Creating an Arizona LLC is one of the smartest moves you can make for your company. It not only offers members liability protection but may also provide a transparent management process that lessens the possibility of disagreements.
Working with our legal team, we took it upon ourselves to research and summarize the Arizona LLC requirements and costs.
If you're considering starting an LLC in Arizona, here's everything you need to know regarding Arizona LLC fees.
Quick Summary
- The Arizona LLC cost is $50 for regular filings and $85 for expedited filing, which covers submitting Articles of Organization and the Arizona LLC operating agreement.
- All LLCs in Arizona are required to file a publication of notice for three weeks in a local newspaper.
- Arizona LLCs are subject to transaction privilege tax paid to the state revenue office.
How Much Does an LLC Cost in Arizona?
An LLC in Arizona costs $50 for regular processing time and $85 for expedited processing time. This amount covers the Articles of Organization filing fee.
However, there are other filing costs that you may incur, as we'll discuss in subsequent sections.
Arizona LLC Filing Fee
Arizona Articles of Organization and an $85 filing fee must be submitted to the Arizona Corporations Commission to incorporate your Arizona LLC formally.
If you submit your application online, the ACC will approve it within 1-2 days of acquiring it. If you apply by mail, standard processing might take 4-5 weeks and costs $50.
The Articles of Organization contain essential characteristics about your company, including your company name, primary address, statutory agent information (known as registered agent in other jurisdictions), and whether members or a professional manager manages your LLC.
You can do business in Arizona once the Arizona Corporate Commission (ACC) has processed and approved your LLC incorporation paperwork.
Arizona Registered Agent Service Fee
Every Arizona LLC must appoint a statutory agent or a registered agent. That agent must formally accept the position by signing an Arizona Statutory Agent Acceptance Form.
Your statutory agent is accountable for receiving all legal notifications, communications, and documents on the LLC's behalf and notifying the business entity of their arrival [1].
An individual LLC member may serve as the registered agent on behalf of the LLC without charge; the Arizona LLC itself is not permitted to operate in this role.
Given the significant tasks and duties of your statutory agent, it would be best to utilize a professional one, in which case you will pay an average yearly price of $125, depending on the Arizona statutory agent service you collaborate with.
Arizona Transaction Privilege Tax (TPT) License
LLCs that do commercial activities in Arizona must apply for a TPT license, which costs $12 per place of business plus additional fees for each city where the LLC conducts business [2].
You must submit the Arizona JT-1 Application to the Department of Revenue to apply for this license. Arizona's transaction privilege tax rates fluctuate by county and kind of enterprise.
You should also submit an application for local business licenses based on where your company is located. Local business licensing requirements and costs vary by city and county. For instance, Tucson charges $25 annually for a standard business license.
Other LLC Filing Costs
Here are all the other filing costs of incorporating an LLC in Arizona.
1. Business Name Reservation
The first step is to see if your desired business name is available in Arizona. After that, you can proceed with the name reservation.
Arizona charges $10 for standard processing and $45 for expedited processing to secure a company name (the $45 expedited cost is automatically applied to online submissions.)
It's not necessary to reserve your Arizona company name in advance, but doing so ensures that your desired name will be accessible when you register your LLC in Arizona.
Fill out an Application to Reserve Limited Liability Company Name and submit it to the Arizona Corporation Commission to book an LLC name in Arizona for a maximum of 120 days.
2. Arizona DBA Name
Any name that a firm uses that isn't its legal name is referred to as a Doing Business As (DBA) or a trade name. You will need to submit a trade name application, which costs $10, to the Arizona Secretary of State website.
Before submitting your papers, check the Arizona Secretary of State's website to determine if your trade name is already registered by someone else.
The processing time for trade name registrations is 3 weeks, valid for 5 years. Another party might use your trade name or trademark if your submission is not renewed on time.
3. Arizona Certificate of Good Standing
Arizona Department charges $10 for a Certificate of Good Standing at a standard processing rate. But if you want it sooner, you can pay $45 for expedited shipping.
A Certificate of Good Standing is a legal document that attests to your LLC's existence and timely state filings.
Typically, a Certificate of Good Standing is needed for the following:
- Get financing and business loans
- Conduct commercial activities outside of Arizona
- Get commercial insurance
- Establish a business bank account
Filing a paper Records Request Form or applying online through eCorp will get you an Arizona Certificate of Good Standing.
