How to Start an LLC in Arizona

Forming an LLC in Arizona is one of the more straightforward business filings in the country. There's no annual report requirement for LLCs, no franchise tax, and the base filing fee is only $50. This guide walks through exactly what you need and the order to do it in, with the current fees and timelines from the Arizona Corporation Commission (ACC) and the Arizona Department of Revenue.

What You'll Need Before You Start

• A proposed LLC name that meets Arizona's naming rules
• A statutory agent with a physical Arizona address
• A principal business address for the LLC
• Names and addresses of the LLC's members or managers
• $50 for the standard Articles of Organization filing fee (add $35 for expedited review, or $100 to $400 for accelerated same day, next day, or two hour service)
• An account on the Arizona Business Center (ABC) portal if you plan to file online
• An EIN application ready to submit to the IRS once your LLC is approved

Step 1: Choose a Name for Your Arizona LLC

Under A.R.S. 29-3112, your Arizona LLC name must include "limited liability company," "limited company," or an abbreviation like LLC, L.L.C., LC, or L.C. It cannot contain words that suggest it's a corporation, such as "incorporated" or "association." If you're forming a professional LLC (for licensed professionals like accountants or architects), the name needs "professional limited liability company" or PLLC, PLC, or similar instead.

The name also has to be distinguishable from every other entity name, reserved name, and registered trade name already on file. Check availability using the ACC's business name search tool before you get attached to anything. If your name includes words like "bank," "trust," or "credit union," you'll need prior written approval from the Arizona Department of Financial Institutions, which adds time, so plan around it if that applies to you.

Tip: If you're not ready to file yet but want to lock in a name, you can reserve it for $10 through the ABC portal. The reservation holds the name for 120 days.

Step 2: Appoint a Statutory Agent

Arizona calls what most states call a "registered agent" a statutory agent (A.R.S. 29-3115). This is the person or company that accepts legal notices and official mail on behalf of your LLC. An individual statutory agent must be a permanent, full time Arizona resident with a physical street address in the state (a P.O. box alone won't work, though a mailing address must also be in Arizona). You can also use a business entity as your statutory agent, including an authorized foreign LLC or corporation, but your own LLC cannot serve as its own agent.

Whoever you name has to sign a Statutory Agent Acceptance (Form M002) confirming they agree to the role. If you ever change agents or move your principal address, that's a $5 filing with the ACC. Skipping this upkeep is a real risk: if the Commission can't reach a valid statutory agent, your LLC can be administratively dissolved under A.R.S. 29-3708.

Step 3: File Your Articles of Organization

This is the actual formation document, Form L010, filed with the Arizona Corporation Commission, Corporations Division. You can file online through the Arizona Business Center or by mail. The standard filing fee is $50.

Processing takes about 9 to 11 business days for regular filings. If you need it faster, expedited review adds $35 (bringing the total to $85) and cuts processing to roughly 2 to 4 business days. For genuinely urgent timelines, the ACC also offers accelerated tiers on top of the base fee: $100 for next day service (received by 5pm), $200 for same day (received by 10am), and $400 for two hour service (available 8am to 3pm). Keep in mind these guarantee that your filing will be examined within that window, not that it will be approved on the spot; if the examiner flags an issue, you'll still need to fix and resubmit it.

Publication Requirement (Depends on County)

Arizona law requires a new LLC to publish notice of formation in a newspaper of general circulation in the county of its statutory agent's street address for three consecutive publications within sixty days after the Commission files the articles. The exception is an LLC whose statutory agent's street address is in Maricopa or Pima County, where the Commission handles the public notice itself. Because publication costs vary by county and by newspaper, and requirements can be updated, confirm the current rule and any applicable cost directly with the Arizona Corporation Commission before you file, rather than assuming it does or doesn't apply to you.

Step 4: Prepare an Operating Agreement

Arizona doesn't require you to file an operating agreement with the state, but you should still write one. This internal document spells out ownership percentages, how profits and losses are split, voting rights, and what happens if a member wants to leave or the LLC needs to dissolve. Without one, Arizona's default LLC statute controls those decisions, which may not match what you and your co-owners actually intended.

