Perhaps you are hoping to form an Arizona LLC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Arizona.
On this page, you’ll learn about the following:
Arizona LLC Cost of Filing
Here are the costs involved in forming an LLC in Arizona.
Cost of Filing Formation Certificates
The Arizona Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Arizona Secretary of State.
Arizona Domestic LLC
- Online Filing costs $50.
- Expedited Processing Fee costs $85.
- By mail: Fill out the application form, and send it to the Arizona Corporate Commission, Examination Section 1300 W, Washington Street, Phoenix, Arizona 85007.
Arizona Foreign LLC
- Registration filing costs $150.
- Expedited Processing Fee costs $185.
- By mail: Fill out the application form, and send it out to the Arizona Corporate Commission, Examination Section 1300 W, Washington Street, Phoenix, Arizona 85007.
Visit the Official Arizona Government website to check the Official Fee Schedule of Limited Liability Companies (LLCs) in Arizona.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Arizona LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Arizona, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
| |
 | $299 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Arizona Department of Revenue for regulatory boards or agencies requiring licensing.
Business Taxes
Like every other business entity, Arizona LLCs are also subject to State tax and filing obligations.
Income Tax
The Arizona State Corporate Income Tax varies between 2.5%- 4.54% (depending on the amount of income earned). Visit the official Arizona Revenue Department website to learn more about CIT.
Sales Tax
Sales tax in Arizona is also known as Transaction Privilege Tax. Taxes vary depending upon the region. Businesses with an annual tax liability of $500 or more are required to file and pay electronically. Visit the Arizona Department of Revenue website to learn more about sales tax or transaction privilege tax.
Self-Employment Tax
The Arizona Federal Self-employment tax is 15.3%.
Withholding Tax
The State Employer Tax (withholding tax) is 2.9%. Visit the Secretary of State of Arizona Revenue website to get details about the tax payable.
Property Tax
Acquiring property for businesses in Arizona attracts a meager property tax at the rate of 0.62%. Visit the Secretary of State website to learn more about Arizona Property Tax.
Government Property Lease Excise Tax
The GPLET is paid on the basis of Size and Use of Property. The Secretary of State website provides detailed information about GPLET.
Liquor Luxury Tax
This tax depends on the type of Liquor. Visit the official Secretary of State website to understand Liquor Tax.
Tobacco Luxury Tax
The combined tax rate on cigarettes is $0.10. The Secretary of State website provides information about the Tobacco Luxury tax.
Comparison with the Neighboring States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Arizona, read the table below:
| States | Arizona | California | Nevada | Utah | New Mexico |
| Online filing fee | $50 | $70 | $425 | $70 | $50 |
| LLC Annual fee | $0 | $800 + $20 | $350 | $20 | $0 |
| Name reservation fee | $45 for online (including $35 for expedited processing) | $20 | $25 | $22 | $20 |
| Sales Tax | 4.9% | 7.75-9.5% | 4.6-8.25% | 5% | 15.3% |
When it comes to establishing an LLC in Arizona, it would not cost you a hefty amount. LLCs are the most preferred set-ups for small businesses in Arizona given their flexible nature of the ownership and inexpensive setup and maintenance costs. It has a vibrant business climate and is one of the fastest-growing states in the United States.
Other Costs
- Arizona Name Reservation: $45 for online filings or $10 by mail
- Doing Business As (DBA): $10 for online filing or $31.20 if filing by mail
- Certified Document Copies: $15 + $0.50 per page.
- Certificate of Good Standing: $45
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Arizona LLC: $35
How Much Does It Cost to Maintain an LLC in Arizona
To maintain an LLC in Arizona you have to pay Sales tax of 4.9%, Income tax (2.5% to 4.54%), State employer tax of 2.9% and federal taxes.
When starting a business, it is important to consider the type of business structure that will best suit your needs. One of the most popular among entrepreneurs is Limited Liability Company (LLC) because it offers protection and flexibility. However, maintaining an LLC in Arizona comes with costs that business owners should be aware of.
The first cost associated with maintaining an LLC in Arizona is the initial fee when registering the business with the state. This fee varies depending on the type of business, but for an LLC, it can range from $50 to $300. This fee is a one-time expense but is essential to register the company with the state.
Another cost associated with maintaining an LLC is the annual report fee, which is required by the state of Arizona. This cost varies depending on the LLC’s revenue and ranges from $0 to $65. This fee covers the LLC’s filing and administrative costs and ensures that the state has up-to-date information regarding the company’s status. Missing the annual report deadline can result in additional fees and late penalties, so business owners should be aware of the due date.
Entrepreneurs starting an LLC in Arizona should also consider the legal fees associated with setting up the company. Depending on the complexity of the company’s structure, legal fees to set up an LLC can range from a few hundred dollars to a couple of thousand dollars. Although it can be expensive, getting legal help when setting up an LLC can save business owners money in the long run by protecting them from liability.
In addition to the fees discussed above, an LLC in Arizona might need to cover additional costs, such as business licenses, permits, or insurance. Business licenses and permits required in Arizona vary depending on the type of business and location. This cost varies, but entrepreneurs generally should expect to pay between a few hundred dollars and a few thousand dollars. Additionally, businesses operating in Arizona require specific insurance like general liability insurance, which can cost around $1,200 per year.
Another cost associated with maintaining an LLC is paying the appropriate taxes depending on the company’s revenue, employee count, and location. Taxes estimated based on the company’s circumstance, and therefore can fluctuate, entrepreneurs estimate yearly average federal income tax upkeep costs at a few thousand dollars. There are several tax regulations around changing locations and hiding wages made during employment. Ensure that Arizona’s tax department and the IRS handles all company tax-related requirements and mandates effectively.
In conclusion, starting and running an LLC in Arizona comes with several costs. Initial registration and annual filing fees with State government departments, procedure costs associated with appropriately maintaining registration mandated by law, and legal counsel are prominent on this list of expenses. These costs are essential to operating a business within Arizona and are mandatory. These costs protect the business and make sure the company complies with both Arizona and federal law. Planning and budgeting for every maintenance aspect and working with a financial advisor will help business owners avoid financial shocks. Being aware of the costs involved in maintaining an LLC isn’t stealing time away from your success but providing realism in budgeting and a clear path through launching your Limited Liability Company.
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
In Conclusion
The cost of Arizona is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.
Hola, quiero abrir una LLC en Arizona u otro estado y quiero hacerlo con un agente, que me recomiendan que me salga bien de precio la constitucion y los gastos anuales?