Arizona LLC Taxes & Fees 2026: Complete Cost Guide
Quick Answer
Forming an LLC in Arizona costs only $50 for the Articles of Organization—one of the lowest formation fees in the country. Arizona has no annual report requirement, making ongoing compliance minimal. However, Arizona requires publication of your Articles of Organization in an approved newspaper for 3 consecutive weeks (typically $50-$300 depending on county).
Key Takeaways
- LLC formation filing fee: $50 (one of the lowest)
- No annual report required
- Publication requirement within 60 days of formation
- Publication costs vary by county ($50-$300)
- No franchise tax for LLCs
- State income tax: 4.9% for businesses
| Item | Cost/Details | Notes |
|---|---|---|
| Articles of Organization | $50 | One-time formation fee |
| Publication | $50-$300 | Varies by county newspaper |
| Annual Report | $0 | No annual report required! |
| Registered Agent | $0-$200/year | Free if you self-serve |
| Foreign LLC Registration | $150 | For out-of-state LLCs |
Formation Costs
Forming an LLC in Arizona requires filing Articles of Organization with the Arizona Corporation Commission. Arizona has one of the lowest formation fees in the country.
State Filing Fees
| Filing | Cost | Notes |
|---|---|---|
| Articles of Organization | $50 | Required, one-time |
| Expedited Processing | $35 | Optional, same-day |
Low Cost: At $50, Arizona has one of the lowest LLC formation fees in the United States. Only a few states (like Michigan at $50, Colorado at $50) match this rate.
Processing Times
- Online filing: 1-2 business days (standard)
- Expedited: Same-day with $35 additional fee
Publication Requirement
Arizona has a unique requirement: you must publish your Articles of Organization in an approved newspaper for 3 consecutive weeks after formation.
Publication Requirements
- Deadline: Within 60 days of LLC approval
- Duration: 3 consecutive weeks
- Where: Approved newspaper in your LLC's county
- Cost: $50-$300 (varies by county and newspaper)
- After Publication: File Affidavit of Publication with ACC
Publication Costs by County
| County | Typical Cost |
|---|---|
| Maricopa (Phoenix) | $50-$150 |
| Pima (Tucson) | $75-$150 |
| Rural Counties | $100-$300 |
Annual Requirements (None!)
No Annual Report Required!
Arizona is one of the few states that does not require an annual report for domestic LLCs. Once you've formed your LLC and completed the publication requirement, your ongoing compliance is minimal—just maintain a valid statutory agent.
Ongoing Requirements
- Maintain statutory agent: Must keep a valid Arizona registered agent at all times
- Keep records: Maintain required business records
- File taxes: Pay applicable Arizona taxes
- No annual report: No state filing or fee required annually
Arizona LLC Taxes
No Franchise Tax
Arizona does not impose a franchise tax on LLCs. Your only required state payments are income taxes on profits.
Arizona Income Tax
- Individual rate: 2.5% flat rate
- Corporate/business rate: 4.9%
- Pass-through LLCs: Profits pass to members who pay at individual rate
Sales Tax (Transaction Privilege Tax)
- State rate: 5.6%
- Local additions: Vary by city (can add 2-4%)
- Combined rate: Typically 7-10% depending on location
- Register with Arizona Department of Revenue
Total Cost Breakdown
First Year Costs
| Expense | Minimum | Typical |
|---|---|---|
| Articles of Organization | $50 | $50 |
| Publication | $50 | $100-$150 |
| Registered Agent | $0 | $100 |
| First Year Total | $100 | $250-$300 |
Annual Ongoing Costs
| Expense | Minimum | Typical |
|---|---|---|
| Annual Report | $0 | $0 |
| Registered Agent | $0 | $100 |
| Annual Total | $0 | $100 |
Excellent Value: After the one-time publication cost, Arizona is one of the cheapest states to maintain an LLC. With no annual report and no franchise tax, your only ongoing cost is a registered agent (if you use a service).
Cost-Saving Tips
1. Shop for Publication Rates
Publication costs vary significantly by newspaper. Shop around for the lowest rate in your county. Smaller legal newspapers often charge less than major dailies.
2. File Online
The Arizona Corporation Commission's online system is fast and efficient. Processing is typically 1-2 business days.
3. Be Your Own Statutory Agent
If you're an Arizona resident with a physical address and consistent availability, serving as your own agent saves $50-$200/year.
4. Complete Publication on Time
While there's no direct penalty for late publication, failing to publish can cause legal issues. Complete it within 60 days to avoid complications.
Frequently Asked Questions
What is the total cost to form an LLC in Arizona?
Does Arizona require an annual report for LLCs?
What is Arizona's publication requirement?
What happens if I don't publish my Arizona LLC?
Do Arizona LLCs pay state income tax?
Is Arizona a good state to form an LLC?
Official Source
For the most up-to-date information, always verify requirements with the official Arizona Secretary of State website:
https://azcc.gov/divisions/corporationsImportant Disclaimer
This article is for informational purposes only and does not constitute legal advice. LLC requirements, fees, and deadlines change frequently. Always verify current requirements with your state's Secretary of State office before making business decisions.
Related Arizona LLC Articles
Arizona Registered Agent Requirements 2026
Complete guide to AZ registered agent rules.
Can I Be My Own Registered Agent in Arizona?
Pros and cons of serving as your own agent.
Arizona Foreign LLC Registration
Registering an out-of-state LLC in Arizona.
Arizona LLC Publication Requirement
Understanding the newspaper publication requirement.
Complete Arizona LLC Compliance Guide
View all Arizona LLC requirements, fees, and deadlines in one place.
View AZ State Guide