Start Your Arizona LLC

Quick facts about forming an Arizona LLC

Item	Details
Filing Fee	$50 (online or mail)
Processing Fee	$35 state expedited processing fee
Processing Time	3–5 business days with expedited processing; 14–16 business days standard
Annual Report Fee	None
Statutory Agent Required	Yes, must have a physical address in Arizona
Publication Requirement	Yes, 3 consecutive publications in an approved newspaper, unless your statutory agent is in Maricopa or Pima County
State Franchise Tax	None for LLCs
Business License	No statewide general license, but a $12 TPT license is required to sell taxable goods or services, and local licenses may apply
Managing Authority	Arizona Corporation Commission

One of the most important decisions you will make when starting a business is what type of legal entity to create for your company. A Limited Liability Company (or LLC) is easier to create and operate than a corporation while still providing many of the same advantages that a corporation offers.

As the name implies, a common reason to form an LLC is that it provides “limited liability” to the members of the LLC. In other words, a member’s personal liability for debts or losses of the business is limited when the business is an LLC.

Specific benefits of forming your LLC in Arizona include:

• Arizona does not require LLCs to file an annual report.
• Arizona allows single and multiple-member LLCs.
• You do not have to be an Arizona resident to form an Arizona LLC.
• Arizona allows both professional and foreign LLCs.
• An Arizona LLC can be member or manager-managed.
• Arizona law recognizes and defers to the terms of an LLC operating agreement regarding the operation of the business and sharing of profits.

How to form an Arizona LLC in 6 steps

Starting your LLC in Arizona is a straightforward process, but there are a few state-specific requirements you’ll need to follow, like publishing your LLC formation in an approved newspaper (if applicable) and filing your articles of organization with the Arizona Corporation Commission.

Here’s what you’ll need to do:

1. Choose a name for your Arizona LLC
2. Appoint a statutory agent
3. File your Articles of Organization
4. Publish your LLC formation (if required)
5. Create an operating agreement
6. Get an EIN (Employer Identification Number)

Each step is explained in more detail below so you can confidently start your Arizona business the right way.

Step 1: Name your Arizona LLC

Once you have decided to form an LLC, you need to decide on a name for your company. Arizona requires the name of an LLC to contain the words “Limited Liability Company” or the abbreviations “LLC,” “L.L.C.,” “L.C.,” or “LC.” If the entity is a professional LLC, the name must contain the words “professional limited liability company” or the abbreviations “P.L.L.C.,” “P.L.C.,” “PLLC,” or “PLC.” Arizona law also requires a name to be distinguishable on the records of the Commission or the Secretary of State from any of the following:

• The name of an existing person whose formation required the filing of a record by the Commission or the Secretary of State and that is not at the time administratively dissolved
• A name under which a person is registered to do business in Arizona by the filing of a record by the Commission or the Secretary of State
• A name currently reserved by another entity
• A name registered under Section 44-1460 (Registration of trade name, title, or designation)

You will also need to make sure that your chosen name is available. To check, run an Arizona business entity search on the Arizona Corporation Commission’s (ACC) Arizona Business Center by typing the name you want to use into the search box. When you have settled on an available name, you can reserve it for 120 days for $10 ($45 expedited) or move straight on to filing.

Step 2: Choose a statutory agent

An Arizona LLC must designate a “statutory agent,” commonly known as a “registered agent” in other states. The statutory agent in Arizona is an individual or business entity that has agreed to accept service of legal documents and notices on behalf of the LLC. The statutory agent can be an individual Arizona resident, a domestic corporation or an LLC, or a foreign corporation or an LLC authorized to do business in Arizona. The statutory agent must have a physical street address in Arizona and must accept the appointment. When you file online, the agent receives an email and must accept within 72 hours, or the filing is automatically rejected. Paper filings need a signed Statutory Agent Acceptance form.

If you form your LLC with us, we also offer registered agent services and you can choose to appoint us as your statutory agent in Arizona.

Step 3: File the Articles of Organization

The Articles of Organization officially create your Arizona LLC with the state. This document includes basic details such as your LLC’s name, business address, statutory agent, and management structure. Once filed with the Arizona Corporation Commission and approved, your LLC is legally recognized and authorized to do business in the state.

State fees

Creating an LLC in Arizona will require payment of several mandatory fees. The required fees will vary depending on how many documents and/or services are involved. All filing fees are nonrefundable, and cash is only accepted at the Phoenix office for in-person submissions.

The cost of an LLC in Arizona may include some of the following fees:

• Filing Articles of Organization $50 ($85 for expedited processing)
• Application for registration of foreign limited liability company $150 ($185 for expedited processing)
• Name reservation $10 ($45 for expedited processing); next-day ($100), same-day ($200) and two-hour ($400) service are also available
• Transfer of name reservation $10
• Registration of a trade name with the Arizona Secretary of State $10
• Registration of trademark or service mark with the Arizona Secretary of State $15
• Changing your statutory agent after formation $5 ($40 for expedited processing)
• Publication cost (if required) depends on the newspaper in which the notice is published

Requirements

The formation of an Arizona LLC requires one or more members. A member is not required to be an Arizona resident nor is there an age requirement. A member may be an individual, business corporation, nonprofit corporation, partnership, limited partnership, limited liability company, general cooperative association, limited cooperative association, unincorporated nonprofit association, statutory trust, business trust, common-law business trust, estate, trust, association, joint venture, public corporation or government or governmental subdivision, agency, or instrumentality or any other legal or commercial entity.

