Updated on: November 22nd, 2024

Arizona LLC Costs – Prices You Need to Know When Forming an AZ LLC

Jump to Quick Arizona LLC Costs List

Arizona is a good place to start a business seeing that it has an average of 3.3% from 2014 to 2019 and ranks 9th out 50 states. In terms of taxes, Arizona has one of the lowest rates and, in general, business-friendly. The great weather is just another reason to put your headquarters in Arizona.

If you don’t want the hassle of forming and maintaining a corporation, a limited liability company is the best entity type for your business.

Recommended:

Hire professional help
ZenBusiness (just $0 + State fees)
or
Northwest (only $39+ State fees)
to form an Arizona LLC for you.

How Much Does It Cost To Incorporate an LLC in Arizona?

When creating an LLC in Arizona you can expect to spend a minimum of $180 and a maximum of $740 US dollars. The exact price will depend on your selected services, so to find out more details — we encourage you to read on further.
But for now, let’s take a look at the main reasons why you would want an AZ LLC.

5 Reasons For Forming An LLC in Arizona

Here are some advantages of forming an LLC in Arizona:

  • There are fewer document filings compared which creates more time for running the company than having to deal with corporate housekeeping.
  • You will enjoy limited personal liability. You can separate your personal resources from your business. The separation will help you avoid being liable for your business’ obligations and debts.
  • Unlike corporations that needs approval from shareholders and board of directors, an LLC has the flexibility to act without going thru the process since there is no shareholder or board of director to get approval from.
  • You can choose how to be taxed as an LLC, either as a sole proprietor or a partnership.
  • Lastly, having an LLC provides assurance to your customers that your business is legitimate.

Important: here is our full Arizona LLC incorporation guide.

How Much Does It Cost To Create An LLC in Arizona?

That might be the first question that comes to mind when embarking on a new venture.

To set your expectation it will only take you a minimum of $180 and a maximum of $740. The cost will depend on the type of services you will acquire.

Below are the basic costs you may acquire when you are forming your LLC:

RequirementsCost
Choosing an LLC Name$0
Hiring a Statutory Agent$100 to $300
Securing your LLC name$10 to $45
Filing Fee$40 to $95

You are not required to file an annual report for an LLC in Arizona. That means you do not have any annual cost aside from maintaining your statutory agent.

These costs are mandatory and you can’t avoid them. But.. you can save your time and headache by hiring our #1 recommended LLC service — Zenbusiness to do all the work for you starting from just $49!


Different Entity Types

Sole Proprietorship is the entity type that has the least documents to file because there are no required documents to file. Unfortunately, this business entity will take up the identity of the owner and does not separate the property of the owner from the business. This means that the personal property of the owner may be collected to settle the obligations of the company.

Limited Liability Companies (LLC) on the other hand provide limited personal liability which means that there is a separation between the owner’s personal property and that of the company. This presents the following advantages:

  • The company’s obligations can only be settled using the only property of the company.
  • In a legal dispute, only the company can be sued for the agreements it entered in.
  • There are no ownership restrictions. An S-corporations is limited to having 100 stockholders who are natural persons and a US resident.
  • LLCs can use the cash method of accounting while other types of entities are limited to accrual method.
  • LLC members can place their membership interests in a living trust
  • Members can deduct operating losses against the members operating income provided it is within the intent of the law.
  • LLCs avoid double taxation because they are treated as a pass-thru entity

Although Corporations enjoy liability protection similar to LLCs they are encumbered with more paperwork and costs compared to LLC or sole proprietorship.


How To Start?

Here are the 8 steps with their basic costs to create your LLC in Arizona:

  1. Choose a name for your business.
  2. Get a Registered Agent for Your AZ LLC
  3. Secure the name you chose
  4. File with the Arizona Corporation Commission Corporations Division
  5. Contact the Arizona Department of Revenue (ADOR)
  6. Register your business entity with the city where it is located
  7. Obtain an EIN or TIN
  8. Publish Notice of Incorporation

1. Choose A Business Name

Name-Your-LLC

A business name plays an important role in its development. Ensure that the business name you chose is not already taken by conducting a search here or you can use Google.

Don’t forget to include the Limited Liability Company or LLC at end of your name

There is no cost yet at this point. But if it is already taken or there is another name that is very similar to the one you chose. It is best that you consult an attorney.


3. Hire A Statutory Agent (Cost: ~$100-300)

Registered-Agent

Starting a business may be scary because of the administrative steps that needs to be taken, resources to be identified and, in the absence of both, the costs that it will take to start a business remains unclear.

Starting a business is easier with proper assistance from a Zenbusiness or Northwest registered agent.

Ensure that the statutory agent accepted the appointment by completing and submitting the Statutory Agent Acceptance form.

Expect the cost of hiring a registered agent to range from $100 to $300.


3. Secure The Name You Chose (Cost: $10-$45)

Once you have identified the name you will use, you have to reserve it. Reservation is only valid up to 120 days.

The filing fee is $45 for online filing and $10 for snail mail. You will need to pay another $10 dollar if you have a trade name in which case you will need to file a Trade Name Application.


4. File with the Arizona Corporation Commission Corporations Division (Cost: $40-95)

Submit your formation documents which are:

Expect to pay $40 to $95 as filing. A different rate applies if you want your application expedited

You may file your application online here.


