Starting an LLC in Arizona (2025): Simplified for Entrepreneurs

Forming a Limited Liability Company (LLC) in Arizona is a practical choice for entrepreneurs who want liability protection, pass-through taxation, and operational flexibility. With minimal state-level compliance and no annual reporting requirement, Arizona offers a business-friendly environment for startups and small companies alike.

This guide outlines everything you need to know about starting an LLC in Arizona, including legal procedures, timelines, the cost to start an LLC in Arizona, and how to stay compliant after formation.

Is starting an LLC in Arizona the right decision?

Arizona remains super appealing for LLC formation, owing largely to a simple framework and low costs alongside pretty favorable taxation policies. Arizona doesn't require LLCs to file annual reports and imposes no franchise tax on entity income earned therein yearly.

Starting an LLC in Arizona provides:

• Protection of personal assets from business liabilities
• Streamlined registration through the Arizona Corporation Commission
• Flexible management and ownership structure
• No annual reporting requirements
• No state-level franchise tax for LLCs

Benefits of starting an LLC in Arizona

Legal Requirements to Form an Arizona LLC

Before moving forward, it is essential to understand the basic requirements for establishing an LLC in Arizona:

• Choose a distinguishable business name
• Appoint a statutory agent with a physical address in Arizona
• File Articles of Organization with the Arizona Corporation Commission (ACC)
• Fulfill publication requirements (unless exempt)
• Apply for an Employer Identification Number (EIN)
• Draft an internal Operating Agreement (optional but recommended)

Each of these requirements plays a critical role in forming and maintaining your LLC legally and effectively.

Simple Steps to Starting an LLC in Arizona

Below are the exact steps to starting an LLC in Arizona, updated according to 2025 regulations.

Step 1: Choose a Business Name

The name of your LLC must comply with the Arizona naming rules. It must be:

• Unique and distinguishable from other registered businesses
• Not misleading or implying government affiliation
• Including “Limited Liability Company,” “L.L.C.,” or “LLC” as a suffix

Use the ACC’s Business Name Search tool to confirm name availability. If desired, you can reserve a name for 120 days by filing a Name Reservation application and paying a small fee.

Step 2: Designate a Statutory Agent

A statutory agent (also known as a registered agent) is required for every Arizona LLC. This individual or business entity will receive legal and compliance documents on your behalf.

Requirements:

• Must be an Arizona resident or a company authorized to do business in Arizona
• Must have a physical Arizona address (no P.O. Boxes)
• Must consent to serve as your agent

While you can serve as your own statutory agent, many choose professional registered agent services for reliability and privacy.

Step 3: File Articles of Organization

This is the core legal document used to officially form your LLC in Arizona. You can file the Articles of Organization online via the Arizona Corporation Commission or submit a paper form.

Information required includes:

• LLC name
• Statutory agent details
• Whether the LLC will be member-managed or manager-managed
• Known place of business in Arizona

7-Step Guide to Starting an LLC in Arizona

Step 4: Publish a Notice of LLC Formation

Unlike most other states, Arizona has a publication requirement for LLCs.

You must publish a notice of formation in an approved newspaper for three consecutive weeks if your LLC is based outside of Maricopa or Pima County. The newspaper must be in the same county where your business is located.

This step must be completed within 60 days of formation. Once done, the newspaper will provide you with an affidavit of publication.

If your LLC is located in Maricopa or Pima County, this requirement is waived; the ACC handles publication electronically.

Step 5: Create an Operating Agreement

While not required by state law, an Operating Agreement is a critical internal document. It defines how your LLC is structured and managed. It typically includes:

• Ownership percentages
• Voting rights and decision-making procedures
• Profit and loss distribution
• Rules for adding or removing members
• Managerial duties and obligations

An Operating Agreement is especially important for multi-member LLCs or those planning to raise external investment.

Step 6: Obtain an EIN from the IRS

Most LLCs will need to obtain an Employer Identification Number (EIN) from the IRS. This is essential for:

• Opening a business bank account
• Hiring employees
• Filing federal taxes

You can apply online via the IRS website. The application is free and processed immediately.

Step 7: Register for State Taxes (If Applicable)

Arizona does not levy a franchise tax on LLCs, but you may still need to register for other state taxes depending on your business activities.

Common registrations include:

• Transaction Privilege Tax (TPT) if you are selling goods or taxable services
• Employer Withholding Tax if you hire employees
• Unemployment Insurance Tax

Total Cost to Start an LLC in Arizona

Understanding the cost to start an LLC in Arizona allows for better financial planning. Below is a breakdown of expected startup expenses in 2025:

Most LLCs can be formed rather quickly in Arizona with a total cost ranging wildly from $100 to upwards of $400, depending on the usage of third-party services.

Note: The costs listed above are for reference purposes only and may vary based on individual circumstances and service providers. For a complete breakdown of all expenses involved in starting your LLC in Arizona, please contact us directly. 

Types of costs to form an LLC in Arizona

Maintaining Compliance After LLC Formation

Although Arizona does not require annual reports for LLCs, your business must still maintain good standing through the following:

• Maintaining a valid statutory agent with up-to-date contact information
• Renewing or updating state tax registrations when needed
• Complying with federal and local tax obligations
• Following your Operating Agreement and keeping it current

Additionally, any changes to your LLC’s name, address, or management structure must be updated with the Arizona Corporation Commission via an amendment filing.

Final Thoughts

Starting an LLC in Arizona is an easy and affordable way to structure your business. With no annual reporting requirement and low formation costs, the state is unique for its low maintenance, simplified business structure that also protects you legally.

Arizona continues to be a great jurisdiction for business owners looking for a safe and compliant U.S. business structure at a cost-effective price in 2025. To streamline the process and keep you fully compliant, you can engage with a trusted service provider such as One IBC USA, which offers professional LLC formation and ongoing support that fits your business purpose.