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)
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to form an Arizona LLC for you.
- Jump to Quick Arizona LLC Costs List
- How Much Does It Cost To Incorporate an LLC in Arizona?
- 5 Reasons For Forming An LLC in Arizona
- How Much Does It Cost To Create An LLC in Arizona?
- Different Entity Types
- How To Start?
- 1. Choose A Business Name
- 3. Hire A Statutory Agent (Cost: ~$100-300)
- 3. Secure The Name You Chose (Cost: $10-$45)
- 4. File with the Arizona Corporation Commission Corporations Division (Cost: $40-95)
- 5. Contact The Arizona Department Of Revenue
- 6. Register Your Business Entity With The City Where It Is Located (Cost: Free)
- 7. Obtain An EIN or TIN (Cost: FREE)
- 8. Publish A Notice Of Incorporation (Cost: $30-$300)
- Arizona’s Schedule of Fees
- Last Word
- FAQs
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:
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:
Requirements | Cost |
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:
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:
- Choose a name for your business.
- Get a Registered Agent for Your AZ LLC
- Secure the name you chose
- File with the Arizona Corporation Commission Corporations Division
- Contact the Arizona Department of Revenue (ADOR)
- Register your business entity with the city where it is located
- Obtain an EIN or TIN
- Publish Notice of Incorporation
1. Choose A Business Name
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)
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)
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 ITEM | FEES | |
Corporation Document Type | Total Fee for Regular Processing | Total Fee for Expedited Processing |
Affidavit of Publication | No Fee | $35 |
Amended Annual Report | No 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 Registration | No fee | $ 35.00 |
Notice of Transfer of Corporation Name Reservation | $ 10.00 | $ 45.00 |
Officer/Director Change Form | No fee | $ 35.00 |
Restated Articles of Incorporation or Amended and Restated Articles of Incorporation | $ 25.00 | $ 60.00 |
Statement of Change | No 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 Form | See form | See form |
Service of Process | $ 25.00 | n/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 Type | Expedited | Non-Expedited | ||
Processing Times in Business Days | Date Working On | Processing Time in Business Days | Date Working On | |
LLC – new filings – all | 6-8 | 02/17/22 | 13-15 | 02/08/22 |
Corporations – new – filing -all | 3-5 | 02/23/22 | 13-15 | 02/08/22 |
Amendments – all | 4-6 | 02/22/22 | 18-20 | 02/01/22 |
Changes address/officers/agent | 3-5 | 02/23/22 | 14-16 | 02/07/22 |
Agent Resignations | 1-3 | 02/25/22 | 13-15 | 02/08/22 |
Annual Reports | 1-3 | 02/25/22 | 13-15 | 02/08/22 |
All other documents | 4-6 | 02/22/22 | 13-15 | 02/08/22 |
Same day/Next day services | All 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
How do I submit my documents for filing?
You may submit your document thru online, snail mail or fax. However, Arizona recommends that you submit your documents thru the Arizona Corporate Commission’s website at eCorp.
Filing online is recommended because it is speedy, uncomplicated, convenient and in some cases, instantaneous.
Moreover, the filing system will require you to complete all the fields available which ensures that you get It done properly.
In filing by snail mail or fax, note the following:
- Ensure that your filing has a cover sheet that includes all of your information.
- If you file by snail mail, ensure that all required documents and fees are included.
- Cash is not accepted if filing is done by snail mail.
- If you file by fax you must have a Money-on-Deposit (MOD) account for paying your filing fees. Submit your documents on 602-542-4100
What payment methods are acceptable when forming an AZ LLC?
The following modes of payments are the following:
- Cash – It may be used at the PHOENIX OFFICE only for in-person submittals. Bills over $20 is not accepted.
- Checks or money orders – must be payable “Arizona Corporation Commission.” All words needs to be spelled out and there should be no abbreviations. Everything must be filled out including the amount sections. The names and addresses of the account holder as well as the check number needs to be preprinted out or imprinted on the check.
