How to Start an LLC in Arizona

Arizona offers an affordable LLC formation process with a $50 filing fee to submit your Articles of Organization with the Arizona Corporation Commission (ACC). The state processes filings in 5-7 business days, and Arizona’s flat 2.5% income tax rate is one of the lowest in the nation. One unique requirement in Arizona is that new LLCs must publish a Notice of Formation in a newspaper for three consecutive weeks within 60 days of filing.

Follow these steps to start your Arizona LLC in 2026.

How to Start an LLC in Arizona (6 Steps)

Step 1: Name Your Arizona LLC

Your Arizona LLC name must be distinguishable from any other business entity on file with the Arizona Corporation Commission (ACC). The name must include a designator such as “Limited Liability Company,” “LLC,” “L.L.C.,” or similar abbreviation. You can search for available names using the ACC entity search.

If you find an available name and aren’t ready to file immediately, you can reserve it for 120 days by filing a Name Reservation with the ACC for $10. This prevents anyone else from registering the same name while you prepare your formation documents.

Before finalizing your name, check whether the matching domain name is available for your website and whether the name is available on social media platforms. You should also search the USPTO trademark database to make sure your desired name doesn’t infringe on an existing trademark.

Arizona naming rules:

• Must include “Limited Liability Company,” “LLC,” “L.L.C.,” or similar abbreviation
• Must be distinguishable from other business names on file with the ACC
• Cannot include words that imply the LLC is a bank, insurance company, or government agency without proper licensing
• Cannot contain the words “association,” “corporation,” “incorporated,” or abbreviations of these words

Step 2: Choose a Statutory Agent

Arizona requires every LLC to have a statutory agent (Arizona’s term for a registered agent) with a physical street address in Arizona. The statutory agent receives legal documents — including lawsuits, subpoenas, and official state correspondence — on behalf of your LLC. This is a legal requirement, and your LLC cannot be formed without designating a statutory agent.

You can serve as your own statutory agent (if you have an Arizona address), appoint a trusted friend or family member, or hire a professional registered agent service. While acting as your own statutory agent saves money, it means your personal address becomes public record and you must be available at that address during all normal business hours to accept documents.

Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $50 state fee. Using a professional service provides privacy, ensures you never miss an important document, and frees you from having to be physically present at a fixed address during business hours.

Step 3: File Your Articles of Organization

To officially create your Arizona LLC, you need to file Articles of Organization with the Arizona Corporation Commission (ACC). The fastest way to file is online through the ACC eCorp portal. You can also file by mail, but online filing is recommended for faster processing.

When completing the Articles of Organization, you’ll need to choose between a member-managed and manager-managed structure. In a member-managed LLC, all owners participate in running the business. In a manager-managed LLC, one or more designated managers handle day-to-day operations while other members are passive investors. Most small LLCs choose member-managed.

Filing details:

• Filing fee: $50
• Online filing: ACC eCorp (recommended)
• Processing time: 5-7 business days (standard)

Information required:

• LLC name
• Statutory agent name and address
• Principal office address
• Management structure (member-managed or manager-managed)
• Names and addresses of members or managers
• Organizer name and address

Step 4: Create an Operating Agreement

Arizona does not legally require an operating agreement, but having one is strongly recommended for every LLC, whether single-member or multi-member. An operating agreement is an internal document that establishes the rules for how your LLC is run, including ownership percentages, profit and loss distribution, voting rights, and what happens if a member wants to leave or if the LLC is dissolved.

Without an operating agreement, your LLC will be governed by the default rules in the Arizona Limited Liability Company Act, which may not align with your intentions. For example, the default rules assume profits are split equally among members regardless of their capital contributions. An operating agreement lets you customize these terms. Most banks and financial institutions also require a copy of your operating agreement before they will open a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. An EIN is a nine-digit number assigned by the IRS that acts as your LLC’s tax identification number — think of it as a Social Security Number for your business. You need an EIN to open a business bank account, hire employees, file federal taxes, and apply for business permits. Even single-member LLCs with no employees should get an EIN, as it helps keep your personal Social Security Number off business documents.

Step 6: Publish Your LLC Notice and Comply with Arizona Requirements

Arizona has a unique publication requirement that most other states do not have. Within 60 days of filing your Articles of Organization, you must publish a Notice of LLC Formation in a newspaper of general circulation in the county where your LLC’s statutory agent is located. The notice must run for three consecutive publications (typically three consecutive weeks). The cost of publication varies by newspaper but typically ranges from $50 to $300 depending on the county and newspaper you choose.

After publication is complete, you must file an Affidavit of Publication with the ACC within 90 days of your filing date. Failure to publish does not void your LLC, but it can result in the ACC administratively dissolving your LLC if they determine you have not complied with the requirement.

Arizona does not require an annual report for LLCs, which is a significant advantage. However, you should keep your statutory agent information current with the ACC and file amendments if any of your LLC’s key information changes. Arizona LLCs must also file state income tax returns, as the state imposes a flat 2.5% income tax on income passed through to members.

