How Much Does an LLC Cost in Arizona
From the standard $50 filing fee to a range of other expenses, read on to ensure you're financially prepared before creating an LLC in Arizona.
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Here are the following costs to consider:
- Domestic LLC Formation: $50
- Foreign LLC Formation: $150
- Publication Fee: $30 to $300
- Transaction Privilege Tax License: $12
- Business Permits and Licenses: $0 to $500+
- Business Taxes: 2.5% to 11.2%
- Statutory Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: $0 to $3,000+
Despite common misconceptions, the total cost of forming an LLC in Arizona goes beyond just the $50 LLC formation filing fee.
There are other expenses to consider before starting an LLC in Arizona. Mandatory expenses include the publication fee and the transaction privilege tax license.
Plus, there's a long list of optional fees that could increase your total expenses to more than $3,000. This comprehensive checklist of Arizona LLC fees will help you prepare a more accurate budget.
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No. All LLCs must pay the $50 one-time filing fee to the Arizona Corporation Commission (ACC).
Arizona Domestic LLC Formation Filing Fee
Cost: $50[1]
To form an LLC in Arizona, you must submit the Articles of Organization to the Arizona Corporation Commission (ACC). Once the documents are approved, your LLC will be recognized as legally separate from you.
The Articles of Organization contain important information for the state to uniquely identify your company. This includes the following details:
- LLC business name and address
- Business purpose/description
- Statutory agent's name and address
- Management structure (member- or manager-managed)
- Names of the LLC's members or managers
If you submit the Articles of Organization online, you will receive the decision letter in around 2 weeks. If you apply by mail, the processing time could take longer.[2]
If you want a quicker turnaround, you can pay for the following Same Day / Next Day Accelerated Processing Services fees:[3]
- $100 - Next-day service
- $200 - Same-day service
- $400 - Two-hour service
In Arizona, the LLC formation filing fee is non-refundable and non-transferable.[4]
If you make a mistake in your Articles of Organization, and you have already paid the filing fee, you will need to pay the fee again.
Arizona Foreign LLC Formation Filing Fee
Cost: $150[1]
If your LLC is already established in a different state and you want to expand your business to Arizona, you need to register it as a foreign LLC.
Foreign LLCs in Arizona must submit a Foreign Registration Statement to the Arizona Corporation Commission (ACC). The regular processing time is around two weeks. If you pay the $100 Next-day service fee,[1] the processing time can be cut down to 1 day.
No. Series LLCs are not legally recognized in Arizona. If your LLC in another state is a series LLC, you'll need to create a separate foreign LLC in Arizona. This involves filing a Foreign Registration Statement.
Arizona LLC Publication Fee
Cost: $30 - $300
Once your Arizona LLC application is approved, you must publish a Notice of LLC Formation for three consecutive publications. This must be done within 60 days of formation.[5] The publication fee varies between counties.
A Notice of LLC Formation serves as a public announcement of the formation of your LLC. This informs the community and potential stakeholders about the existence of your new business entity.
Only a local county newspaper that is approved by the Arizona Corporations Commission can publish a Notice of LLC Formation. The notice contains your LLC's name, the registered agent's name and address, and the name/s of member/s or manager/s among other details.
For LLCs based in Maricopa or Pima County:
The publication is free.[6] These two counties are the most populous in Arizona and have a large number of businesses. The ACC has not yet decided whether to expand the free online publication of Notices of LLC Formation to the rest of the state.
If you fail to publish a Notice of LLC Formation on time, your LLC can be dissolved. You have 60 days to do this after your LLC is formed.
Arizona Transaction Privilege Tax License
Cost: $12[7]
All LLCs that operate in Arizona are required to have a Transaction Privilege Tax (TPT) license.[7] Having a TPT license means you have the privilege to do business in the state.
You can get a TPT license from the Arizona Department of Revenue (ADOR). The TPT license is valid from January 1st to December 31st. You can renew it for free each year.
Arizona does not require LLCs to file an annual report. However, you must renew the Transaction Privilege Tax (TPT) on January 1st each year.
Arizona Business Permits and Licenses Fees
Cost: $0 - $500+
Aside from the Arizona Transaction Privilege Tax (TPT) license, your LLC may need to get local business permits. The local business permit fees vary per city and are renewable per year.
A business permit in Scottsdale costs $50 and is renewable annually for the same amount.[8] In Tucson, most permits costs $20.[9] If your LLC does business in two different cities, you need to get a separate license for each city.
The total cost of business permits and licenses in Arizona could skyrocket to $500 or more. For example, a Class 1 Liquor license costs $1,100 per year.[10] It's required for businesses that sell beer and wine for off-premises consumption.