An Arizona professional limited liability company (PLLC), defined in A.R.S. Section 29-4101.4 is “a limited liability company organized under this chapter for purposes that include rendering one or more categories of professional services.” “Professional service” is defined as “a service that may be lawfully rendered only by a person licensed or otherwise authorized by a licensing authority in this state to render the service.”

Arizona also recognizes foreign limited liability companies, defined as “an unincorporated entity that is formed under the law of a jurisdiction other than this state and that would be a limited liability company if the unincorporated entity were formed under the law of this state and includes a foreign series for the purposes of this article.” With limited exceptions, the law of the jurisdiction of formation of a foreign limited liability company governs both internal affairs of the company and the liability of a member as a member and a manager as a manager for a debt, obligation, or other liability of the company.

Although the Articles of Organization you need to file may include additional information, at a bare minimum they must include:

• Designation as a regular or professional LLC
• The name and address of the LLC
• A description of services provided if the LLC is a professional LLC
• Name and address of the statutory agent
• Designation as a member-managed or manager-managed LLC
• Signature of LLC’s organizer.

How to file

The Articles of Organization for your LLC may be filed online through the ACC’s Arizona Business Center (formerly eCorp), or in person or by mail at the Arizona Corporation Commission, 1300 West Washington Street, Phoenix, Arizona 85007.

With expedited processing ($35 on top of the filing fee), filings are typically processed in 3 to 5 business days. Regular processing typically takes 14 to 16 business days. If you need it faster, the ACC also offers next-day ($100), same-day ($200) and two-hour ($400) service.

Step 4: Newspaper publication

Arizona has a somewhat unique publication requirement for newly formed LLCs. If it applies to you, a notice of LLC formation must be published in an approved newspaper in the statutory agent’s county in three consecutive publications, within 60 days after the Arizona Corporation Commission approves your articles. The ACC will tell you by letter if you need to publish. The notice must include the following information:

• Name and address of the LLC
• Name and address of the statutory agent
• Whether the LLC is member-managed or manager-managed
• Names and addresses of managers or members, depending on the management structure

The exception to the publication rule applies if your statutory agent is in Maricopa or Pima County, in which case the ACC posts notice of your LLC’s formation on its own database and you don’t need to publish.

Step 5: Create an operating agreement

An operating agreement serves as the roadmap for how your LLC will run, covering finances, management, and member responsibilities. Once signed, it becomes a legally binding contract between members under A.R.S. Section 29-3105, which governs:

• Relations among members and between members and the LLC
• The rights and duties of the manager
• How the company conducts its activities and affairs
• How the agreement can be amended

Arizona law lets LLC members decide how to divide ownership and profits: equally or in any way they agree on. The Arizona LLC operating agreement formalizes those arrangements and helps prevent future disputes.

It should also clarify financial responsibility and liability protection for members. Without it, individuals may be more vulnerable to being held personally liable for company debts.

Finally, the agreement outlines your management structure, whether your LLC is member-managed (all members share authority) or manager-managed (a designated manager runs the business).

Is an operating agreement a must?

Arizona doesn’t require a written operating agreement. Under A.R.S. Section 29-3102, an operating agreement can be written, oral or implied, and it isn’t filed with the Arizona Corporation Commission. A written agreement still helps define how the LLC will operate, strengthens liability protection for the members and reduces the likelihood of disputes. Whatever form it takes, it is governed by A.R.S. Section 29-3105.

Step 6: Apply for an EIN

The Internal Revenue Service (IRS) identifies individuals using a Social Security Number. An Employer Identification Number (EIN), also referred to as a Federal Tax Identification Number, is the business equivalent of a Social Security Number. Issued by the IRS, an EIN is used to distinguish business entities for tax and other related reasons. Along with tax filing purposes, your LLC will likely need an EIN to apply for federal/state/local permits and licenses as well as open bank accounts and apply for financing.

Applying for an EIN can be accomplished online through the IRS website for an LLC whose principal place of business is located in the United States or U.S. Territories. You will need a valid Taxpayer Identification Number (SSN, ITIN, EIN) and may only file one application per day.

We can also submit an EIN application for you if we assist you in creating your LLC.

What to do after you’ve formed an LLC

Open a business bank account

One of the reasons you likely formed an LLC was to create a legal entity separate and apart from yourself. As a separate legal entity, your LLC needs its own bank account. Keeping financial transactions related to the LLC distinct from those of the members is crucial to maintaining the limited liability protection afforded by an LLC. Moreover, having a business bank account adds a level of professionalism to your LLC that can be important when transacting business.

Understand your ongoing annual LLC fees in Arizona

Unlike many other states, Arizona does not require LLCs to file an annual report with the state. While that means there are no annual fees directly related to the existence of your LLC, you may be required to file reports with other state and/or federal agencies.

If you plan to operate under a name other than your LLC’s legal name, you can register it as a trade name. See our guide to filing a DBA in Arizona.

Obtain relevant business licenses and permits

A general business license is not required by the State of Arizona. However, if you sell taxable goods or services, you’ll need a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue, which costs $12 per location plus any city fees. Certain types of businesses are also required to be licensed by the state. Contractors, for example, must register with the Arizona Registrar of Contractors. In addition, individual cities or towns may require you to be licensed if you plan to do business within the city/town limits. Learn more about business licenses and permits in Arizona and Arizona business license costs from our guides.

Looking for funding? See our list of small business grants in Arizona. And if you ever decide to close the business, here’s how to dissolve an Arizona LLC.

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