How to Form an LLC in Arizona | 2025 Guide

If you’re wondering how to form an LLC in Arizona, know that the process is straightforward and cost-effective, especially compared to other states. Arizona’s lack of annual reporting requirements and simplified filing system make it an attractive destination for entrepreneurs.

In this article, you’ll learn how to register your limited liability company, how much it costs, who can own one (even if you don’t live in Arizona), and how it compares to neighboring states like Nevada, New Mexico, and California. We’ll also touch on taxes, licensing, and ongoing compliance, so you can move forward with confidence. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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How to Start an LLC in Arizona (Step-by-Step)

Step 1: Choose a Name for Your Arizona LLC

Before filing any paperwork, your LLC name must comply with Arizona naming rules. It must include “Limited Liability Company,” “L.L.C.,” or “LLC,” and it can’t conflict with any existing business entity registered with the Arizona Corporation Commission (ACC)¹. You can search for name availability on the ACC’s Entity Search tool.

You may optionally reserve your name for 120 days by submitting a reservation form online ($45) or by mail ($10).

Step 2: Appoint a Statutory Agent

Every Arizona LLC must designate a statutory agent (also known as a registered agent). This person or company is responsible for receiving legal documents, such as lawsuits and state correspondence.

The statutory agent’s name and street address (no PO boxes) must be included in your LLC paperwork. You can serve as your own agent, or hire a registered agent service if you’d prefer added privacy or convenience.

Step 3: File Articles of Organization with the Arizona Corporation Commission

To officially register your limited liability company, file the Articles of Organization² with the Arizona Corporation Commission.

• Fee: $50 standard; +$35 for expedited processing.
• Filing methods: Online (via eCorp³) or by mail.
• Details required: LLC name, principal address, LLC members, management structure (member-managed or manager-managed), and statutory agent’s name and address.

Once your Articles are approved, your LLC is legally formed.

Step 4: Satisfy the Arizona LLC Publication Requirement

Arizona requires most new LLCs to publish a notice of formation in a newspaper approved by the ACC for three consecutive weeks⁴.

Exceptions: If your LLC’s known place of business is in Maricopa or Pima counties, the Arizona LLC publication requirement is waived because the ACC handles publication internally.

If required, you’ll need to submit proof of publication (an affidavit from the newspaper) to the ACC.

Step 5: Create an LLC Operating Agreement

Although not legally required, an LLC operating agreement is very important. This internal document outlines how your business will be managed and how responsibilities and profits are divided among LLC owners.

Single-member LLCs and multi-member LLCs both benefit from having a written agreement, especially in legal disputes or when applying for a business bank account or credit union account.

While the Arizona Corporation Commission doesn’t enforce operating agreements, the Arizona Secretary of State encourages having one to avoid internal disputes and ensure proper documentation of your business structure.

Step 6: Apply for an Employer Identification Number (EIN)

An EIN, also known as a federal tax identification number, is required for most LLCs. You’ll need one if your LLC has more than one member, if you have employees, or if you plan to open a separate business bank account.

You can apply for free through the Internal Revenue Service (IRS) online⁵.

Step 7: Register for Transaction Privilege Tax (TPT) and Business Licenses

If your business involves selling goods or professional services, you may need to register for Transaction Privilege Tax (Arizona’s version of sales tax) through the Arizona Department of Revenue⁶.

Arizona doesn’t have a general statewide business license, but many counties and cities (like Phoenix or Tucson) require local licensing. Check with your local Arizona commerce authority or municipality for rules specific to your industry and location.

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What Are the Business Requirements for an Arizona LLC?

To stay compliant, your Arizona LLC must:

• Maintain a valid statutory agent at all times.
• Keep accurate business records and an up-to-date LLC operating agreement.
• Apply for and renew any necessary business licenses.
• Pay applicable taxes, including federal income tax and sales tax (TPT).
• Maintain a separate business bank account to avoid mixing personal and business finances.

Although Arizona doesn’t require an annual report, you’re still responsible for updating the ACC if your address or statutory agent changes.

What Are the Benefits of Starting an LLC in Arizona?

