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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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

How Much Does It Cost to Maintain an LLC? The costs can vary from state to state, but most states require some type of filing fee to keep your company up-to-date. In Arizona, you will need to file an annual report, pay your taxes, and keep your statutory agent and principal office address current. To do so, you can pay a one-time fee of $5. Other fees and taxes are due on a yearly basis, so you should plan to budget for them.

To form an LLC in Arizona, you must file Articles of Organization. These documents will register your business and lock in its name. The filing fee is $50 for a hardcopy filing and $85 for online filing. These fees are a one-time fee and can be waived for a year if you choose to pay online. Other fees, such as licenses and annual maintenance fees, may apply for certain types of businesses.

Keeping your LLC up-to-date is essential. In most states, LLCs must file annual reports. These fees can range from $10 to hundreds of dollars. In Arizona, there are no filing fees. In addition to annual filing fees, LLCs must pay payroll taxes and self-employment taxes as well as federal, state, and local sales taxes. You’ll also need to pay your company’s statutory agent and registered business address. Regardless of the type of business, it is important to know how much it costs to maintain an LLC.

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.

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