4. Certified Document Copies
Arizona charges $15 plus $0.50 per page for a certified copy of LLC paperwork. You can get a certified copy by mailing or visiting the Arizona Corporation Commission with a Records Request Form.
When registering a commercial bank account or filing to run a business in another state, you might want a certified copy of a specific document, such as your operating agreement and articles of organization.
Also, some LLCs maintain certified copies of their Articles of Organization and any revisions alongside their corporate documents for management purposes.
5. Arizona LLC Publication Requirement
Few states, including Arizona, require newly formed LLCs to issue a legal notice in a daily newspaper.
After your LLC in Arizona is authorized, the state will send you the Notification of LLC Creation form, which you must fill out for the local newspaper. You have 60 days from your LLC's formation to complete this.
The local newspaper will give you an Affidavit of Publication when your publishing notice has appeared there for three weeks in a row, attesting to the completion of the statutory notice period.
Based on the newspaper, publishing costs range from $60 to $300 for this notice to appear in 3 back-to-back editions.
But, if your statutory agent is based in Pima or Maricopa Counties, you can avoid paying for LLC publishing. This is because the ACC in these counties will publish a notice on your company's behalf.
6. Arizona Annual Reports
LLC costs less in Arizona because annual reports are not state-mandated. However, if you want to keep your Arizona LLC in good standing, you can submit a yearly report, sometimes referred to as a statement of information.
You can file online at the Arizona Corporations Commission's website for a $45 filing fee.
7. Premium Business Insurance
If your Arizona LLC hires staff, you must get workers' compensation insurance from a private insurer.
The insurance fees will change depending on the kind of job your workers are doing.
For instance, the typical workers' compensation rate for masons is over $8 for $100 of covered income but only about $0.15 per $100 of payroll for medical professionals.
8. Arizona Taxes
All Arizona LLCs are, by default, pass-through organizations; only the members' income taxes need to be filed by the company.
But, if you've chosen to tax your LLC as a corporation, it will be responsible for paying Arizona's 4.9% corporate income tax.
But, for most LLCs, you will only be responsible for paying the state's income tax, which ranges from 2.59% to 4.5%, depending on your tax rate.
9. Attorney Services
Sometimes LLC owners choose to consult an attorney regarding the LLC creation procedure. While attorney services are not inexpensive, they may offer peace of mind, expert filing assistance, and crucial business counsel.
Some lawyers give free consultations for a specific time (often 25 to 50 minutes), but they bill by the hour after that.
Business lawyers often bill between $150 and $350 per hour. Some companies will charge a fixed fee of $500 to $2,000 to start an LLC in Arizona.
Pricing variances are based on the lawyer's location and level of expertise.
These are considerably high costs to start an LLC, that's why we recommend using an LLC business provider instead.
Arizona Foreign LLC Registration Fees
Arizona charges $150 ($185 for accelerated processing) for the registration of a foreign LLC.
This filing cost is required to get the Arizona Foreign Registration Statement, which enables an out-of-state LLC to engage in commerce in Arizona.
You must register as a foreign LLC if your LLC wishes to conduct business in Arizona but was incorporated in another jurisdiction.
Depending on the entity, you will also need to register for a TPT license and may require extra business permits.
FAQs
How Much is the Filing Fee For an Arizona LLC?
The filing fee for an Arizona LLC is $85 for expedited and $50 for regular processing time. This one-time fee covers the articles of organization filed with the ACC.
Is Arizona A Good State For an LLC?
Yes, Arizona is a good state for an LLC. Arizona boasts rapid approval timeframes, friendly staff at the Arizona Corporation Commission if you have issues, and neither a general state company licensing requirement nor an annual report charge.
What Are the Penalties For Late Filing Fees Payment in Arizona?
The penalties for late filing fees payment in Arizona include sanctions, administrative LLC dissolution, and higher interest charges.
Do You Need Professional Help with Your Arizona LLC?
Forming an LLC can be complicated because of the intense paperwork filing.
However, using any of these best LLC services in Arizona can make the entire process more straightforward and less stressful.
These authentic websites can guide you through the procedure step-by-step, offering professional advice along the way to make sure that each stage is completed hassle-free.
References:
- https://nprra.org/registered-agent-faqs/
- https://azdor.gov/transaction-privilege-tax/tpt-license