Whether your LLC is selling a product or offering a service, check the Arizona Corporation Commission (ACC) for the business permits and licenses that your LLC needs.
All LLCs in Arizona can exist indefinitely until it is dissolved or terminated. An LLC can be dissolved by the Arizona Corporation Commission (ACC) if it does not have the required business permits and licenses.
Arizona Business Taxes
Cost: 2.5% - 11.2%
The base Transaction Privilege Tax (TPT) rate in Arizona is 5.6%. However, some cities and counties in Arizona impose additional TPT taxes. The total TPT rate can be as high as 11.2%.[7]
In addition to the Transaction Privilege Tax (TPT), there are several other taxes that LLCs in Arizona may be required to pay. For example, LLC members are subject to the state's 2.5% flat income tax rate per year.[11]
If your LLC has employees, you will be responsible for withholding and paying federal and state employment taxes on their behalf.
Optional Fees for LLCs in Arizona
While the Arizona LLC fees below are optional, you may need to pay for some of them depending on your business needs. For example, obtaining a Certificate of Good Standing is often necessary when opening a business bank account.
As you plan your budget for your new Arizona LLC, remember to account for these potential additional expenses:
| Arizona LLC Optional Fees | Cost |
|---|---|
| Arizona LLC Statutory Agent Fee | $0 - $300+ |
| Arizona LLC Operating Agreement Fee | $0 - $500+ |
| Arizona Employer Identification Number (EIN) | $0 - $99 |
| BOI Report | $0 - $149 |
| Arizona LLC Name Reservation Fee | $10 - $45 |
| Arizona LLC Doing Business As (DBA) Fee | $10 |
| Arizona LLC Articles of Correction Fee | $25 |
| Arizona LLC Articles of Amendment Fee | $25 |
| Arizona LLC Change of Registered Agent Fee | $5 |
| Arizona LLC Certified Document Copy Fee | $15 + $0.50 per page |
| Arizona LLC Certificate of Good Standing Fee | $10 |
| Arizona Business Website Domain Fee | $20 - $30 |
| Arizona Business Insurance Premiums | $ - $$$ |
Yes. Aside from annual business license renewal fees, your LLC might need to pay registered agent service fees, website domain fees, and business insurance premiums. The costs are discussed below.
Arizona LLC Statutory Agent Fee
Cost: $0 - $400
In Arizona, every LLC must appoint a statutory agent. Also called a registered agent, this person or entity is responsible for accepting official legal documents and notices for your LLC.
Although a legally separate entity, an LLC cannot act as a registered agent. A registered agent must be over the age of 18 and have a physical address (not a P.O. box) in Arizona.
To save money, either you or a relative can serve as the service of process agent for your LLC. However, the name and address of the person you select as your registered agent will be publicly accessible. This may lead to privacy concerns.
Yes. A statutory agent in Arizona must prove acceptance of the position by signing the Arizona Statutory Agent Acceptance Form.
Arizona LLC Operating Agreement Fee
Cost: $0, or up to $500+
LLCs in Arizona are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Arizona. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Arizona Employer Identification Number (EIN)
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Arizona don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
BOI Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.
[12]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Arizona LLC Name Reservation Fee
Cost:[13] $10 Regular Processing (Via Mail or In Person) | $45 Expedited Processing (Online)
Naming your LLC in Arizona is free. It's included when you pay the Articles of Organization filing fee. But if you're not ready to submit your Articles of Organization, you can pay to reserve your LLC's name instead.
In Arizona, you can reserve a business name for 120 days. Unlike in other states, once a name reservation expires in Arizona, you can't renew the same business name. Other people will then be allowed to use that name for their business.
Don't forget to review Arizona's detailed list of naming regulations to prevent your Articles of Organization from getting rejected.
Check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL to prevent others from acquiring it.
Arizona LLC Doing Business As (DBA) Fee
Cost: $10[14]
A Doing Business As (DBA) name allows your LLC to operate under a name different from its legal name registered with the state. Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name that doesn't have an "LLC" at the end.
In Arizona, DBA applications are filed online. DBA applications sent via mail will be sent back. It usually takes two to three weeks for DBAs to be approved.[15]
DBAs in Arizona are valid for five years. It needs to be renewed for $10 before the expiration date. Failure to renew means other people can apply to use that name for their business.
Arizona LLC Articles of Correction Fee
Cost: $25[1]
After your Arizona LLC application is approved, your next focus should be on maintaining its good standing over the long term.
Get a copy of the approved Articles of Organization and review all the details carefully. If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing a Certificate of Correction.
