Arizona LLC Costs
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When a business owner forms a limited liability company (LLC), it provides them with liability protection, unique tax benefits, state-specific incentives, and a manageable management structure. It is a common belief among small business owners and entrepreneurs that LLC formation in Arizona is expensive and overly complicated. However, it is pretty straightforward and worth the cost for many companies.
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Costs to start an LLC in Arizona
1
LLC Articles of Organization ($50)
- You must file your Articles of Organization with the Arizona Corporation Commission (ACC).
- The cost to file Articles of Organization in Arizona is $50.
- Expedted LLC services are available to those that file by mail for an additional $35.
2
Arizona publication requirement (varies between $30 to $300)
- In Arizona, you must publish a Notice of LLC Formation if you are newly forming.
- It must be in an approved publication in your LLC’s county and published for three consecutive weeks.
- The LLC cost for publication in Arizona will vary depending on the newspaper’s fees.
- If you fail to comply, your LLC will be terminated.
- Maricopa and Pima county are exempt from publication requirements.
3
Arizona registered agent fee (varies between $50 to $300)
- In Arizona, a registered agent is commonly called a statutory agent.
- When you appoint a registered agent in Arizona, you are letting the Arizona Corporation Commission know that someone is available during business hours to accept tax notices, subpoenas, and other necessary correspondence.
- Anyone that meets the Arizona state requirements can act as a registered agent.
- An LLC cannot act as its own registered agent in Arizona.
- The cost of appointing a registered agent will vary depending on the commercial service, LLC needs, and state filing fees.
4
Fees to form a foreign LLC in Arizona ($150)
- You must register as a foreign LLC if you have an existing LLC in another state and want to expand into Arizona.
- You can register as a foreign LLC online using Arizona Corporation Commission eCorp website.
- Or, you can complete the Foreign Registration Statement (Form L025),
- The LLC filing to register an Arizona foreign LLC is $150.
5
LLC name reservation fee ($45 online)
- Arizona does not require an LLC to register an LLC name prior to LLC formation.
- However, when you reserve an LLC, you ensure no one else can register the same company name before you go through the formation process.
- An LLC name in Arizona must be distinguishable from other company names in the state.
- You can reserve your Arizona LLC name for up to 120 days before formation.
- You can reserve an LLC name online using the ACC eCorp website.
- Or, you can complete the Application to Reserve Limited Liability Company Name (Form L001) and submit it by mail to the Arizona Corporation Commission.
- The cost to reserve an Arizona LLC name is $45 online and $10 by mail.
6
DBA filing fees in Arizona ($10)
- The business acronym DBA means ‘doing business as.’ A DBA, or assumed name, is any registered name that your business uses that is not its legal name.
- Arizona does not require an LLC to file a DBA when using a trade name.
- When you register for a trade name in Arizona, you secure the name for your exclusive use.
- You will register a trade name online with the Arizona Secretary of State.
- The LLC filing fee of a trade name in Arizona is $10.
7
Cost of certified document copies ($5)
- You will use the Records Request Form to order certified LLC document copies.
- Arizona’s cost for certified LLC documents is $5 and $.50 per page.
- The Arizona Corporation Division Records Section does offer expedited services for an additional $35.
8
Certificate of Good Standing ($10)
- Money lenders and banking institutions will require you to present a certificate of good standing before allowing you to open a business bank account.
- You can order your Certificate of Good Standing online using the ACC eCorp website.
- Or, you can complete the Records Request Form and submit it by mail to the Arizona Secretary of State.
- The filing cost for a Certificate of Good Standing is $10.
Steps to start an LLC in Arizona
1
Choose a business name
An LLC in Arizona must consider a few things before deciding on a company name.
- An LLC name in Arizona must be distinguishable from any other LLC in the state.
- Your LLC name in Arizona must meet all of the naming guidelines.
- Check web domain availability for the company name to keep branding simple.
You will use the Arizona Corporation Commission eCorp website to conduct a name search.
LLC name reservation fee
In Arizona, you do not have to reserve an LLC name before formation.
You can reserve your Arizona LLC name for up to 120 days before formation online or by mail.
The cost to reserve an Arizona LLC name is $45 online and $10 by mail.
The cost to reserve a company name in Arizona is $45 online, and $10 by mail. An LLC name is good for up to 120 days. Arizona does not require you to reserve an LLC name.
2
Appoint an Arizona registered agent
Arizona requires that you appoint a registered agent when forming an LLC.
The price for a Arizona registered agent or service varies beetween $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Arizona is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be an Arizona resident or a registered agent service authorized to conduct business in the state.
ZenBusiness
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness offers stand-alone Arizona LLC registered agent services. The price is $99 per year.
Northwest
- Total Out The Door Arizona LLC Formation Service Package – $43 a month and includes:
- Minnesota State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
LegalZoom
- Economy – $79 plus $153 Arizona filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
3
File Arizona Articles of Organization
You will file Arizona Articles of Organization with the Arizona Corporation Commission.
