How to Start an Arizona LLC: $50 Filing Guide

Arizona is one of the cheapest and simplest states to form an LLC. The filing fee is only $50, there is no annual report, and the state charges no franchise tax. As a result, Arizona consistently ranks among the most business-friendly states in the country for new entrepreneurs.

To start an LLC in Arizona, you file Articles of Organization (Form L010) with the Arizona Corporation Commission (ACC). If you file online, your LLC is typically approved within 12–15 business days at the standard rate — or within a week if you pay the $35 expedited fee. In addition, Arizona uses the term "statutory agent" instead of "registered agent," although both mean the same thing.

However, there's one requirement that catches many new business owners off guard: Arizona is one of only three states that requires LLCs to publish a formation notice in a local newspaper. The good news is that LLCs with a statutory agent in Maricopa or Pima County are completely exempt from this rule.

In this guide, we break down every step you need to follow to form an LLC in Arizona, including the publication process, tax obligations, and ongoing compliance. All fees and deadlines are verified with the Arizona Corporation Commission (ACC) and the Arizona Department of Revenue for 2026.

Arizona LLC at a Glance

Why Arizona Stands Out for LLCs

Pick a Name for Your Arizona LLC

Choosing a name is the first step to form an LLC in Arizona. Your name needs to comply with the Arizona Corporation Commission's naming rules and be distinguishable from every other entity currently registered in the state.

Arizona LLC Naming Rules

Your name must include "Limited Liability Company" or an abbreviation such as "LLC" or "L.L.C." In addition, it cannot include words like "bank," "trust," or "insurance" without approval from the corresponding regulatory agency. Furthermore, the name must be clearly distinguishable from all other business entities on file with the ACC — similar names with minor spelling differences may be rejected.

How to Check Availability

Before waiting 12–15 business days for ACC approval, run a quick pre-check with our free LLC name availability checker to screen your top options first. Then confirm in the official ACC Entity Search tool. Specifically, enter just the distinctive part of your name (without "LLC") to get broader results. If the name is already taken, try adding a geographic modifier or descriptive word to differentiate it. If you're still comparing Arizona against other states, our Secretary of State business search tool lets you check entity availability across multiple states at once — useful if you're weighing Nevada or New Mexico as alternatives.

Optional Name Reservation

If you're not ready to file right away, you can reserve your LLC name for 120 days by paying a $10 fee. You can submit the reservation online through the ACC Arizona Business Center portal, by mail, or in person. However, this step is entirely optional — you can skip it and go straight to filing your Articles of Organization.

Designate a Statutory Agent

Every Arizona LLC must have a statutory agent — this is Arizona's official term for what most states call a "registered agent." The statutory agent receives legal documents, lawsuits, and state correspondence on behalf of your LLC. As a result, maintaining an active statutory agent is a legal requirement for as long as your LLC exists. See our best registered agent services comparison to find the right provider for your Arizona LLC before you file.

Statutory Agent Requirements

Why Your Agent's Location Matters

In Arizona, choosing a statutory agent with an address in Maricopa County (Phoenix metro) or Pima County (Tucson area) automatically exempts your LLC from the newspaper publication requirement. Consequently, many out-of-state LLC owners use a professional service based in Maricopa County specifically to avoid this extra step and cost.

File Your Articles of Organization

The Articles of Organization (Form L010) is the legal document that officially creates your Arizona LLC. Specifically, you file it with the Arizona Corporation Commission (ACC), and once approved, your business becomes a recognized legal entity in the state.

What You Need to Include

In order to complete your filing successfully, you'll need to provide the following information on Form L010:

Filing Options and Processing Times

Arizona offers several ways to file your Articles of Organization. Both online and mail filings cost the same base fee, but they differ significantly in processing speed. Moreover, the ACC provides multiple expedited tiers for those who need faster approval.

For most people, the $85 expedited online filing offers the best balance between speed and cost. However, if you're not in a rush, the standard $50 option works perfectly fine. Keep in mind that expedited same-day and next-day processing are not available for mail filings — only online, walk-in, or fax submissions.