- Credit Cards – Only Visa and Master Card are accepted and may only be used for in-person and online eCorp submissions.
How long does it take to form an LLC in Arizona?
It usually takes 3 weeks but if expedited it can be as short as 7 days and maximum of 10 business days. Check the schedule of fees for cost of filing the documents you will file initially and for the maintenance of your LLC.
In particular, there are several options in deciding the level of speed that your submissions can be reviewed. The following are your options found on Arizona’s website:
- Regular (no additional fee; the estimated processing time is typically 14-16 days)
- Expedite ($35 in addition to the filing fee; the estimated processing time is typically 3-5 days)
- Next day ($100 in addition to the filing fee; the filing will be reviewed by the C.O.B. on the following business day)
- Same day ($200 in addition to the filing fee; the filing will be reviewed by the C.O.B. on the same business day)
- 2 hour ($400 in addition to the filing fee; The filing will be reviewed within 2 hours of receipt).
What do I need to do for my LLC to be managed by someone else who is not a member?
If an LLC is to be managed by a non-member manager you have to check the “vested in managers” box, list the names and addresses of the managers, and list the addresses and names of the members that owns 20% or more of the LLC. Then check the box under the manager and member names. Check the “reserved to members” box and list the names and addresses of all members of the LLC now matter what the percentage they own if the decision is made by more than one member and there is no manager.
Who signs the documents if I want my LLC to be managed by a manager that is not a member?
It will be the managers who are tasked to manage the LLC will sign the documents in behalf of the LLC.
What is an operating agreement?
An operating agreement is an agreement between member who managed the LLC and the LLC. In case of manager managed LLC, it will be an agreement between managers, members and LLC.
It provisions shows how to manage the LLC provided it is not against the law. It maybe written or oral.
Do I need to submit the operating agreement to the Arizona Corporation Commission?
No. There is no need to submit your operating agreement.
How do I change the Articles of Incorporation to show the changes that I made?
Submit the Articles of Amendment to the Arizona Corporation Commission. You can submit it thru snail mail or personal filing but it is more convenient if you will file it online.
I am moving my LLC to another state. What documents do I need to submit?
You may submit a Statement of Domestication to the Arizona Corporation Commission.
I went bankrupt, how do I report it?
You don’t have to report bankruptcy to the Arizona Corporation Commission.
How do I request for a Certificate of Good Standing?
You may request online for a fee of $45 ($10 fee plus $35 expedite fee) or you may submit a paper request by mail or person at 1300 W. Washington St., Phoenix, AZ85007.
How can I convert my LLC to a Corporation?
Use the Statement of Conversion, it also shows the instruction on how to accomplish it.
What is a foreign LLC?
It is an LLC that was formed in another state, or country. Those created under federal or Indian tribal law are also considered foreign corporations.
Do I need to register foreign LLC with Arizona Corporation Commission?
If you will be doing business in Arizona, you have to register your foreign LLC.
Can registered foreign corporation or LLC start doing business in Arizona immediately?
No. You must first submit to the Arizona Corporation Commission an Application for Authority to Transact Business or Conduct Affairs. Check the instruction to the Application for Authority for instructions on what document to attach.
The foreign LLC must also submit a Foreign Registration Statement.
When will I need to amend my LLCs Foreign Registration Statement?
You may amend if the following is present:
- There is false information on the Registration Statement when it was made.
- There were changes in the arrangements or other information contained in the Registration Statement have changed which makes the application inaccurate.
How do I get copies of my LLC Documents?
You may complete a Records Request Form and submit it to the Corporation Division Records Section either by mail or in person at 1300 W. Washington St., Phoenix, AZ.
The same applies for request for old stock certificate.
The number of pages cannot be determined until the request is completed. For this reason, a check with an amount “not to exceed” a certain dollar amount is requested.
