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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.
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 |
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 | $39 + 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
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.
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.
The first cost that comes to mind when thinking about maintaining an LLC in Arizona is the initial filing fee. When forming an LLC in Arizona, business owners are required to file Articles of Organization with the Arizona Corporation Commission. The fee for this filing is reasonable, making it an attainable cost for most business owners. While this upfront cost may seem like a hurdle, it ensures that your business is legally recognized and protected by the state.
In addition to the initial filing fee, there are also yearly fees associated with maintaining an LLC in Arizona. Business owners are required to file an annual report with the Arizona Corporation Commission and pay a yearly fee to keep their LLC in good standing. This cost, while not exorbitant, is something that business owners need to budget for to ensure that their LLC remains compliant with Arizona state laws.
Another cost to consider when maintaining an LLC in Arizona is the cost of registered agent services. In Arizona, LLCs are required to have a registered agent who is responsible for receiving legal documents on behalf of the business. While business owners can serve as their own registered agent, many choose to hire a professional registered agent service to handle this responsibility. This comes with an additional cost, but it provides peace of mind knowing that important legal documents will be handled efficiently and professionally.
While the costs of maintaining an LLC in Arizona may seem daunting at first, it’s important to view them as an investment in the success and protection of your business. By properly maintaining your LLC and staying compliant with Arizona state laws, you are setting your business up for long-term success.
In conclusion, the costs associated with maintaining an LLC in Arizona are a necessary part of running a successful business. While there may be initial and ongoing fees to consider, investing in the proper maintenance of your LLC is crucial in protecting your business and ensuring its success. As business owners, it is important to budget for these costs and view them as an investment in the future of your business. By staying compliant with Arizona state laws and properly maintaining your LLC, you are setting your business up for long-term success and growth.
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.