LLC Cost in Arizona – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.
arizona_state_seal

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

Our Rating & Pricing

Top Features

Learn More

#1 TOP PICK

$0 + State Fees

  • 100% accuracy guarantee

  • Worry-free service

  • Great customer support

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

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

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.

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.

One of the most significant costs associated with maintaining an LLC in Arizona is the annual report fee. This fee must be paid each year to keep the LLC in good standing with the state. Failure to pay this fee can result in the LLC falling out of good standing, potentially leading to fines or even the dissolution of the LLC.

In addition to the annual report fee, LLCs in Arizona are also required to pay a filing fee when registering with the state and any necessary fees for amendments or changes to the LLC’s information. These fees can add up over time, so it’s important for business owners to budget accordingly.

Another cost to consider when maintaining an LLC in Arizona is the requirement for a statutory agent. A statutory agent is a person or company designated to receive legal documents on behalf of the LLC. There are fees associated with hiring a statutory agent, so business owners should be prepared to include this cost in their budget.

For some businesses, hiring a professional accountant or attorney to handle annual filings and other compliance requirements can be a beneficial investment. While this may incur additional costs, it can give business owners peace of mind knowing that their LLC is being managed by experts who understand the complexities of Arizona’s business laws.

Overall, the cost of maintaining an LLC in Arizona can vary depending on the specific needs and requirements of the business. It’s essential for business owners to carefully consider these costs and plan accordingly to ensure their LLC remains in good standing with the state.

In conclusion, while maintaining an LLC in Arizona may come with various costs, these expenses are essential for ensuring compliance with state regulations and protecting the legal status of the business. By understanding and budgeting for these costs, business owners can maintain their LLC successfully and focus on growing their business without any costly legal issues.

In Conclusion

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.

1 thought on “LLC Cost in Arizona – How Much to Pay for an LLC”

  1. Hola, quiero abrir una LLC en Arizona u otro estado y quiero hacerlo con un agente, que me recomiendan que me salga bien de precio la constitucion y los gastos anuales?

    Reply

Leave a Comment