How to Form an LLC in Arizona (2026)

1. 1Choose a name for your LLC and verify availability by searching the Arizona Corporation Commission database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent (called a "statutory agent" in Arizona) with a physical street address in Arizona. You can serve as your own statutory agent.
3. 3File Articles of Organization with the Arizona Corporation Commission (ACC). The filing fee is $50. File online through eCorp for faster processing (3-5 business days).
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost for tax filings and banking.
5. 5Create an operating agreement to define ownership, management, and profit distribution. Not legally required in Arizona but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Publish a Notice of Formation in a newspaper of general circulation in your county within 60 days, unless you are in Maricopa or Pima county (these are exempt because the ACC publishes online).
8. 8Obtain necessary business licenses and permits. Arizona does not have a general state business license, but many cities and counties require local licenses.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Publish Notice of Formation in a local newspaper (if not in Maricopa or Pima county)
• ✓Open a dedicated business bank account
• ✓Apply for a Transaction Privilege Tax (TPT) license if selling goods or services
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓Apply for any city-specific business licenses required in your area

Your Arizona LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." The name cannot include words like "Association," "Corporation," or "Incorporated." Words like "Bank," "Trust," or "Insurance" require special licensing. The name must be distinguishable from all other business names registered with the Arizona Corporation Commission.

Arizona LLCs are pass-through entities by default. Members pay Arizona individual income tax on their share of profits (rates range from 2.5% flat rate). Arizona does not impose a franchise tax or separate entity-level tax on LLCs. You may need to collect and remit Transaction Privilege Tax (Arizona's equivalent of sales tax) if selling taxable goods or services.

LLC vs. other structures in Arizona

Arizona is one of the cheapest states for LLC formation at just $50 with no annual report or franchise tax. This makes an LLC more cost-effective than incorporating. The only extra cost is the publication requirement ($50-$300) for counties outside Maricopa and Pima. For profitable LLCs, an S-Corp election can reduce self-employment taxes.

• •Arizona does not require annual reports or annual fees for LLCs — this is a major advantage
• •Maintain a statutory agent with a physical address in Arizona at all times
• •Keep your operating agreement current and update it when members join or leave
• •File Arizona state income tax returns for all members receiving pass-through income
• •Renew your Transaction Privilege Tax (TPT) license and file TPT returns if applicable

Arizona is one of the most affordable states for LLC formation with a low $50 filing fee and zero ongoing state costs. If you live and do business in Arizona, this is an excellent choice.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in Arizona, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What Arizona LLC Owners Need to Know

• •Arizona has one of the lowest LLC filing fees in the country at just $50
• •No annual report or franchise tax keeps ongoing costs minimal
• •Publication requirement applies unless your LLC is in Maricopa or Pima county (Phoenix, Tucson metro areas)
• •Arizona is a community property state, which affects how LLC interests are treated in divorce

Frequently Asked Questions

Official Arizona Resources

• Arizona Corporation Commission
• Arizona Online Filing (eCorp)
• Publication Requirement Info