It always feels nice to have your business up and running in any state. Before all this can happen, you need to go through the proper channels to have a legitimate business. It is why some people might be wondering, what does the LLC Arizona cost? And how do you register an LLC successfully?
The Arizona Corporation Commission has tried to give you all the information you need to form a limited liability company in Arizona. However, this guide is what you need to learn more about the costs of setting up your business. Let us dive into the guide for more details.
Filing Requirements & Overall Arizona LLC Costs
Arizona LLC Annual Report (none)
The Arizona Corporation Commission does not require you to file an annual report once you form an LLC in the state. However, you will have to file your taxes based on the Arizona Department of Revenue to keep the business in good standing.
LLC Annual Fees
There are no LLC annual fees in Arizona. You will, however, have to pay filing fees for forming the LLC.
The LLC formation fee for doing business in the state of Arizona is $50. This one includes filing your Articles of Organization online through the Arizona Corporation Commission.
Once the LLC formation has been approved, you need to publish an LLC Formation notice in an approved newspaper, depending on the county. It has to be done within 60 days after LLC formation approval. This should cost around $30 to $300.
Registered Agent Fee
A registered agent in Arizona is also referred to as a statutory agent. You can be your own agent or hire a company to handle this.
If you hire a company, we recommend ZenBusess who can provide excellent services with varying prices depending on the package you choose.
Application for Withdrawal (Foreign LLC)
The Arizona Corporation Commission also allows for foreign LLC formation. In this case, the cost for registering a foreign LLC is $150. Make sure to fill the Foreign Registration Statement form.
The business licenses and permits will come after the LLC formation has been approved. The cost will vary largely based on the type of business and area you will be operating in. Learn more about the local licensing before deciding where to set up your business.
Once you form an LLC, you are responsible for filing your taxes to keep the business in good standing.
The taxes will vary depending on the field of your business. Some of the taxes you will have to deal with include federal income tax, payroll tax, state taxes, transaction privilege tax, and so much more.
Other LLC Filing Costs
Below are some additional costs you may incur when forming an LLC in Arizona.
LLC Name Reservation Fee
To form an LLC, you need a business name. You can reserve it online for $45 or $10 through the mail. Keep in mind that the name can only be reserved for 120 days.
“Doing Business As” (DBA) Name
The Arizona Corporation Commission can allow you to file a Trade Name Application. This allows you to have another name in addition to the LLC legal business name. This one costs $10.
Business Domain Name & Website
This largely depends on where you will be hosting your domain. It can be as low as $8.88 per year for a domain name.
As for the website, you may have to pay a professional to design and build a good business website which can easily cost over $1000.
Articles of Organization Fee
The Articles of Organization filing fee is $50 through regular filing. It can go up to $85 for those who want expedited filing.
Hiring an attorney when forming an LLC in the state of Arizona is highly recommended. The attorney might charge an average of $500 to $2500 to help you form an LLC in Arizona, among other things.
There is also the $50 to $85 filing fee for setting up the LLC.
Tax ID Number (EIN)
The Employer Identification Number (EIN) is free. However, some companies can charge a fee to help you get one.
The Top 2 Arizona LLC Services
When you are looking to start an Arizona LLC, ZenBusiness will be a common choice for helping you achieve your dream.
The company offers one of the most affordable options when looking to form an LLC in the state of Arizona. It is even cheaper than some other well-known services such as LegalZoom.
The company also makes the process of forming an LLC faster and easy. You can be done with the notice of LLC formation in no time. Since it also offers statutory agent service, it will be a nice way of ensuring your business meets the legal requirements.
The company enjoys an impressive amount of online reviews that makes it quite appealing to those who want its services. It has over 6,000 positive reviews, which should make most people find its services among the best.
ZenBusiness also offers the option of handling your annual report filing or any other LLC maintenance activities. This is only available when you choose the Pro package. As a result, you should end up having no worries working with such a company.
IncFile is also a common choice for those who want to start an Arizona LLC. The company gives you all the details and cost to start an LLC to understand what is needed to get started.
Since its launch in 2004, the company has helped over 500,000 businesses set up shop in different states. This should give you an idea of what you can expect from the company. Such experience generally makes more people want to work with IncFile.
In case you are finding it hard to get a statutory agent, do not worry, as IncFile has your back covered. This is because the company offers different packages and all of them include the registered agent service. So, you should not have a problem meeting the Arizona requirements for LLC formation.
Having fantastic customer feedback also sends the message that it is a reliable company. Having over 27,000 reviews online, with most being positive, sends a message that you are dealing with a top-rated company.
