How to form 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.

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.

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.

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.

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.

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.

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.

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.

Arizona does not issue a single statewide general business license, but most LLCs will still need licenses or permits depending on their industry and location. If your LLC sells taxable goods or certain services, you must obtain a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue, which costs $12 per business location. Cities like Phoenix, Tucson, and Scottsdale have their own local business license requirements with separate fees and renewal schedules. Check with your city or county clerk's office and the Arizona Department of Revenue to identify every license your specific business activity requires before you open.

Yes, non-residents and foreign nationals can form an Arizona LLC without any residency requirement — you simply need a valid Arizona registered agent with a physical in-state address. There is no requirement that the members or managers live in Arizona or be U.S. citizens. However, if you operate your Arizona LLC in another state (maintaining an office, hiring employees there, or regularly conducting business there), that state will likely require you to register as a foreign LLC and pay its fees. Keep in mind that choosing Arizona purely for lower fees while operating elsewhere can create unexpected compliance costs in your home state.

A single-member Arizona LLC is taxed as a sole proprietorship by default, while a multi-member LLC is taxed as a partnership — both pass income through to members who report it on their personal Arizona state income tax returns, which are taxed at a flat 2.5% rate as of 2023. Arizona does not impose a separate LLC franchise tax or privilege tax on the LLC entity itself. If your LLC sells taxable products or certain services, you must collect and remit Transaction Privilege Tax (Arizona's version of sales tax), with rates varying by city and county but typically ranging from 5.6% to over 10% combined. LLCs that elect S-corp or C-corp taxation for federal purposes follow the corresponding Arizona corporate income tax rules.

To dissolve an Arizona LLC, you file Articles of Termination with the Arizona Corporation Commission along with a $35 filing fee (online) or $50 by mail. Before filing, the LLC should settle all debts, distribute remaining assets to members, and cancel any licenses or permits, including your Arizona Transaction Privilege Tax license with the Department of Revenue. If your LLC was subject to the newspaper publication requirement when it was formed, no additional publication is needed at dissolution. The ACC typically processes terminations in a similar timeframe to formations, and once approved your LLC is officially dissolved and no longer liable for ongoing state fees.

A sole proprietorship costs nothing to start in Arizona and has zero ongoing paperwork, but it offers no liability protection — your personal assets like your home and savings are at risk if your business is sued or incurs debt. An Arizona LLC costs $50 to form and provides a legal separation between you and the business, so creditors generally cannot pursue your personal assets for business obligations. For most Arizona entrepreneurs earning more than a few thousand dollars a year or working in any field with meaningful liability exposure (construction, consulting, real estate, food service), the LLC's protection easily justifies the small filing fee. A sole proprietorship may make sense only for very low-revenue, low-risk side projects where you plan to test an idea before committing.