LLC Cost in Arizona – How Much to Pay for an LLC


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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.

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.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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. 

Business Taxes

Like every other business entity, Arizona LLCs are also subject to State tax and filing obligations. 

Income Tax

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

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. 

Self-Employment Tax

The Arizona Federal Self-employment tax is 15.3%.

Withholding Tax

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.

Property Tax

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:

StatesArizonaCaliforniaNevadaUtahNew Mexico
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
Sales Tax4.9%7.75-9.5%4.6-8.25%5%15.3%

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.

Other Costs

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.

You can form an LLC in Arizona with just a few steps. You will need a name. If you want your name to be exclusive for 120 days, you can pay $10 to register a name. It can also help you prevent problems with the name by giving you peace of mind. This fee is not necessary if you already have a business name. You can also use another name for your business if you wish.

There are several fees associated with operating an LLC in Arizona. Some of these are recurring, so it is important to plan accordingly. However, most of the fees are one-time costs and you will never experience any surprise costs. The most important thing to remember is to keep the information on your LLC up to date. Depending on your industry, you might have to pay additional taxes on a yearly basis. If you hire employees, you will need to pay unemployment insurance tax, which will affect the cost. Additionally, you will need to pay sales taxes and self-employment taxes.

One thing you will need to do to stay compliant is hire a registered agent. A professional Arizona registered agent service costs $50 to $200 per year. Using a registered agent saves you time by dealing with the paperwork and service of process. Remember that failing to update the statutory agent information can lead to administrative dissolution of your LLC. You can also reserve your business name through the Arizona Corporation Commission.

The first step in forming an LLC is to choose a business name. There are many business names that you can choose from, so you need to choose one that fits your company best. There are several ways to do this. The Arizona Corporation Commission’s website has an extensive list of licensing requirements. You can also check your hometown’s licensing requirements. If you decide to use a website, this will cost you between $100 and $1000.

When deciding on a name for your Arizona LLC, consider the size of your business and whether you plan to involve investors in your business. An LLC is an excellent choice if you are a small or mid-sized business with no investors. If you plan to bring on investors, it is best to form a corporation and understand its tax implications. For a minimum fee, a standard filing fee in Arizona is $60.

Once your business has registered, you must pay various fees and expenses to the state. As an Arizona business owner, you need to know how much it will cost to form an LLC and hire employees. The state does not charge annual fees for LLCs, but there may be additional costs for a permit or license. However, these expenses can add up over time. A small business owner must carefully examine the costs before beginning operations.

The most important document in forming an LLC in Arizona is the Articles of Organization. These documents officially register your LLC and lock down your business name. Filing an Articles of Organization in Arizona costs $50 for a paper filing and $85 for an online filing. This fee is a one-time fee. Arizona LLCs must also pay business taxes. However, the fees are not excessive as long as you follow Arizona law.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

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.

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