Key Takeaways

  • Forming an LLC in Arizona involves filing Articles of Organization with the Arizona Corporation Commission (ACC), appointing a statutory agent, and fulfilling publication requirements.
  • The average cost to form an LLC in Arizona is $50 for standard filing or $85 for expedited service, with optional fees for name reservation or certified copies.
  • Arizona LLCs don’t require annual reports, but they must keep a statutory agent and update changes through amendment filings.
  • The Arizona LLC publication requirement applies to businesses outside Maricopa or Pima counties and must be completed within 60 days of approval.
  • LLCs in Arizona may choose to be taxed as sole proprietorships, partnerships, or corporations depending on the number of members and IRS elections.

What are the Arizona LLC requirements?

An LLC is also referred to as a ‘hybrid' business structure. This is due to the fact that it combines elements of limited liability partnerships and a corporation. An LLC business structure with a flexible organization gives its members limited liability and is privy to tax efficiencies. Tax efficiency is the effort made to reduce tax liability, especially when given numerous financial decisions.

For federal income tax purposes, an LLC may be grouped as:

Step-by-Step Process to Start an LLC in Arizona

To form an LLC in Arizona, follow these essential steps to ensure full compliance with the Arizona Corporation Commission (ACC) requirements:

  1. Choose a Name for Your LLC – The name must be distinguishable from other registered entities and include “Limited Liability Company” or abbreviations like “LLC” or “L.L.C.”. You can check name availability through the ACC name search database.
  2. Appoint a Statutory Agent – Also known as a registered agent, this person or entity accepts legal documents for the LLC. The agent must have a physical address in Arizona.
  3. File the Articles of Organization – Submit your Articles of Organization to the ACC online, by mail, or in person. This document officially creates your LLC Arizona entity.
  4. Pay the Filing Fee – The standard filing fee is $50, or $85 for expedited processing.
  5. Comply with the Publication Requirement – If your principal office is not in Maricopa or Pima County, you must publish your LLC formation notice in an approved newspaper within 60 days of formation.
  6. Create an Operating Agreement – Though not mandatory, this document outlines ownership and management structures, helping prevent disputes among members.
  7. Obtain an EIN (Employer Identification Number) – Required for tax purposes, hiring employees, and opening business bank accounts. You can apply for an EIN for free on the IRS website.
  8. Register for State Taxes (if applicable) – If your LLC will collect sales tax or have employees, you must register with the Arizona Department of Revenue.

Can an LLC choose a tax group?

The type and number of members determine whether an LLC can choose a federal tax group. Single member LLCs may elect to be grouped as an S corporation, C Corporation, or a sole proprietorship. Multi-member LLCs can elect to be taxed as an S corporation, a partnership, or a C corporation. Unless an LLC meets all the requirements applicable to S corporations, it may not be allowed to elect to be taxed as an S corporation.

An LLC owned by a married couple may be taxed as a partnership or sole proprietorship, despite being owned by two members. Either form of taxation may be selected by the couple. The IRS accepts the husband and wife's decision to be taxed as a partnership or sole proprietorship according to the IRS Revenue Procedure 2002-69.

LLCs are required to file the following:

  • Articles of Organization with a cover sheet to the Arizona Corporate Commission.
  • Manager/member structure attachment.
  • Statutory Agent Acceptance form and filing fee.

Arizona LLC Tax and Reporting Obligations

Arizona LLCs enjoy tax flexibility, as they can choose to be taxed as a sole proprietorship, partnership, S corporation, or C corporation depending on their structure.

  • Single-member LLCs are typically taxed as sole proprietorships.
  • Multi-member LLCs default to partnership taxation unless they elect corporate status.
  • Electing S Corporation status can help reduce self-employment taxes for qualifying LLCs by allowing distributions that aren’t subject to those taxes.

Arizona LLCs do not file an annual report, unlike many other states, but they must ensure their statutory agent and address remain current.State-level taxes that may apply include:

  • Transaction Privilege Tax (TPT): Arizona’s version of sales tax for businesses selling goods or taxable services.
  • Employer Withholding Tax: Required for LLCs with employees.
  • Unemployment Insurance Tax: Applies if you hire employees in Arizona.

Failure to comply with these obligations can lead to administrative dissolution or penalties from the ACC.

What are the costs for filing an LLC?

The necessary filing fee is $50, and all forms must include this fee. An additional $35 is required for expedited review in order for the article to be approved in three to five days by the ACC. The E-file Arizona LLC formation system, operated online by the Arizona Corporate Commission, is the fastest and easiest way to form an Arizona limited liability company.