Even single-member LLCs benefit from having one. Banks sometimes ask for it to open a business account, and it reinforces the separation between you and the business, which matters if your LLC's liability protection is ever challenged in court.

Step 5: Get an EIN from the IRS

An Employer Identification Number (EIN) is free and comes directly from the IRS, either online or by mail. You'll need it to open a business bank account, hire employees, and file federal taxes. Even single-member LLCs with no employees typically want one, since using your Social Security number for business banking mixes your personal and business identities in a way that undercuts the liability protection an LLC is supposed to provide.

Step 6: Handle Arizona Tax Registrations

Arizona LLCs are pass-through entities by default, meaning the LLC itself doesn't pay a separate state income tax. Profits pass through to the members, who report them on personal returns and pay Arizona's flat 2.5% individual income tax. If your LLC elects to be taxed as a corporation instead, it owes Arizona's corporate income tax of 4.9% of net income or $50, whichever is greater, under A.R.S. 43-1111.

If you'll be selling taxable goods or services, you need a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue, at $12 per business location. Despite the name, TPT works much like a sales tax, but it is a tax on the seller's business activity, and sellers usually pass it on to customers. You can register through the Department of Revenue's TPT license page. The state's combined base sales tax rate is 5.6%, and cities and counties layer additional rates on top, so your effective rate depends on where you're located.

Step 7: Obtain Necessary Licenses and Permits

Arizona has no single, general statewide business license that every company needs. What you actually need depends on what you do and where. Most cities and towns require their own local business or TPT license in addition to the state TPT license, so check with your city clerk's office. Regulated professions, such as contractors, cosmetologists, or healthcare providers, have their own licensing boards with separate application processes and fees.

Costs at a Glance

Item	Cost
Articles of Organization (standard)	$50
Articles of Organization (expedited)	$85 total
Next day accelerated service (add-on)	$100
Same day accelerated service (add-on)	$200
Two hour accelerated service (add-on)	$400
Name reservation (120 days)	$10
Change of statutory agent or address	$5
Annual report	Not required for LLCs
TPT license (per location)	$12

Common Mistakes to Avoid

• Picking a name before checking availability. Ordering business cards or building a website around a name that gets rejected wastes time and money. Search the ACC database first.
• Using a home address as the statutory agent address when you want privacy. The statutory agent's address becomes part of the public record. If privacy matters to you, consider a commercial registered agent service instead.
• Assuming no annual report also means no ongoing obligations. Arizona LLCs skip the annual report, but you're still on the hook for keeping your statutory agent current, filing TPT returns if applicable, and paying state and federal income taxes on schedule.
• Skipping the operating agreement because it's not legally required. This is the document that resolves disputes between members before they become expensive. Don't skip it just because the state doesn't ask for it.
• Ignoring the publication requirement outside Maricopa and Pima counties. If it applies to your county, missing the window can create compliance headaches down the line. Confirm the current requirement with the ACC.

What to Expect After Filing

Once the Corporation Commission approves your Articles of Organization, your LLC generally becomes a legally recognized entity in Arizona, and you should be able to move forward with getting an EIN, opening a business bank account, and registering for any tax licenses your business activity requires. Approval typically shows up as an approved filing notice through the ABC portal, and your LLC's status should then be searchable in the Commission's public database. Actual processing times can vary based on filing volume, so treat the 9 to 11 business day window as a general expectation rather than a guarantee.

Disclaimer

This article is for general informational purposes only and does not constitute legal or tax advice. Arizona filing fees, processing times, and requirements can change, and specific situations, such as professional licensing, multi-member ownership disputes, or complex tax elections, often call for guidance tailored to your circumstances. Consult a licensed Arizona attorney or a CPA before making formation or tax decisions for your business, and verify current fees and requirements directly with the Arizona Corporation Commission and the Arizona Department of Revenue before filing.