5. Contact The Arizona Department Of Revenue

Check with ADOR whether you need to complete a transaction privilege tax application. You can check their website at www.azdor.gov and also that of Arizona Commerce Authority Small Business Services at http://www.azcommerce.com/. They will be able to advise you whether you need transaction privilege tax.


6. Register Your Business Entity With The City Where It Is Located (Cost: Free)

When you are done with all the steps enumerated above, register your LLC in the city where it is located. Check the Arizona Commerce Authority Small Business Services website at www.azcommerce.com. There you will find links to sites regarding taxes and licenses.


7. Obtain An EIN or TIN (Cost: FREE)

Employer-Identification-Number-IEN

Go to the Internal Revenue Service (IRS) website (www.irs.gov) to get your EIN (Employer Identification Number) or TIN (Tax Identification Number).


8. Publish A Notice Of Incorporation (Cost: $30-$300)

Once the Articles of Incorporation is released, it needs to be published within 60 days. It needs to be published in a newspaper of general circulation in the county of the place of business for 3 consecutive publications.

The cost of publication ranges from $30 to $300 depending on the county.

The publication is not required for corporations located in Maricopa or Pima counties.


Arizona’s Schedule of Fees

Now that you have completed the formation of you may want to take note of other costs that a corporation, in general, may rack up as you operate your LLC:

DOCUMENT or SERVICE ITEMFEES
  Corporation Document TypeTotal Fee for Regular ProcessingTotal Fee for Expedited Processing
Affidavit of PublicationNo Fee$35
Amended Annual ReportNo Fee$35
Annual Report – For profit corporation$45.00$ 80.00
Annual Report – Nonprofit corporation$ 10.00$ 45.00
Annual Benefit Report (Benefit Corporations only)$ 10.00$ 45.00
Application for Authority to Transact Business or Conduct Affairs In Arizona$ 175.00$ 210.00
Application for Reinstatement$ 100.00$ 135.00
Application for Use of Indistinguishable Name$ 10.00$ 45.00
Application for Withdrawal$ 25.00$ 60.00
Application to Register Name$ 10.00$ 45.00
Application to Reserve Corporation Name$ 10.00$ 45.00
Articles of Amendment$ 25.00$ 60.00
Articles of Correction$ 25.00$ 60.00
Articles of Dissolution$ 25.00$ 60.00
Articles of Domestication$ 100.00$ 135.00
Articles of Incorporation – For-profit corporation$ 60.00$ 95.00
Articles of Incorporation – Nonprofit corporation$ 40.00$ 75.00
Articles of Revocation of Dissolution$ 25.00$ 60.00
Certificate of Disclosure
Certificate of Disclosure – Supplemental  
Certificate of Good Standing$ 10.00$ 45.00
Notice of Cancellation of Approved Corporation Name Reservation or RegistrationNo fee$ 35.00
Notice of Transfer of Corporation Name Reservation$ 10.00$ 45.00
Officer/Director Change FormNo fee$ 35.00
Restated Articles of Incorporation or Amended and Restated Articles of Incorporation$ 25.00$ 60.00
Statement of ChangeNo fee$ 35.00
Statement of Merger, Interest Exchange, Conversion, Domestication, Division$ 100.00$ 135.00
Statement Pursuant to § 10-602$ 25.00$ 60.00
Statutory Agent Resignation$ 10.00$ 45.00
SERVICE
Archival Records Search$ 5.00 $ 40.00
Copy of document – uncertified$0.50 per page$ 35.00 per page plus $.50 per page
Copy of document – certified$ 5.00 plus $.50 per page$ 40.00 plus $.50 per page
Certificate (not for copies)$ 10.00$ 45.00
Records/Service Request FormSee formSee form
Service of Process$ 25.00n/a

The schedule of fees is published in https://www.azcc.gov/corporations. Note that the charges for expedited processing are $35 added to the document filing fee or to the fee for the service.

If you are wondering how long your application will take, below are the processing times that Arizona published on its website:

CORPORATIONS DIVISION DOCUMENT PROCESSING TIMES As of Monday, February 28, 2022
Document TypeExpeditedNon-Expedited
Processing Times in Business DaysDate Working OnProcessing Time in Business DaysDate Working On
LLC – new filings – all6-802/17/2213-1502/08/22
Corporations – new – filing -all3-502/23/2213-1502/08/22
Amendments – all4-602/22/2218-2002/01/22
Changes  address/officers/agent3-502/23/2214-1602/07/22
Agent Resignations1-302/25/2213-1502/08/22
Annual Reports1-302/25/2213-1502/08/22
All other documents4-602/22/2213-1502/08/22
Same day/Next day servicesAll SD/ND Services are current and up-to-date

You should calculate the processing times beginning the next full business day after you submitted and the documents are duly received by the Arizona Corporation Commission. However, additional time may be required when the documents are examined and returned for correction or completion.

Last Word

Costs and fees to start an LLC in Arizona definitely varies. But all in all, it will cost you around ~$200-$300.

In addition, most people don’t really like dealing with legal paperwork themselves, so they tend to hire professional companies to do all the work for them.
And before you think about lawyers and thousands of dollars — nope, it isn’t that expensive. In fact, it’s quite cheap compared to the time you save.

We recommend reading more about our reviews on ZenBusiness and Northwest – the top companies that we can personally vouch for. They will do the job right if you decide to hire them for your Arizona LLC needs.


FAQs

Now that you know more about the formation of an LLC and would like to know more to proceed, here are links where you can find more information in forming LLCs in Arizona:

Get Some More Knowledge About Business & LLCs

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