A letter containing instructions related to the publication of the LLC formation is then sent to the statutory agent upon approval by the Corporate Commission. Arizona LLCs are given 60 days after formation to comply with the publication requirements. Your LLC will be dissolved or revoked upon failure to comply.

You must post a notice in an ACC approved newspaper if your LCC's address isn't in Pima County or Maricopa as indicated in the address details of the Articles of Organization. You are given 20 days to remedy the problem in case your Article of Organization is rejected by the Arizona Corporation Commission. There are no annual or additional Arizona LLC filing fees or taxes once you form your Arizona LLC, which is good news.

A lawyer in Arizona can help you with the process.

Additional LLC Arizona Fees and Processing Options

Beyond the initial filing, Arizona LLC costs may include optional and maintenance-related expenses:

  • Expedited Filing Fee: $35 for 3–5 business day processing.
  • Certified Copies: $5 plus $0.50 per page.
  • Name Reservation: $10 if you wish to reserve your LLC name before filing.
  • Statutory Agent Services: Typically range between $100–$300 annually for professional registered agent services.
  • Foreign LLC Registration: Out-of-state businesses expanding into Arizona must register as a foreign LLC and pay a $150 filing fee.

Processing times for Arizona LLC filings vary:

  • Standard filing: 6–9 business days.
  • Expedited filing: 3–5 business days.

All filings can be made through the Arizona Corporation Commission’s eCorp portal for faster turnaround and electronic documentation.

What is contained in an Articles of Organization?

The following information must be included in the Articles of Organization:

  • The LLC's name.
  • Business address.
  • Name, address, and signature of the Organizer.
  • Type of management, that is, member-managed or manager-managed.
  • Name of the registered agent or statutory agent, completed acceptance form, and the address.

Articles of Organization are submitted to the Corporate Commission by LLC registrants. When the documents are submitted, a $50 filing fee must be paid.

Same-day or next-day processing is unfortunately not available in Arizona. Documents usually take six to nine working days to be processed. Processing time is minimized to three to five working days if you choose the expedited services, which is an additional fee.

To eliminate the confusion that comes with LLC naming requirements, you need to ensure that your LLC name complies with the rules set up by your state for LLC names. 

Ideal LLC Names

  • A name describing your commodities.
  • A name that allows you to have a .org, .com, .biz, .info, or .net at the end.
  • A name that is easily memorable to your customers.

Any name is acceptable as long as it has a ‘Limited Liability Company' at the end. You can also choose from its variant abbreviations like LLC. or L.L.C. A licensed doctor or a lawyer needs to be part of the LLC in the case of restricted words like University, Bank, or Attorney, which need extra paperwork.

Words that would confuse your LLC name with a state or federal agency like the Secret Service, Treasury, or FBI are prohibited. The name should not infringe on a Federal Trademark. You can check the accessible databases of the United States Patent and Trademark Office to see if your desired LLC name infringes on a Federal Trademark.

Arizona LLC Operating Agreement and Compliance

While not required by Arizona law, an Operating Agreement is highly recommended. This document defines how the LLC is managed, how profits and losses are distributed, and what happens if a member leaves or the company dissolves.

Key sections to include:

  • Member contributions and ownership percentages.
  • Voting rights and management responsibilities.
  • Profit distribution schedules.
  • Procedures for adding or removing members.
  • Dissolution terms.

Additionally, Arizona LLCs must maintain compliance documents, such as:

  • Updated statutory agent records.
  • Business licenses or permits, depending on industry and location.
  • Federal EIN and any local tax registrations.

Although Arizona doesn’t require an annual report, businesses should review their registration yearly to ensure the information on file with the ACC remains accurate.

Frequently Asked Questions

  1. How long does it take to form an LLC in Arizona?
    Standard filing takes 6–9 business days, while expedited service typically processes in 3–5 days through the Arizona Corporation Commission.
  2. Is there an annual report requirement for LLCs in Arizona?
    No, Arizona does not require annual or biennial reports for LLCs, making it one of the more maintenance-free states for business owners.
  3. Do I need a business license for my Arizona LLC?
    Most LLCs need at least a local business license, and some may need industry-specific permits. Check with your city or county for details.
  4. Can a nonresident form an LLC in Arizona?
    Yes. Non-U.S. citizens and out-of-state residents can form an LLC Arizona entity as long as they appoint a statutory agent with a physical address in Arizona.
  5. What happens if I don’t meet the publication requirement?
    If your LLC’s address isn’t in Maricopa or Pima County and you fail to publish within 60 days, your LLC could be administratively dissolved by the ACC.

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