is essential for officially establishing your LLC.

Additionally, while there is no annual report fee in Arizona, you may incur costs related to the Arizona LLC Newspaper Publication, which can vary based on local rates. You’ll also need to consider the Transaction Privilege Tax, which varies according to the state rate.

Now, let’s discuss the optional costs.

An Operating Agreement is recommended but can be obtained at no cost using services like Northwest. Obtaining an Employer Identification Number (EIN) is free from the IRS.

Reserve your LLC name, which typically costs $10. You may also want a Certificate of Good Standing, which costs $10. Registering a foreign LLC in Arizona incurs a fee of $150. If you wish to operate under a different name (DBA), you must pay an additional $10.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300. If you choose to use LLC formation services, that normally costs around $39.

Remember that taxes and the Arizona Business License or Permit can vary based on your business activities.

Arizona LLC Business Name Cost ($0)

When starting your LLC in Arizona, reserving a business name does not require a fee. You can choose a unique name without spending any money. This process allows you to secure a name before officially filing your Articles of Organization.

To reserve your business name, check the Arizona Corporation Commission’s website. You’ll want to ensure your desired name is available and meets state requirements.

If you decide to reserve the name, you can do so for up to 120 days. This reservation gives you time to prepare documents without worrying about someone claiming your chosen name.

While reserving the name is optional, it can be a good idea if you’re not ready to file your LLC immediately. If you proceed without reservation, just be mindful that your name must be unique and compliant with Arizona naming rules.

Arizona Articles of Organization ($50)

To start your LLC in Arizona, you must file the Articles of Organization. This document is essential for officially creating your business entity.

The filing fee for the Articles of Organization is $50. You can file by mail or online, and the processing times are the same for both methods.

If you want faster service, an expedited filing option costs $85. This can be beneficial if you’re eager to get your business up and running quickly.

Once submitted, Arizona LLC processing time for standard filings usually takes 2 to 5 weeks, depending on how you file. If you file online, you can expect approval for your Arizona LLC in approximately three weeks, while mail filings typically take longer, around 4 to 5 weeks.

Remember, this filing fee is a one-time cost. After establishing your LLC, no monthly or annual fees are required to maintain its status in Arizona, making it straightforward for new business owners.

Arizona LLC Newspaper Publication Requirement (varies by county)

When you form an LLC in Arizona, you must follow the newspaper publication requirement. This law requires you to publish a Notice of LLC Formation in a newspaper in your business’s county.

You must publish this notice for three consecutive weeks. This helps notify the public about your new business. The entire process typically takes about 1-2 weeks.

The cost of publication can vary greatly depending on the newspaper. You could pay anywhere from $30 to $300. Most newspapers charge by line or offer a flat rate for such notices.

Complete this requirement within 60 days of the state approving your LLC. Failure to publish may result in penalties or administrative issues for your LLC. Thus, it’s best to stay compliant with this important step.

Transaction Privilege Tax (Varies by business activity and location)

In Arizona, if you run a business, you may need to pay a Transaction Privilege Tax (TPT), often called a sales tax. This tax applies to various types of business activities.

The TPT is based on your gross income from business operations. Rates can vary depending on the city and your business type.

To operate legally, you must obtain a TPT license. The license fee is $12 per location, and it allows you to collect customer taxes. However, you may not need a license if your business earns under $10,000 annually and is under 19 years old.

Check with the Arizona Department of Revenue and your local city government for the specific rates and regulations that apply to your business.

Filing your TPT returns correctly and on time is essential. Failure to do so could result in penalties.

LLC Operating Agreement Cost in Arizona ($0 with Northwest)

Creating an LLC operating agreement in Arizona is important. This document outlines the management structure and operating procedures of your LLC. While some companies charge a fee for preparing this agreement, you can get it free with Northwest Registered Agent.

With Northwest, you don’t pay anything for the operating agreement, which can save you money, especially if you’re just starting out.

This clarity helps prevent future disputes among members. An operating agreement provides structure even if you have few members or are a single-member LLC.

If needed, you can customize the agreement using a template. Northwest offers easy-to-follow instructions to help you fill it out correctly.

Although not having an operating agreement is not a legal requirement in Arizona, many experts recommend it as a best practice. It shows that you are serious about your business. With Northwest, you have a reliable resource to help you create this essential document at no cost.

Arizona Registered Agent Fee ($0-$300/year)

When you start an LLC in Arizona, you need a registered agent. You can act as your registered agent for free. To do this, provide your name and address. This option is straightforward and saves you money.

If you prefer to hire an Arizona registered agent service, the costs vary. Most services charge between $100 and $300 per year. For instance, LegalZoom typically charges about $249 annually, while ZenBusiness offers services for $199 a year.

Northwest Registered Agent provides a competitive offer. They allow you to use their services for free during your first year when you form your LLC through them. After that, their fee is just $125 annually. This makes it a cost-effective choice for many business owners.

In general, hiring a professional registered agent can be beneficial. They help protect your privacy and manage important documents on your behalf.

EIN Cost in Arizona ($0 from the IRS website)

When starting an LLC in Arizona, you need an Employer Identification Number (EIN). The good news is that you can obtain this number for free directly from the IRS.