You can file online using the ACC eCorp website.
Or, you will complete the following forms – Form L010 – Articles of Organization, Form M002 – Statutory Agent Acceptance, Form L040 (Manager), Cover Sheet and submit them by mail.
The Arizona LLC cost to file the articles of organization is $50.
Arizona does offer expedited LLC services for mailed-in filings for an additional $35.
Mailing address:
Arizona Corporation Commission
Corporate Filings
1300 West Washington St.
Phoenix, AZ 85007
The Articles of Organization forms will ask you for various information about your LLC.
- LLC name and address
- Registered agent information
- LLC organizer(s) contact information
The fee in Arizona for filing your LLC articles of organization is $50.
4
Get an Arizona LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
The Internal Revenue Service, or IRS, assigns a 9-digit number to LLCs for free. It works as a social security number for companies for income tax purposes.
In Arizona, if you convert a sole proprietorship to an LLC, you will need to apply for an EIN.
Applying for an EIN is a simple process online through the IRS website.
Business banking for an Arizona LLC
You will want to keep personal banking accounts separate from business bank accounts. It protects your assets and credit scores.
Banks in Arizona will require a copy of your LLC’s articles of organization, operating agreement, and the EIN.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Arizona
When you hire a business attorney in Arizona, you are keeping the LLC formation process simple, and you have someone on your side who can handle incoming business-related issues.
Typically, a business attorney will offer first-time clients a free consultation.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in Arizona will cost $300 per hour.
LLC taxes in Arizona
- An Arizona LLC is considered a pass-through entity. It means you will file your personal tax returns rather than the LLC’s state tax return.
- If you sell physical products, you will use the Arizona Department of Revenue website to register for Arizona Transaction Privilege Tax (TPT) License.
- The Arizona state tax rate is 5.60%, and a max local and county rate of 5.60%.
- You must register for Unemployment Insurance Tax and Employee Withholding Tax through the Arizona Department of Revenue.
- Arizona state taxes can get complicated. Hiring a tax expert can avoid late fees, penalties, and possible dissolution.
Business licenses and permits in Arizona
The cost of your permits and business licenses will vary depending on your location and the type of business you do.
You will use the Arizona Department of Revenue website to find the business licenses you may need for your LLC.
The cost of a business licence in Arizona varies between $12 to $200. The total cost of permits and licences will depend on where your LLC is, and the type of LLC.
Arizona cities and county government agencies will have different rules and guidelines regarding permits and business licenses in Arizona. Contact the office for questions about the process, price, and office hours.
Notary public
You may find some of your Arizona LLC documents will require a notarization from a notary public.
Most government agencies have one in the office if you cannot locate one.
In Arizona, a notary public can only charge a max of $10 per notorial act.
Employer obligations in Arizona
- When hiring employees in Arizona, an LLC has specific obligations.
- A company must verify that all employees are eligible to work in the US by using Form I-9 from the USCIS Website.
- You must enroll in worker’s compensation insurance.
- You will use the Arizona New Hire Reporting Center to report all new hires.
- You can find complete lists of Arizona employer obligations through the Industrial Commission of Arizona and the Arizona Department of Economic Security websites.
Benefits of an Arizona LLC
- By forming an LLC in Arizona, you are keeping business banking simple. Banking institutions will require you to open an LLC bank account that is separate from your personal ones.
- LLCs and corporations have different compliance requirements in Arizona. Incorporations, for instance, have to answer to shareholders and stock owners when making critical business decisions.
- LLCs are pass-through entities in Arizona. It means that the LLCs are only taxed once through the member’s personal tax returns.
- When you form an LLC, it helps ensure that you are not double-taxed. Some business structures such as c-corporations are double-taxed, while LLCs are not.
- The cost of forming an LLC in Arizona is highly affordable. It only costs $50 to file articles of organization.
- Arizona has business incentives that are only available to LLCs. Arizona Innovation Challenge and Angel Investment Tax Credit Program are incentives available for LLCs.
FAQs
How long does it take to register an LLC in Arizona?
It takes 14-16 business days for the Arizona Corporation Commission to process an LLC formation if you file by mail and 1 to 2 business days for online filings.
The state of Arizona will expedite documents filed by mail for an additional $35.
How do I dissolve my Arizona LLC?
You will need to dissolve your Arizona LLC to avoid ongoing costs and fees from the state. You will file your articles of termination by completing the form and submitting it by mail.
The filing cost for LLC cancellation in Arizona is $35.
Does Arizona have a biennial/annual report fee?
Arizona does not require LLCs to file biennial or annual reports or have annual fees.
Does Arizona have an annual franchise tax?
Arizona does not require you to pay any franchise or privilege tax for LLCs.
Do I need a business operating agreement for my LLC in Arizona?
Arizona does not require an LLC to submit an operating agreement to the state.
However, having one on file helps a company avoid future misunderstandings within the organization. It can be oral or written as long as it’s in the company’s files.
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