Arizona LLC Articles of Amendment Fee
Cost: $25[1]
Your Arizona LLC's Articles of Organization contain specific details about your business. Should these details change, you must submit a Certificate of Amendment to the Arizona Corporation Commission (ACC).
File Articles of Amendment if you:
- Add, remove, or change an LLC member or manager
- Update your LLC's business address
- Modify your LLC's stated business activities
A Certificate of Correction is for fixing mistakes in initial filings. Meanwhile, a Certificate of Amendment is for updating or changing key details as the LLC evolves.
Arizona LLC Change of Registered Agent Fee
Cost: $5[1]
An LLC can change its statutory agent's details anytime. If this happens, you must submit a statement of change to the Arizona Corporation Commission (ACC) as soon as possible. Changes include the statutory agent's name and address.
Don't forget to get a signed statutory agent acceptance form from your new agent. Failure to submit a statement of change along with the acceptance form may cause time-sensitive legal documents to be sent to the wrong address.
In Arizona, the articles of amendment are used to change the business name, business purpose, and other details. The statement of change is focused solely on changes regarding the statutory agent.
Arizona LLC Certified Document Copy Fee
Cost: $15 + $0.50 per page[1]
Certified copies of your LLC's business documents can be requested by mail or by visiting the Arizona Corporation Commission with a Records Request Form.
You might need a certified copy of a business document, like your Articles of Organization, for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and Articles of Amendment (if any) for recordkeeping purposes.
Arizona LLC Certificate of Good Standing Fee
Cost: $10[1]
A Certificate of Good Standing verifies that your business is properly registered and legally authorized to conduct business with the state. The certificate is often necessary to:
- Open a bank account
- Conduct business outside of Arizona
- Qualify for business insurance
- Apply for business loans
It can take two weeks or longer to get a Certificate of Good Standing. Paying the $35 expedited processing fee shortens the waiting time to 3-5 business days for online requests and 1 business day for in-person requests.[16]
Arizona Business Website Domain Fee
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Arizona Business Insurance Premiums
Cost: $ - $$$
All LLCs in Arizona with at least one employee are required to get workers' compensation insurance. This applies regardless of whether the employees are full-time, part-time, temporary, or seasonal.[17]
Arizona has a state fund for workers' compensation insurance called the State Compensation Fund (SCF). The state fund's competitive rates are often lower than private insurance companies. However, it's not mandatory to get your LLC's compensation insurance from SCF.
Failure to obtain workers' compensation insurance can lead to hefty fines from the Arizona Industrial Commission, potential lawsuits from injured employees, and even business closure.
In Arizona, employees who get injured on the job are entitled to benefits regardless of who was at fault.[17]
Bottom Line
In summary, the Articles of Organization filing fee in Arizona costs $50 for domestic LLCs and $150 for foreign LLCs. Annual reports are not required in Arizona. However, you must renew the Transaction Privilege Tax (TPT) licenses and other business permits annually.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
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The total cost of creating and maintaining an LLC in Arizona will increase depending on what additional services, documents, and licenses your LLC needs to operate. Ultimately, it's never a bad idea to set aside an extra budget for unexpected costs.
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References
- ^ Arizona Corporation Commission. Fee and Payment Information, Retrieved 10/14/2024
- ^ Arizona Corporation Commission. Document Processing Times, Retrieved 10/14/2024
- ^ Arizona Corporation Commission. Same Day/Next Day Services, Retrieved 10/14/2024
- ^ Arizona Corporation Commission. FAQ: Are fees refundable?, Retrieved 10/14/2024
- ^ Arizona State Legislature. ARS 29-3201, Retrieved 10/14/2024
- ^ Arizona Corporation Commission. L010I Instructions - Articles of Organization, Retrieved 10/14/2024
- ^ Arizona Department of Revenue. Transaction Privilege Tax, Retrieved 10/14/2024
- ^ City of Scottsdale. Licenses, Retrieved 10/14/2024
- ^ City of Tucson. Business License and Tax Information, Retrieved 10/14/2024
- ^ Arizona Department of Liquor Licenses and Control. Liquor License, Retrieved 10/14/2024
- ^ Arizona Department of Revenue. Individual Income Tax Forms, Retrieved 02/10/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Arizona Corporation Commission. Name Reservations, Retrieved 01/22/2024
- ^ Arizona Secretary of State. Online Trade Name/Trademark Program, Retrieved 02/10/2024
- ^ Arizona Secretary of State. Trade Names and Trademarks, Retrieved 02/10/2024
- ^ Arizona Corporation Commission. Record Requests - FAQs, Retrieved 10/14/2024
- ^ Industrial Commission of Arizona. Claims FAQs - Workers' Compensation, Retrieved 10/14/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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