To get your EIN, visit the IRS website. The application process is simple, and you can apply online.

While some services may charge fees to help obtain an EIN, it is unnecessary. You can complete the application on your own at no cost.

Arizona Annual Report Fee ($0)

In Arizona, limited liability companies (LLCs) do not have to pay a fee for annual reports. This means you can maintain your LLC without worrying about ongoing costs for annual filings.

Arizona has streamlined the process, unlike some states requiring regular reports and fees. You will not face any financial burden related to an annual report, which can be a significant advantage for business owners.

You should keep records updated even though you don’t have an annual report fee. Monitoring your business information and renewing necessary licenses or permits is essential. Additionally, be aware of the state’s requirements for any changes in your LLC.

Although there’s no fee for the annual report, keep in mind that other costs may arise during the life of your LLC. These can include initial filing fees, publication fees, and other specific permits relevant to your business.

Fictitious Name/DBA Cost in Arizona ($10)

If you want to operate your business under a name different from yours, you must register a fictitious name, commonly known as a DBA (Doing Business As). In Arizona, the cost to file a DBA is $10.

The process is straightforward. First, verify the availability of your desired name to ensure no one else is using it. You can do this on the Arizona Secretary of State’s website.

Once your name is available, fill out the Trade Name Registration Application. This can be done online, making it easy and convenient. After completing the form, you will pay the $10 filing fee.

Remember, registering a DBA in Arizona lasts for five years. You must renew it online every five years at the same $10 cost.

LLC Name Reservation Fee in Arizona ($10)

When starting an LLC in Arizona, you can reserve your business name. This helps ensure that someone else does not take your chosen name during registration.

The fee for reserving an LLC name in Arizona is $10. This one-time payment allows you to hold your desired name for some time.

To reserve a name, you can submit your application online or through paper forms. If you prefer to avoid the expedited fee, you can send your application by mail or deliver it in person to the Arizona Corporation Commission.

Remember that this name reservation does not guarantee approval of your LLC. The name must still meet state requirements and should not be similar to existing businesses.

Arizona Certificate of Good Standing ($10)

A Certificate of Good Standing is an important document for your LLC in Arizona. This certificate shows that your business is registered and complies with state laws.

You can get this certificate online for a fee of $10. If you need it faster, you can expedite the process for an additional charge of $35, bringing the total to $45.

You can use the Arizona Corporation Commission’s online service to request a Certificate of Good Standing. This is often the quickest and easiest way.

Remember that this certificate can be essential if you plan to do business with banks, vendors, or other entities. It’s a clear proof that your LLC is in good standing with the state.

Arizona Foreign LLC Registration Fee ($150)

If you want to register a foreign LLC in Arizona, you will need to pay a registration fee of $150. This fee applies when your LLC is formed in another state and you want to operate in Arizona.

To register, you must fill out the appropriate forms. You can submit these forms either by mail or in person. Make sure to include your payment when you submit your application.

Arizona offers expedited service for an additional cost if you prefer faster processing. The exact amount may vary depending on how quickly you need the paperwork completed.

If you are mailing your application, you must pay the fee by check or money order. You can also pay in cash if you register in person.

Arizona Business License or Permit (varies)

You may need a business license or specific permits when starting an LLC in Arizona. The cost and requirements for these can vary based on your location and the type of business you plan to operate.

In Arizona, business licenses can range from $12 to $200. The exact fee depends on your city or county and the nature of your business. Some businesses might need more than one license or permit.

Here are a few common types of permits you might need:

• Sales Tax Permit: If you sell goods, this allows you to collect sales tax.
• Health Permit: Necessary for food-related businesses.
• Zoning Permit: Ensures your business location complies with local zoning laws.

Arizona LLC Taxes (varies)

Regarding taxes for LLCs in Arizona, several factors influence what you might owe. Here’s a breakdown of the key tax considerations:

• Federal Taxes: By default, LLCs are treated as pass-through entities for federal tax purposes. This means the LLC does not pay federal income taxes; profits and losses pass through to the members, who report them on their personal income tax returns. Alternatively, LLCs can choose to be taxed as corporations by filing an election with the IRS. This could be beneficial depending on your business situation and tax planning strategies.
• Arizona State Taxes: If your LLC engages in taxable business activities in Arizona, you must obtain a TPT license. The TPT is a tax on the privilege of doing business in the state and varies based on your business activities and gross revenue. Rates and obligations can vary widely depending on the nature of your business.
• Arizona Income Tax: Arizona does not impose a separate state income tax on LLCs. Instead, LLCs are treated as pass-through entities, and profits are taxed on the member’s personal income tax returns. However, if you choose for your LLC to be taxed as a corporation, it will be subject to Arizona corporate income tax.
• Self-Employment Taxes: LLC members participating in the business are subject to self-employment taxes on their share of the LLC’s income. This tax covers Social Security and Medicare contributions.
• Other Taxes and Fees: Depending on your business activities, you may encounter other taxes or fees, such as local or licensing fees required by your city or county.