There are many great things about starting an LLC in Arizona:

• No annual reporting requirement: Unlike most states, Arizona doesn’t require LLCs to file annual or biennial reports.
• Affordable formation fees: Just $50 to register your LLC (plus optional expedited processing).
• Flexible ownership: LLC owners can be individuals, corporations, or other LLCs—even if they live out of state or outside the U.S.
• Strong asset protection: An Arizona LLC separates your personal assets from business debts, shielding you from liability.
• Attractive tax environment: Arizona has a flat state income tax rate and no tax on LLC income at the entity level—profits pass through to the LLC members and are taxed on personal returns.

How Much Does It Cost to Start an LLC in Arizona?

Item	Cost
Articles of Organization	$50
Expedited Processing (optional)	+$35
Name Reservation (optional)	$10–$45
Registered Agent (if hired)	$100–$300/year
Publication Requirement	Varies by newspaper
Local Licenses	Vary by city/county
EIN (IRS)	Free

Total startup costs can range from $50 to $500, depending on your business needs.

Can I Open an LLC in Arizona Without Living There?

Yes. You do not have to live in Arizona to form an LLC there. You can be a resident of another U.S. state—or even a different country—and still register a domestic Arizona LLC.

Note that you must maintain a statutory agent with a physical address in the state.

Can a Nonresident Open a Company in Arizona?

Absolutely. Nonresidents, including foreign nationals, can open an Arizona LLC or register a foreign LLC (if already formed in another state or country).

Steps for non-residents include:

• Appointing a valid statutory agent.
• Filing the correct formation documents.
• Applying for an EIN through the Internal Revenue Service.
• Complying with U.S. tax laws and local licensing.

Keep in mind that if you're forming a professional LLC—for services like law, medicine, or architecture—you must comply with licensing boards regulated by the Arizona Secretary of State or other relevant agencies.

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Comparison with Other States

Feature	Arizona	Nevada	New Mexico	California
Formation Fee	$50	$75	$50	$70
Annual/Biennial Reports	None	$350/year	None	$20 + $800 tax
Registered Agent Required	Yes	Yes	Yes	Yes
Foreign Ownership Allowed	Yes	Yes	Yes	Yes
Publication Requirement	Yes (except 2 counties)	No	No	No
Sales Tax (TPT or similar)	~5.6% base + local	~6.85%	~5.125%	~7.25% base + Local
Business-Friendly?	Yes	Yes	Yes	Moderate

Arizona offers one of the easiest LLC setups in the country with low fees, no annual reports, and strong liability protections.

Nevada and New Mexico are also popular for privacy and tax perks, but Arizona strikes a balance between affordability and regulatory simplicity.

California, by contrast, imposes higher fees and strict tax rules.

FAQs About Arizona LLCs

Does Arizona Offer Privacy Protections for LLCs?

Arizona requires public disclosure of the statutory agent’s name, but you can use a commercial registered agent service to maintain privacy. Ownership details may also be listed, depending on how you file.

Why Do People Use Arizona for LLCs?

Entrepreneurs choose Arizona because of its low fees, no annual report requirement, and simple filing process. It's especially appealing for small businesses, online sellers, and startups looking to reduce red tape.

Is an Arizona LLC Tax-Free?

At the state level, yes. Arizona does not impose a state-level income tax on the LLC itself. However, LLC owners still pay federal income tax on profits and may owe Transaction Privilege Tax (TPT) on business activity.

What Are the Disadvantages of an Arizona LLC?

Before making a final decision, consider the disadvantages of starting an LLC in Arizona:

• Publication requirements for most counties can add complexity and cost.
• Limited privacy since agent and organizer names are public records.
• No central business license—you must check city and county requirements.
• Out-of-state banks may be hesitant without a physical presence in Arizona.

Conclusion

Arizona’s low startup costs, lack of annual reporting, and simple formation process make it an excellent place to start a new business. To set your Arizona LLC up for success, choose a compliant name, appoint a reliable statutory agent, and file your Articles of Organization with the Arizona Corporation Commission. If required, publish your formation notice in an approved newspaper.

Learn How to Form an LLC in State
Connecticut
Colorado
California

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Sources:

1. Arizona Corporation Commission – Entity Search
2. Articles of Organization – Form L010 (PDF)
3. LLC Forms – Arizona Corporation Commission
4. Arizona Newspaper Publication List (PDF)
5. Employer Identification Number – IRS
6. Transaction Privilege Tax – Arizona Department of Revenue