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How to start an LLC in Arizona

By Brent Chudoba, editor Updated

Forming an LLC in Arizona costs $50 to file the Articles of Organization with the Arizona Secretary of State. There is no annual report fee. Arizona charges no franchise tax on a standard LLC. Newspaper publication of the Articles of Organization is required within 60 days of filing in most Arizona counties (three consecutive publications, typically $60-$120 total), EXCEPT in Maricopa and Pima counties, where the Arizona Corporation Commission posts the notice on its own website for free instead, so LLCs formed there skip this cost.

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

Arizona LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization)$50
Annual reportNone
Franchise or business taxNone
Registered agentRequired

Source: Arizona Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Arizona?

  1. Name your LLC. Pick a name that is available and meets Arizona naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Arizona requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization. Submit it to the Arizona Secretary of State and pay the $50 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Arizona have a franchise tax on an LLC?

No. Arizona does not impose a franchise tax or annual privilege tax on LLCs; the one-time Articles of Organization fee and statutory-agent maintenance are the only state-level costs.

How is an LLC taxed in Arizona?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Arizona has a state individual income tax with a top rate of 2.5% (flat brackets), so those profits are taxed on your Arizona return on top of federal tax. Arizona moved to a flat individual income tax rate of 2.5% beginning tax year 2023 (accelerated from a planned phase-down once a revenue trigger was met). There are no graduated brackets or X&Y tax tables for tax year 2023 and after. A further cut to 2.42% (SB1318) was proposed for TY2026 but the bill died in the legislature, so 2.5% remains in effect for 2025 and 2026.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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