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.
Creating an LLC in Arizona can be intimidating. Fortunately, there are plenty of options to make the process as simple and convenient as possible. However, many people don’t know that there are additional costs that can be associated with forming an LLC. Some of these costs apply to all LLCs in the state, while others only apply to specific types of businesses. For example, if you operate a business in a regulated industry, you may need to pay additional fees.
Some of the costs associated with forming an LLC in Arizona are one time fees, while others may be ongoing. For example, there is a filing fee for Articles of Organization. This is a document that officially registers an LLC. If you want to start an LLC in Arizona, you will need to file the documents with the Arizona Corporation Commission. You can file these documents online or by mail. If you file by mail, you will pay a $50 fee. If you file online, you will pay an $85 fee. Depending on the county in which you are based, you may also need to pay additional fees.
Creating an LLC in Arizona will also require you to pay self-employment and payroll taxes. If you have employees, you will also have to pay unemployment insurance taxes. Additionally, you will need to pay taxes on any earnings made by the LLC, including taxes on your earnings. You will also have to pay state and federal taxes. If you don’t pay these taxes in full on time, you will receive a late penalty.
Another fee that you may need to pay is an annual report. Almost every state requires an annual report to verify that your business is operating properly. If you do not maintain this information, the state will administratively dissolve your LLC. Having a professional registered agent is a great way to avoid this fee. You can hire a registered agent for between $199 and $400 per year. However, you may want to research reviews before hiring a statutory agent. Having a professional registered agent will ensure that your LLC is operating correctly.
In addition to the annual report, you may also need to pay fees for licensing. Each type of business will have different license requirements. The fees may vary by county or by the type of business. You may also need to pay license renewals on an ongoing basis. Depending on your type of business, you may be required to pay ad hoc license and permit fees.
The most important part of forming an LLC in Arizona is filing the Articles of Organization. This document is filed with the Arizona Corporation Commission, which holds your business name for 120 days. If you file the Articles of Organization online, you will have an expedited processing time. Typically, you will have an approval time of nine business days. If you have a unique name, you will need to pay a $10 filing fee.
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.