Meet the Publication Requirement

Arizona is one of only three states (along with Nebraska and New York) that requires new LLCs to publish a formation notice in a local newspaper. This step must be completed within 60 days of your LLC being approved by the ACC. However, there's a major exemption that applies to most Arizona LLC owners.

Who Is Exempt from Publication?

How to Publish (If Required)

If your statutory agent is located outside Maricopa or Pima County, you'll need to follow these steps within 60 days of your LLC approval:

The total cost for publication typically ranges from $60 to $120, depending on the newspaper and county. Consequently, if you want to avoid this step altogether, the simplest solution is to use a statutory agent service with an address in Maricopa or Pima County.

Draft an Operating Agreement

Arizona law does not require LLCs to have an Operating Agreement. Nevertheless, creating one is strongly recommended because it defines the internal rules of your business — including ownership, profit distribution, voting rights, and what happens if a member leaves.

What to Include

A solid Operating Agreement should cover ownership percentages and capital contributions from each member, how profits and losses are distributed, the management structure (member-managed vs. manager-managed), voting procedures for major business decisions, rules for adding or removing members, and a dissolution plan in case the LLC needs to close. Without this document, your LLC defaults to Arizona's statutory rules under A.R.S. Title 29, Chapter 7 — which may not reflect how you actually want your business to operate.

Your Operating Agreement is an internal document. As a result, you do not need to file it with the Arizona Corporation Commission — simply store it safely with your other business records.

Apply for an EIN

An EIN (Employer Identification Number) is a nine-digit tax ID issued by the IRS for your business. You need one to open a business bank account, hire employees, and file federal tax returns. Essentially, it works like a Social Security Number for your Arizona LLC. For a detailed walkthrough, check our complete guide on how to get an EIN.

Apply for your EIN only after the Arizona Corporation Commission approves your Articles of Organization. Since standard processing takes 12–15 business days, you'll need to wait for approval before applying — unlike states with instant online filing.

Open a Business Bank Account

After receiving your LLC approval and EIN, the next step is to open a business bank account. Keeping your personal and business finances separate isn't just good practice — it's essential for maintaining your limited liability protection in Arizona.

Documents You'll Need

Most Arizona banks require your approved Articles of Organization (stamped or certified by the ACC), your EIN confirmation letter from the IRS, your Operating Agreement, and a valid government-issued photo ID. Some banks may also ask for your Arizona Business License if applicable to your industry.

Get Licenses and Permits

Unlike Alaska, Arizona does not require a general state-level business license for all businesses. Instead, licensing requirements depend on your industry, location, and the type of services you provide.

Transaction Privilege Tax (TPT) License

If your Arizona LLC sells taxable goods or services, you must register for a Transaction Privilege Tax (TPT) license with the Arizona Department of Revenue. This is Arizona's version of a sales tax — but with an important difference: in Arizona, the tax is technically imposed on the seller for the privilege of doing business, not directly on the buyer. Despite this legal distinction, most businesses pass the TPT cost to customers. You can register online through AZTaxes.gov.

Local and Industry-Specific Licenses

Depending on where and how you operate, you may need additional permits. Specifically, cities and municipalities may require their own business licenses, contractors need licenses from the Arizona Registrar of Contractors, and certain professions (healthcare, law, accounting, real estate) require state-level professional licenses. In addition, food establishments, liquor vendors, and childcare facilities have their own regulatory requirements.

Arizona LLC Taxes Explained

Arizona offers a competitive tax environment for LLCs. The state has a flat 2.5% income tax — the lowest flat rate among states that levy an income tax — and provides optional tax elections that can further reduce your burden. Here's what you need to know about Arizona LLC taxes in 2026.

Pass-Through Taxation (Default)

By default, Arizona LLCs are pass-through entities. This means the LLC doesn't pay state income tax at the entity level. Instead, profits flow through to each member's personal tax return, where they are taxed at the 2.5% flat Arizona rate plus federal income tax. In addition, LLC members owe federal self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare) on net business earnings. For a full breakdown of how to minimize your federal and state tax burden as an Arizona LLC owner, read our guide on LLC tax benefits.

