Perhaps you are hoping to form an Arizona LLC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Arizona.
On this page, you’ll learn about the following:
Arizona LLC Cost of Filing
Here are the costs involved in forming an LLC in Arizona.
Cost of Filing Formation Certificates
The Arizona Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Arizona Secretary of State.
Arizona Domestic LLC
- Online Filing costs $50.
- Expedited Processing Fee costs $85.
- By mail: Fill out the application form, and send it to the Arizona Corporate Commission, Examination Section 1300 W, Washington Street, Phoenix, Arizona 85007.
Arizona Foreign LLC
- Registration filing costs $150.
- Expedited Processing Fee costs $185.
- By mail: Fill out the application form, and send it out to the Arizona Corporate Commission, Examination Section 1300 W, Washington Street, Phoenix, Arizona 85007.
Visit the Official Arizona Government website to check the Official Fee Schedule of Limited Liability Companies (LLCs) in Arizona.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Arizona LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Arizona, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Arizona Department of Revenue for regulatory boards or agencies requiring licensing.
Like every other business entity, Arizona LLCs are also subject to State tax and filing obligations.
The Arizona State Corporate Income Tax varies between 2.5%- 4.54% (depending on the amount of income earned). Visit the official Arizona Revenue Department website to learn more about CIT.
Sales tax in Arizona is also known as Transaction Privilege Tax. Taxes vary depending upon the region. Businesses with an annual tax liability of $500 or more are required to file and pay electronically. Visit the Arizona Department of Revenue website to learn more about sales tax or transaction privilege tax.
The Arizona Federal Self-employment tax is 15.3%.
The State Employer Tax (withholding tax) is 2.9%. Visit the Secretary of State of Arizona Revenue website to get details about the tax payable.
Acquiring property for businesses in Arizona attracts a meager property tax at the rate of 0.62%. Visit the Secretary of State website to learn more about Arizona Property Tax.
Government Property Lease Excise Tax
The GPLET is paid on the basis of Size and Use of Property. The Secretary of State website provides detailed information about GPLET.
Liquor Luxury Tax
This tax depends on the type of Liquor. Visit the official Secretary of State website to understand Liquor Tax.
Tobacco Luxury Tax
The combined tax rate on cigarettes is $0.10. The Secretary of State website provides information about the Tobacco Luxury tax.
Comparison with the Neighboring States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Arizona, read the table below:
|Online filing fee||$50||$70||$425||$70||$50|
|LLC Annual fee||$0||$800 + $20||$350||$20||$0|
|Name reservation fee||$45 for online (including $35 for expedited processing)||$20||$25||$22||$20|
When it comes to establishing an LLC in Arizona, it would not cost you a hefty amount. LLCs are the most preferred set-ups for small businesses in Arizona given their flexible nature of the ownership and inexpensive setup and maintenance costs. It has a vibrant business climate and is one of the fastest-growing states in the United States.
- Arizona Name Reservation: $45 for online filings or $10 by mail
- Doing Business As (DBA): $10 for online filing or $31.20 if filing by mail
- Certified Document Copies: $15 + $0.50 per page.
- Certificate of Good Standing: $45
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Arizona LLC: $35
How Much Does It Cost to Maintain an LLC in Arizona
To maintain an LLC in Arizona you have to pay Sales tax of 4.9%, Income tax (2.5% to 4.54%), State employer tax of 2.9% and federal taxes.
If you’re wondering how much it costs to maintain an LLC in Arizona, you’re not alone. Many entrepreneurs face this same question. However, there are several ways to save money while still maintaining the proper structure of your business. While the process is straightforward, there are some costs involved. Read on to learn more about the costs of maintaining an LLC in Arizona. Once you’ve set up your business, you’ll need to maintain a bank account for your company. Keeping your business account separate from your personal account will protect your assets.
You’ll also need to pay taxes on your business’s profits. This will vary based on the type of business you run. If you plan to hire employees, you’ll need to pay the unemployment insurance tax. Other fees may be necessary if your business is regulated. Then, there are some other things that you need to do, such as filing annual reports with the Arizona Corporation Commission. You’ll also need to pay sales tax and self-employment taxes if you plan to conduct business in Arizona.
To form an LLC in Arizona, you’ll need to file articles of organization. These documents will allow your business to run as an LLC. The Arizona Corporation Commission charges a fee of $5 for unofficial copies and $15 for certified copies. In addition to filing for an LLC with the Arizona Corporation Commission, you’ll need to obtain the appropriate licenses. These licenses depend on the type of business you plan to operate and on the city or county where you’re located. You’ll also need to obtain a license if your business is specialized.
The Arizona Corporation Commission allows you to use a reserved business name if you’re planning to operate a business from the state. However, it’s important to update the statutory agent’s information regularly to avoid administrative dissolution. Arizona LLCs can be domestic or foreign. Regardless of their status, you’ll still have to file annual reports. If you fail to file them on time, your business will be subject to administrative dissolution if it doesn’t update the information regularly.
While filing for an LLC can be relatively inexpensive, it can get expensive quickly. You’ll need to open a business bank account and keep detailed records of all financial transactions. You’ll also need to keep track of contractors and employees. Depending on the type of business you have, this service may cost $150 or more a year. However, it’s important to check the company’s terms and conditions before you make the payment.
You may be required to pay a name reservation fee to reserve your business name in Arizona. This fee is not necessary, but it’s a good idea to make sure your business name isn’t taken by someone else. The name reservation portal will help you check the availability of the name before filing the LLC documents. There is a $35 expedited filing fee for online filings. To avoid these fees, you can also opt for the services of an online business entity filing service such as Incfile.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Arizona is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.