Upfront payment is requested because of instances where requestors refuse to pay for their copies once their request is completed.
How to I serve documents to another LLC through the Arizona Corporation Commission?
If you want to serve documents to an LLC through the Arizona Corporation Commission, you have to deliver the documents to the Corporations Division Section either by mail or in person the following documents:
- 2 copies of the document/s being served
- A $25 check
- A written statement, declaration or affidavit that certifies under penalty that upon the signer’s information, knowledge and belief the LLC failed to appoint or maintain a statutory agent or the statutory agent cannot be located at the address indicated in the LLCs documents.
The Arizona Corporation Commission will then mail a copy of the documents to the LLC thru regular mail and a Certificate of Mailing will be prepared.
The certificate and copies of the documents being sent will be sent for microfilming into the entity’s record.
You may obtain a uncertified or certified copy of Arizona Corporation Commission by paying the applicable fees.
How to I serve documents to another LLC through the Arizona Corporation Commission?
If you want to serve documents to an LLC through the Arizona Corporation Commission, you have to deliver the documents to the Corporations Division Section either by mail or in person the following documents:
- 2 copies of the document/s being served
- A $25 check
- A written statement, declaration or affidavit that certifies under penalty that upon the signer’s information, knowledge and belief the LLC failed to appoint or maintain a statutory agent or the statutory agent cannot be located at the address indicated in the LLCs documents.
The Arizona Corporation Commission will then mail a copy of the documents to the LLC thru regular mail and a Certificate of Mailing will be prepared.
The certificate and copies of the documents being sent will be sent for microfilming into the entity’s record.
You may obtain a uncertified or certified copy of Arizona Corporation Commission by paying the applicable fees.
What address do I use if my business is only on the internet?
The Principal Address of your LLC is the place where your business is located. The law allows you to have your principal business to be anywhere. However, the principal place of business can be viewed by the public. If you have an internet business, it is best to us a P.O. Box or the address of your Statutory Agent if allowed.
Where do I publish a document of incorporation in Arizona?
The Arizona Corporate Commission has a list of newspapers where you can publish your certification of incorporation.
My business was dissolved, what do I need to do?
If your business was administratively dissolved, you cannot be involved in any other activity except those related to dissolution.
You can still reinstate your business provided that you do so within 6 years from dissolution.
However, you still need to shell out $100,000 for reinstatement in addition to the filing fees for document submission.
If you went out of business, you need to initiate the dissolution by submitting the Articles of Termination. It will not happen automatically.
What is a single-member LLC?
This is an LLC that has only one member, the owner. It is similar to a sole proprietor but offers protection for your personal assets in case of lawsuits and creditors.
Does Arizona require registering a DBA?
No. You don’t need to register your DBA or trade name in Arizona. But unregistered trade name cannot be used on some official documents and it is illegal if someone else is using it.
You can protect you trade name by having it registered.
What taxes does LLCs pay in Arizona?
Once your LLC is formed it needs to file taxes. Often, LLCs do not file income taxes because the responsibility falls on the individual members.
But if the owner or owners chose to have the LLC treated as a corporation for tax purposes, the LLC must file a separate tax return which will subject it to corporate tax income.
If your LLC have employees, you need to pay employer taxes
If you are selling goods to your customers, you will need to pay Arizona’s sales tax.
What is a statutory agent?
A statutory agent is an individual or business entity that a corporation or LLC appoints for the purpose of accepting service of process (lawsuit papers or legal documents).
My Statutory Agent changed address, what do I do?
When LLCs Statutory Agent changes address, file a Statement of Change form indicating the changes that happened.
Is name reservation required?
No. Name reservation is advised so that in the course of preparing your formation paperwork no one will be able to claim the name you chose.
Why is name reservation different from name registration?
Everybody can obtain a name reservation. It is temporary, non-renewable and can only be held for 120 days before it can be reserved by another.
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: