Key Takeaways

  • Forming an Arizona LLC costs $50 for standard filing or $85 for expedited processing.
  • Name reservation is optional and costs $10 by mail or $45 online.
  • Arizona requires newspaper publication of LLC formation in certain counties, costing $60–$300.
  • There are no annual report fees for Arizona LLCs, but a $3 Statement of Change fee applies for amendments.
  • Optional services like hiring a statutory agent or using a formation company can increase total costs.

What Is the Cost of Forming an LLC in Arizona?

The cost of forming an LLC in Arizona is a topic that many entrepreneurs in the Grand Canyon State are interested in learning more about. When it comes to LLCs in Arizona, entrepreneurs have to think about filing fees and ongoing annual fees.

What is an LLC?

One of the defining characteristics of an LLC is that it provides its members with protection from personal liability for company obligations like debts. It also allows members and partners to take advantage of a simpler taxation method.

If you want to do business in the state of Arizona, you must register the LLC with the ACC (Arizona Corporations Commission). You will need to pay the ACC the statutory registration fees.

Name Search and Reservation

As you may have guessed, the first step in forming an LLC is selecting a unique name. To avoid confusion, you cannot select a name that is identical to that of any other entity formally registered in the state. The name you select cannot be very similar to the name of another company.

If you're not sure which names are available, you can check the ACC's website and search through the database of all the names that are taken.

The filing fee for reserving a unique name online is $45. If you want to save money, the filing fee for reserving a name by mail is just $10.

The name needs to contain words that indicate that the entity is an LLC. Some words that you can include in the name to fulfill this requirement include:

  • L.L.C.
  • LLC
  • Limited Liability Company

The state of Arizona requires that business owners fill out extra paperwork if they wish to include restricted words in the name. Some examples of restricted words are University, Bank, and Attorney. In some cases, you may need to have a licensed individual like a lawyer or doctor join your LLC before you can add restricted words to the name.

Prohibited words for the name of an LLC are FBI, Treasury, and Secret Service. In general, words that would cause individuals to confuse your LLC with a government agency are prohibited.

Once you've selected a unique name for your LLC, you should reserve a domain name for your LLC as soon as possible. The domain name should be fairly close to the name you've selected for your LLC. It is important that you buy a domain name even if you don't plan on creating your website immediately.

Check to see if the name of your LLC is available so that you can reserve your domain name. Even if you don't plan to make a website today, you may want to buy the domain name in order to prevent others from buying the domain name before you do. Not only should you consider a domain name when choosing a name for your LLC, but you should also keep a professional email address in mind.

The name of a professional LLC should contain "professional limited liability company" or an abbreviation of these words.

You can file an Application to Reserve Limited Liability Company Name for 120 days with the Arizona Corporation Commission. You can find this application on the website of the Corporation Commission.

Articles of Organization

Once you've chosen a name for your LLC, the next step is filing the Articles of Organization. These articles need to include the name and location of the company and the names and contact information of the members. If the company is only going to operate for a temporary amount of time, you should include the date on which the company should be dissolved.

Registration of the LLC

The fee for the registration of a domestic LLC is $50. However, if you want to expedite processing, the fee is $85. The registration fee for a foreign LLC is $150. If you want to expedite processing, you will need to pay $185.

The fee for reinstating a dissolved LLC is $100. It will cost you $135 to have the processing of the reinstatement expedited.

The average processing time for the Articles of Organization in the state of Arizona is 20 business days. You can pay $35 more to the state of Arizona to have the Articles of Organization processed in nine business days or so.

Publication Requirement in Arizona

Arizona has a unique requirement not seen in many other states: publication of the Articles of Organization in an approved newspaper. This requirement applies to LLCs located in counties other than Maricopa and Pima, which are exempt.

LLCs must publish a notice of formation in a newspaper that is approved by the Arizona Corporation Commission (ACC). The notice must appear in three consecutive issues.

  • Cost: Varies by newspaper, but typically ranges from $60 to $300 depending on the publication and county.
  • Deadline: Must be completed within 60 days of receiving notice of approval from the ACC.
  • Proof of Publication: Once the notice has run, the newspaper will send an affidavit that serves as proof. This document should be kept for your records but does not need to be filed with the ACC.

Failure to publish the notice properly can lead to administrative issues down the line.

Additional LLC Filing Costs and Optional Services

Beyond the core filing fees, entrepreneurs should consider other potential expenses when calculating the total Arizona LLC cost:

1. Statutory Agent Service:Arizona law requires each LLC to designate a statutory agent (also called a registered agent). While you can act as your own agent, many business owners choose a third-party service for privacy and compliance.

  • Typical Cost: $100–$300 per year

2. Trade Name Registration (if applicable):If you operate under a name different from your LLC’s legal name (a DBA or “Doing Business As”), you’ll need to register it.

  • Fee: $10
  • Note: Arizona does not require trade names to be unique, but they must not be misleading.

3. Certified Copies & Certificates of Good Standing:These documents are often needed for banking or business transactions.

  • Certified copy of formation documents: $5 + $0.50 per page
  • Certificate of Good Standing: $10

4. Statement of Change Fee:To update your LLC’s statutory agent or other key business information, Arizona charges a $3 fee for a Statement of Change.

Annual Fees and Compliance Requirements

Unlike many other states, Arizona does not require LLCs to file an annual report or pay an annual franchise tax. This can significantly reduce the long-term cost of maintaining an Arizona LLC.

However, ongoing compliance still involves:

  • Maintaining a statutory agent
  • Timely updates for changes to business information (e.g., principal address, member changes)
  • Renewing trade names, if applicable

Staying on top of these requirements helps keep your LLC in good standing and avoids potential penalties.

Frequently Asked Questions

1. How much does it cost to start an LLC in Arizona?The base filing fee is $50 for standard processing or $85 for expedited service. Additional optional and required costs may apply.

2. Is name reservation required before forming an Arizona LLC?No, reserving a name is optional. If you choose to do so, it costs $10 by mail or $45 online.

3. Do I need to publish my LLC formation in a newspaper?Yes, unless your business is located in Maricopa or Pima County. The cost ranges from $60 to $300 depending on the newspaper.

4. Are there annual fees for Arizona LLCs?No annual report or franchise tax is required. However, a $3 fee applies to changes like updating your statutory agent.

5. Can I be my own statutory agent in Arizona?Yes, but many business owners hire a professional service for privacy and compliance purposes. These services typically cost between $100 and $300 annually.

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