Small Business Income (SBI) Tax Election

Arizona offers a unique option called the Small Business Income (SBI) tax election. This allows qualifying LLC members to separate their business income from other income and tax it at the flat 2.5% SBI rate. Essentially, this election can simplify your state filing and protect your business income from being pushed into a different tax bracket. You make this election annually when filing your Arizona tax return (Form 140-SBI).

If you're still working out your first-year budget — factoring in TPT registration, the SBI election, and potential publication costs — our startup cost estimator gives you a complete picture in under 2 minutes.

Pass-Through Entity (PTE) Tax Election

Arizona also offers an optional PTE tax election that allows your LLC to pay state income tax at the entity level at the 2.5% rate. The main benefit is that it helps LLC members work around the $10,000 federal SALT deduction cap. Specifically, since the tax is paid by the entity rather than the individual, it's fully deductible at the federal level — effectively bypassing the SALT limitation. Consult a tax professional to determine if this election benefits your situation.

Corporate Income Tax

If your LLC elects C corporation status, it becomes subject to Arizona's 4.9% flat corporate income tax. On the other hand, LLCs that elect S corporation status remain pass-through entities for state purposes. Many Arizona LLC owners choose the S-corp election to reduce self-employment taxes, since only "reasonable salary" is subject to the 15.3% rate — not the entire profit. Use our LLC vs S-Corp tax calculator to model whether the election saves you money at your Arizona income level. Not sure which structure fits your business yet? Take our business structure quiz before deciding — it takes under 2 minutes.

Transaction Privilege Tax (TPT)

Arizona uses a Transaction Privilege Tax (TPT) instead of a traditional sales tax. The state rate is 5.6%, but local counties and municipalities add their own surcharges, bringing the combined rate to approximately 7.5%–10% depending on location. If your LLC sells taxable goods or services, you must register, collect, and remit TPT through AZTaxes.gov. Before you register, use our LLC startup cost estimator to factor Arizona's TPT rates into your first-year budget.

Full Cost Breakdown

Arizona is one of the most affordable states to form and maintain an LLC. Here's a detailed breakdown of every cost you should expect — from formation day through your first year of operations. Use our LLC cost calculator to model your multi-year projection, or compare Arizona against other states in our guide on how much an LLC costs — the difference vs California ($800/year franchise tax) or Nevada ($425 filing + $150 annual) is significant.

Ongoing Annual Costs

Arizona's ongoing costs are among the lowest in the U.S. because there is no annual report and no franchise tax. In comparison, California charges $800/year just for its LLC franchise tax, while New York requires both annual filings and a costly publication process. Consequently, Arizona offers exceptional long-term value for LLC owners.

Your actual first-year total depends on two variables unique to Arizona: whether your statutory agent is in Maricopa or Pima County (saves $60–$120 in publication costs) and which processing speed you choose. Use our LLC cost calculator to get your exact number based on both factors.

Ongoing Compliance

Maintaining an Arizona LLC in good standing is remarkably simple compared to most states. There are no annual reports and no franchise taxes. However, there are still a few compliance items you need to stay on top of to avoid problems. Use our free LLC annual report tracker to manage your TPT filing schedule and statutory agent renewal dates — even without an annual report, missing either can put your LLC out of good standing.

Keep Your Statutory Agent Current

If your statutory agent changes — whether it's a different person, company, or address — you must file a Statement of Change of Statutory Agent with the Arizona Corporation Commission. Failing to maintain a valid statutory agent can result in your LLC losing its good standing status.

Transaction Privilege Tax Filings

If your LLC is registered for TPT, you must file returns on a monthly, quarterly, or annual basis depending on your sales volume. The Arizona Department of Revenue determines your filing frequency based on your estimated tax liability. Even if you had no sales during a period, you may still need to file a "zero return" to remain compliant.

BOI Report Exemption

As of March 21, 2025, domestic LLCs formed in any U.S. state are exempt from the Beneficial Ownership Information (BOI) reporting requirement with FinCEN. This means your Arizona LLC does not need to file a BOI report. However, LLCs formed in foreign countries that are registered to do business in the U.S. are still required to file.

Formation Timeline

Here's a realistic timeline for forming an LLC in Arizona based on the standard $50 filing option. If you choose expedited processing, you can cut the approval time significantly.