How to Start an LLC in Arizona
- Name Your Arizona LLC
- Choose Your Registered Agent
- File Articles of Organization
- Prepare an Operating Agreement
- Obtain an EIN
- File Annual Reports
Step 1: Name Your Arizona LLC
It is vital to have a unique name when going through the process of Arizona LLC formation. The name that you choose for business in Arizona should have the following features;
- It must be available for use in Arizona state for you to get licenses and permits
- The name has to meet the existing Arizona business naming requirements
- It should also be available in terms of a web domain
Under the web domain section, check your business name online to see its availability.
Step 2: Choose Your Registered Agent
Like most states, Arizona LLC formation requires that you choose a statutory agent. This is the person that would act as the main contact person for the state. Sometimes you may need to pay a registered agent service to provide this service.
The other requirements for a statutory agent include;
- Must be of age 18 years or older
- The agent must have a physical address in the state of Arizona
- Should be available during the normal working hours for some important processes
Step 3: File Articles of Organization
This next step is quite essential. Luckily, you can file articles of organization online so long as you have the right agent. This has made it easier for business owners to have their documents checked before forming an LLC in Arizona.
The articles of organization would also indicate more information such as if the business is member-managed or manager-managed, the business address, and more. Always consult with the attorney on how to file this information correctly.
The cost of filing articles of organization is $50. This amount is paid to the Arizona Corporation Commission.
Its filing address is:
Arizona Corporation Commission
Corporate Filings Section
1300 W. Washington St.
Phoenix, AZ 85007
Step 4: Prepare an Operating Agreement
Once you are done with the articles of organization, next is to come up with the LLC operating agreement. It is worth noting that operating agreements are not mandatory when you form your LLC in Arizona, but they are still vital.
An operating agreement is an important legal document that outlines the operating procedures and the business owners of an LLC. It is easy to see how such a document can help avoid possible conflicts in the future.
Step 5: Obtain an EIN
Even with the Articles of Organization filed, you still need an Employer Identification Number (EIN) when you form an LLC in Arizona.
The EIN is issued by the IRS to a limited liability company, and it is vital for filing taxes. You could say that the EIN can act as the social security number for a company.
Even a foreign LLC has to get an EIN to operate in the state.
Other than tax reporting, the EIN is vital when you want to open a business bank account and hire employees for the business.
Step 6: File Annual Reports
Once you have filed Articles of Organization in Arizona and there is a statutory agent acceptance, you do not need to worry so much about annual reports for an LLC in Arizona.
Arizona does not require that your LLC should file annual reports to be in good standing. Just make sure you do your taxes, and everything should continue working smoothly.
You should now have all the information you need to start your Arizona LLC. This guideline talks about getting the business name, finding a statutory agent, the cost to form your LLC, and anything else you need to pay.
Always remember to file your taxes or any other fees vital for maintaining the legality of your business. You can always consult your attorney to understand any other legalities to keep your business running legally.
Frequently Asked Questions
Forming an LLC in Arizona requires filing Articles of Organization which cost $50 for regular filing or $85 for expedited filing.
The Arizona Corporation Commission outlines the requirements that you need before an LLC is approved to operate legally in Arizona. Checking out its website can help you learn more.
It takes an average of 3 weeks to have the LLC paperwork approval in Arizona.
There are several tax classifications in Arizona, like any other state. You may have to consult with your attorney or check the business category to fully understand the taxes you are supposed to pay.
The usual timeline is 3 weeks for LLC formations. However, it can be done within 10 business days if you pay for expedited processing. This one costs $85 for the approval process.
+ 4 sources
- Sitefinity-2020-Oct. (2021). FAQs. [online] Available at: https://azcc.gov/corporations/faqs [Accessed 26 Jul. 2021].
- DO NOT WRITE ABOVE THIS LINE; RESERVED FOR ACC USE ONLY. FOREIGN REGISTRATION STATEMENT L025i. (n.d.). [online] . Available at: https://www.azcc.gov/docs/default-source/corps-files/forms/l025-application-for-registration.pdf?sfvrsn=82ee285b_10 [Accessed 26 Jul. 2021].
- Azdor.gov. (2012). Business | Arizona Department of Revenue. [online] Available at: https://azdor.gov/business [Accessed 26 Jul. 2021].
- Azsos.gov. (2021). Online Trade Name/Trademark Program Menu – Arizona Secretary of State. [online] Available at: https://apps.azsos.gov/apps/tntp/index.html?__cf_chl_jschl_tk__=pmd_953f5418069d6bb8087a6cb47da2a8f1d87a8855-1627290039-0-gqNtZGzNAeKjcnBszQi6 [Accessed 26 Jul. 2021].