Arizona LLC Costs

Total first-year cost: $100-$650. This range covers the required state filing fee ($50), the publication requirement ($50-$300), and an optional statutory agent service. Arizona does not require annual reports, so ongoing costs after the first year are limited to your statutory agent service and any applicable taxes. See our complete guide to LLC costs by state.

Arizona LLC Taxes

Arizona has a flat 2.5% state income tax rate, which applies to LLC profits passed through to members. This flat rate is one of the lowest in the country, making Arizona an attractive state for LLC owners. Arizona reduced its income tax to a flat rate in recent years, simplifying tax obligations for business owners. LLCs are treated as pass-through entities for tax purposes, meaning the LLC itself does not pay state income tax — instead, profits flow through to the members’ personal tax returns.

Arizona does not impose a separate franchise tax or gross receipts tax on LLCs. This keeps ongoing business tax costs low compared to states that layer on additional business taxes beyond the income tax.

Arizona has a state sales tax (called a Transaction Privilege Tax or TPT) rate of 5.6%, with local jurisdictions adding their own rates, for a combined rate that typically ranges from 7% to 11% depending on your location. If your LLC sells taxable goods or services, you’ll need to register for a TPT license through the Arizona Department of Revenue. Note that Arizona’s sales tax is imposed on the seller (not the buyer), though most businesses pass the cost to customers.

Remember that all LLC members still owe federal income tax and self-employment tax (15.3%) on their share of LLC profits, regardless of the state’s tax treatment.

Arizona LLC Annual Requirements

Arizona does not require LLCs to file an annual report, which simplifies ongoing compliance. This is one of the advantages of forming an LLC in Arizona compared to most other states. However, you must still keep your statutory agent information current with the ACC and file an amendment if your LLC’s name, statutory agent, or other key information changes.

You must complete the publication requirement within 60 days of filing your Articles of Organization and file the Affidavit of Publication within 90 days. Maintain accurate internal records, including your operating agreement, meeting minutes, and financial statements. Arizona LLCs must also file state income tax returns with the Department of Revenue.

Even though there is no annual report, you should periodically verify your LLC’s status with the ACC to ensure it remains in good standing. You can check your LLC’s status through the ACC’s online entity search tool.

Best LLC Formation Services for Arizona

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Frequently Asked Questions

How much does it cost to start an LLC in Arizona?

The state filing fee for an Arizona LLC is $50, which is the cost to file your Articles of Organization with the ACC. You’ll also need to pay for the publication requirement ($50-$300 depending on the newspaper). Additional costs may include a statutory agent service ($39-$299/year) and a name reservation ($10, optional). Most people spend between $100 and $650 in their first year.

How long does it take to form an LLC in Arizona?

Standard processing through the ACC takes 5-7 business days when filed online. Expedited processing is available for an additional fee. Filing by mail takes longer, often 2-4 weeks. Remember that after filing, you must also complete the publication requirement within 60 days.

What is the Arizona LLC publication requirement?

Within 60 days of filing your Articles of Organization, you must publish a Notice of LLC Formation in a newspaper of general circulation in the county where your statutory agent is located. The notice must appear in three consecutive publications. After publication, you must file an Affidavit of Publication with the ACC within 90 days of your original filing. Publication costs typically range from $50 to $300.

Do I need a statutory agent in Arizona?

Yes, every Arizona LLC is required by law to have a statutory agent (Arizona’s term for a registered agent) with a physical street address in Arizona. The statutory agent accepts legal documents, including lawsuits and official state mail, on behalf of your LLC during normal business hours. A P.O. box cannot be used as a statutory agent address.

Does Arizona require an operating agreement?

No, Arizona does not legally require an operating agreement. However, creating one is strongly recommended because it defines member roles, profit sharing, voting procedures, and decision-making processes. Without one, your LLC is governed by the default rules in the Arizona Limited Liability Company Act.

How are LLCs taxed in Arizona?

Arizona has a flat 2.5% state income tax rate. LLC profits pass through to members’ personal tax returns and are taxed at this rate. Arizona does not impose a separate franchise tax or gross receipts tax on LLCs. Members still owe federal income tax and self-employment tax (15.3%) on their share of profits.

Does Arizona require an annual report for LLCs?

No, Arizona does not require LLCs to file an annual report. This is a significant advantage over most other states that charge annual report fees. You still need to keep your statutory agent information current and file amendments if your LLC’s information changes.

Can I be my own statutory agent in Arizona?

Yes, you can serve as your own statutory agent in Arizona as long as you have a physical street address in the state (not a P.O. box) and are available at that address during normal business hours to accept legal documents. Your address will become part of the public record. Many LLC owners prefer using a professional registered agent service for privacy and convenience.

Can a non-resident form an LLC in Arizona?

Yes, you do not need to be an Arizona resident or a U.S. citizen to form an LLC in Arizona. However, you will need a statutory agent with a physical address in Arizona. Many non-residents use a professional registered agent service for this purpose. You will still need to complete the publication requirement. If you conduct business in another state where you live, you may also need to register your Arizona LLC as a foreign LLC in that state.