Arizona LLC reinstatement fee ($100)

If your Arizona LLC is administratively dissolved, you must reinstate it to continue doing business. The process for reinstatement involves a fee of $100.

You will also need to resolve any issues that led to the dissolution. This may include filing necessary paperwork or paying other outstanding fees.

This fee applies regardless of when you submit your reinstatement request. It is important to act quickly to avoid further penalties or complications.

You can pay the reinstatement fee online or by mail. Keep a copy of your payment and any documents for your records. This can help prevent future problems with your LLC’s status.

Arizona LLC dissolution fee ($35)

When you decide to dissolve your LLC in Arizona, there is a filing fee of $35. This fee is required when you submit your Articles of Dissolution to the Arizona Corporation Commission.

You have a few options for handling the dissolution process. You can file your documents online, by mail, or in person. Each method requires the same $35 fee.

If you choose to file by mail, send your Articles of Dissolution to:

Arizona Corporation Commission
Corporate Filings Section
1300 W. Washington St.
Phoenix, Arizona 85007

Make sure to include your payment. The payment will be processed through the submission portal if you’re filing online.

Be aware that all fees are nonrefundable, including the filing fee. So, ensure that your decision to dissolve is certain before proceeding.

You might consider expedited options for faster processing. However, the expedited fee is in addition to the $35 dissolution fee.

Arizona LLC Change of Registered Agent fee ($5)

Changing your registered agent in Arizona comes with a straightforward fee of $5. This fee applies when you file the necessary forms with the Arizona Corporation Commission.

You must complete a Statement of Change form to change your registered agent. This document is essential for updating your company records. You can submit the form by mail, fax, or in person.

Processing time for this change is generally 5 to 10 business days. Consider this when planning your change.

It’s crucial to stay updated with your registered agent information. Having a reliable agent ensures that you receive important legal documents and notices.

What is the Cheapest Way to Start an Arizona LLC?

Starting an LLC in Arizona can be done differently, but some methods can save you money. The main cost comes from filing the Articles of Organization, which is required to form your LLC.

The filing fee is $50 for regular processing. You can pay $85 for expedited service if you want faster processing. Filing online is generally quicker and often preferred over mailing documents since it reduces delays.

You can save on costs by handling the LLC formation yourself. This means you skip hiring a formation service or attorney, which can be more expensive. Using official state resources for filing can keep your expenses down.

While doing it yourself is the cheapest method, there are some drawbacks. Filling out legal documents can be confusing if you are not familiar with the process. Mistakes could lead to delays or additional costs. Also, without professional guidance, you may miss out on important details that could affect your business.

The cheapest way to start your Arizona LLC is to take care of everything yourself while filing online. This method minimizes costs, but it requires careful attention to detail. It would be best to weigh the potential risks against the savings you achieve.

Should You Use an LLC Formation Service in Arizona?

When starting an LLC in Arizona, you might wonder if you should use a formation service. Having a reliable service can offer several advantages.

• Paperwork Handling: Using a service like Northwest Registered Agent means you won’t have to handle the paperwork yourself. They care for the details, allowing you to focus on running your business.
• Privacy: An LLC formation service helps keep your personal information off public records, providing confidentiality that is often difficult to achieve independently.
• Peace of Mind: Access to experienced professionals who can answer your questions and offer free consultations with attorneys, providing valuable support as you start your business.
• Compliance: Ensures that you meet all legal requirements, helping you avoid potential legal issues and maintain proper compliance.

Still, consider the cost. While formation services can be convenient, they charge fees in addition to state filing costs. If you’re on a tight budget, this is something to consider.

Frequently Asked Questions

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

Reinstating a dissolved LLC in Arizona requires submitting a request for reinstatement along with any outstanding fees or taxes. Currently, the reinstatement fee is $100, plus any additional penalties accrued.

Is Arizona LLC worth it?

An Arizona LLC can provide limited liability protection and enhance your business credibility. The state’s business climate, favorable taxes, and low formation costs make it an attractive option for many entrepreneurs.

Do I need an Arizona address for my LLC?

Yes, your LLC must have a physical address in Arizona. This address will be used for legal documentation and must not be a P.O. Box. It is where official notices and communications will be sent.

Do I need a business license if I have an LLC in Arizona?

Yes, depending on your specific business activities in Arizona, you may need a business license or permit. Check with local authorities to ensure compliance with all applicable regulations.

Do I need to hire an attorney to form an LLC in Arizona?

You are not required to hire an attorney to form an LLC in Arizona. However, consulting with one can help you understand the legal aspects and ensure all documents are correctly filed.

Should I hire an LLC formation service in Arizona?

Using an LLC formation service can simplify the process by handling paperwork and ensuring compliance. This option is beneficial if you want to save time and reduce the risk of errors.

Are there penalties for paying my fees late in Arizona?

Yes, penalties exist for not paying your annual LLC fees on time. Late payments can lead to additional charges and affect your LLC’s good standing with the state.

What happens if I do not file my Arizona LLC annual report?

Failure to file your LLC’s annual report can result in penalties, including fines and possible dissolution. Staying compliant is essential to avoiding losing your business status in Arizona.