1. Arizona LLC Overview

Arizona stands out among US states for its minimal ongoing compliance burden. For local business owners, forming an Arizona LLC provides significant benefits:

  • No annual report — You don't have to file yearly paperwork or pay a recurring state fee
  • Low formation cost — Just $50 to file Articles of Organization
  • Low flat income tax — A very competitive 2.5% flat personal income tax rate
  • Exemptions from publication — Businesses in the major metro areas (Phoenix/Tucson) skip the publication hassle

2. Arizona LLC Requirements

  • Name must contain "Limited Liability Company," "LLC," "L.L.C.," or "L.C."
  • Name must be unique in the Arizona Corporation Commission (A.C.C.) database
  • Appoint a Statutory Agent (registered agent) with an Arizona physical address
  • File Articles of Organization with the A.C.C. ($50)
  • Fulfill publication requirements (only required in specific counties)

3. Arizona LLC Costs and Fees (2026)

Cost Item Amount Notes
Articles of Organization$50One-time state filing fee
Annual Report$0None required
Publication Fee$0–$150+Varies; $0 for Maricopa/Pima counties
Statutory Agent$50–$150/yearRequired AZ physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$1,000Recommended, not legally required

4. How to Start an Arizona LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company," "LLC," or "L.C.")
  2. 2 Appoint a Statutory Agent (registered agent) with an Arizona physical address
  3. 3 File Articles of Organization with the AZ Corporation Commission ($50)
  4. 4 Complete publication requirement if your business is in a county that requires it (Maricopa and Pima counties are exempt)
  5. 5 Obtain an EIN from the IRS (free at IRS.gov)
  6. 6 Draft an Operating Agreement (not legally required but strongly recommended)
  7. 7 Apply for a Transaction Privilege Tax (TPT) license if selling goods
  8. 8 Open a business bank account

5. Arizona Publication Requirement

Arizona has a publication requirement, but whether it applies to you depends on the county where your LLC's known place of business is located.

  • Exempt Counties: If your statutory agent's address is in Maricopa County (Phoenix area) or Pima County (Tucson area), the A.C.C. will automatically publish your notice on its website for free. You do not need to do anything else.
  • Other Counties: If you are in any other county, you must publish a Notice of LLC Formation in an A.C.C.-approved newspaper in that county for three consecutive runs. This must be done within 60 days of formation, and the cost varies by newspaper.

6. Arizona LLC Taxes (2026)

  • Arizona personal income tax — 2.5% flat rate on pass-through LLC profits
  • Federal income tax — Pass-through to members' personal returns
  • Self-employment tax — 15.3% on net earnings
  • Transaction Privilege Tax (TPT) — Arizona's version of sales tax; rate is 5.6% state, plus city/county taxes
  • No franchise tax — Arizona does not impose a franchise or margin tax on LLCs

7. Best For / Not Best For

Best For

  • Entrepreneurs living and operating in Arizona
  • Founders wanting low compliance costs (no annual report)
  • Businesses operating in Maricopa or Pima counties (no publication requirement)
  • Owners seeking a low, flat state income tax rate (2.5%)

Not Best For

  • Out-of-state owners without Arizona nexus
  • Businesses in rural counties that want to avoid publication costs
  • Founders seeking a state with absolutely zero income tax