Arizona has one of the most affordable LLC structures in the country: $50 to file Articles of Organization with the Arizona Corporation Commission (ACC), no annual report, no franchise tax, and a flat 2.5% personal income tax. The catch is the publication requirement — outside Maricopa County (Phoenix metro) and Pima County (Tucson), every new LLC must publish a notice of formation in an ACC-approved newspaper for three consecutive weeks. In Maricopa or Pima, publication is waived because the ACC posts the notice on its own website. Standard online processing through the eCorp portal takes 14–16 business days; pay $35 to expedite to roughly 5 business days. Arizona is a particularly strong fit for tech founders in the booming Phoenix metro, real estate investors, e-commerce sellers, and logistics companies serving the Southwest.
Why form your LLC in Arizona
Phoenix is one of the fastest-growing tech and logistics hubs in the country. The newspaper publication requirement outside Phoenix and Tucson surprises new founders, but the long-term tax picture is excellent.
- No annual report required for LLCs
- No state-level franchise tax
- Flat 2.5% personal income tax — one of the lowest in the U.S.
- Publication requirement waived in Phoenix (Maricopa) and Tucson (Pima)
- Phoenix is one of the fastest-growing tech and logistics hubs in the country
- No state inheritance or estate tax
Best fit for: Tech (Phoenix metro) · Logistics & distribution · Real estate
Don’t want to file yourself? Northwest Registered Agent files your Arizona LLC for $39 + state fee and acts as your registered agent the first year free.
How to form a Arizona LLC in 7 steps
- 1Search the Arizona LLC name database
Use the Arizona Corporation Commission eCorp portal to search business names. The name must include "Limited Liability Company", "LLC", or "L.L.C." and may not be confusingly similar to an existing AZ entity. Reserve a name for $45 (held 120 days) if you need time to file.
- 2Appoint a Statutory Agent
Arizona uses the term "Statutory Agent" for what most states call a registered agent. The agent must have a physical Arizona street address (no PO boxes) and sign a written acceptance of appointment. You can be your own agent if you live in Arizona.
- 3File Articles of Organization (Form L010)
Submit online through the ACC eCorp portal. Standard filing fee is $50 with 14–16 business day processing. Expedited service is $85 ($50 + $35 expedite) with about 5 business days. The Articles include LLC name, principal office, statutory agent, member/manager structure, and management type.
- 4Complete the publication requirement (if outside Phoenix/Tucson)
If your statutory agent address is in any county other than Maricopa or Pima, you have 60 days to publish a Notice of LLC Formation in an ACC-approved newspaper for three consecutive weeks. Cost varies $40–$200 depending on the paper. Failing to publish can result in administrative dissolution.
- 5Apply for an EIN with the IRS
Get a federal EIN free at irs.gov. The application takes about 10 minutes. You'll need an EIN to open a business bank account, register for TPT, hire employees, and file federal taxes.
- 6Register for Transaction Privilege Tax (TPT)
Arizona's TPT is functionally a sales tax, but it's technically imposed on the seller. If you sell taxable goods or certain services, register through AZTaxes.gov. TPT licensing fees vary by city — Phoenix is $50, others range $1–$50. Combined TPT rates can reach 11%+ in some cities.
- 7Open business banking and stay compliant
Open a dedicated business bank account using your Articles of Organization and EIN. Keep personal and business finances completely separate to preserve your liability shield. Since Arizona has no annual report, your only ongoing state-level obligation is the TPT filing (if applicable) and maintaining your statutory agent.
File directly with Arizona Corporation Commission (ACC) →
Arizona LLC taxes & compliance
Arizona moved to a flat 2.5% individual income tax in 2023 — among the lowest in the U.S. for pass-through LLC owners. No annual report and no franchise tax keep ongoing costs near zero.
Ongoing compliance checklist
- No state annual report required (Arizona is one of only a few states with this benefit)
- No franchise tax
- Transaction Privilege Tax (TPT) filings if you collect tax — monthly, quarterly, or annually
- Federal income tax (Form 1065 multi-member, Schedule C SMLLC)
- Maintain a statutory agent with an Arizona street address at all times
Registered agent rules
Required — Arizona calls this a "Statutory Agent." Must accept service in writing.
Hidden costs new Arizona LLC owners forget
- Newspaper publication outside Maricopa/Pima counties: $40–$200
- Standard processing of 14–16 business days — pay $35 for 5-day expedited
- Transaction Privilege Tax (TPT) license fees — varies by city
- Statutory Agent service: $99–$300/year if commercial
- Foreign LLC qualification fee: $150
- Name reservation: $45 (optional, valid 120 days)
Should you use a formation service in Arizona?
You can absolutely file directly with the Arizona Corporation Commission (ACC) for the $50 state fee. The reasons most Arizona owners use a service anyway are (1) registered-agent privacy — keeping their home address off public filings — and (2) calendar reminders for ongoing compliance.
Have Northwest form your Arizona LLC for $39 + state fee
Free registered agent for the first year. Real human support. Privacy-by-default — your home address stays off public filings.
Arizona LLC: frequently asked questions
How much does it cost to start an LLC in Arizona?
The Arizona Corporation Commission charges $50 standard or $85 expedited (5 business days) to file Articles of Organization. Outside Phoenix (Maricopa) and Tucson (Pima), add $40–$200 for the mandatory newspaper publication. There's no annual report fee and no franchise tax, so ongoing yearly costs are essentially zero unless you collect TPT or hire a commercial statutory agent.
How long does it take to form an LLC in Arizona?
Standard online processing through the ACC eCorp portal takes 14–16 business days — among the slower in the country at the standard tier. Pay $35 to expedite ($85 total) and approval drops to about 5 business days. Mail-in filings can take 6–8 weeks.
What is the Arizona LLC publication requirement?
Outside Maricopa County (Phoenix) and Pima County (Tucson), every new Arizona LLC must publish a Notice of LLC Formation in an ACC-approved newspaper for three consecutive weeks within 60 days of formation. Costs run $40–$200. Inside Maricopa or Pima, publication is automatically handled by the ACC at no cost. Failing to publish where required can result in administrative dissolution.
Does Arizona require an LLC annual report?
No. Arizona is one of only a handful of states with no LLC annual report requirement. Once your LLC is formed and (if required) published, you have no recurring state-level filing obligation beyond maintaining your statutory agent.
What is Arizona TPT and do I need it?
Transaction Privilege Tax (TPT) is Arizona's version of sales tax. Technically it taxes the seller for the privilege of doing business, but it's passed on to customers. You need a TPT license if you sell taxable goods or services in Arizona. Register through AZTaxes.gov; licensing fees and rates vary by city.
Can I be my own statutory agent in Arizona?
Yes, if you have a physical Arizona street address (no PO boxes) and are 18 or older. Many founders use a commercial statutory agent service for two reasons: (1) keeping their home address off public filings, and (2) ensuring legal documents are received during business hours.
Is an Arizona LLC anonymous?
Partially. The Articles of Organization require the names and addresses of members or managers, which become public record. However, you can reduce exposure by using a commercial statutory agent (their address appears, not yours) and structuring as manager-managed with the manager being a separate entity. For full anonymity, consider Wyoming or New Mexico instead.
Can a non-resident form an Arizona LLC?
Yes. Arizona has no residency requirement for members or managers. The only Arizona-presence requirement is the statutory agent, which can be a commercial service. Many out-of-state founders form Arizona LLCs for the no-annual-report and 2.5% income tax benefits.