By Jake Lawson, LLC Formation Strategist
Arizona is hands-down one of the best states for LLC formation, and I’ll tell you why in dollars and cents. After helping over 180 entrepreneurs form Arizona LLCs, I can tell you the real costs—not just the state filing fee everyone talks about.
The good news: Arizona keeps it simple and affordable. No annual reports, reasonable fees, and fast online processing.
The not-so-good news: That newspaper publication requirement can catch you off guard if you’re not in Phoenix or Tucson metro areas.
Let me break down exactly what you’ll pay and how to minimize costs without cutting corners.
Arizona LLC Costs: The Real Numbers
Minimum to get started: $50 (just the state filing fee) Realistic first-year cost: $175-$350 (including essentials) Premium setup: $400-$600 (full-service with expedited processing)
Here’s every cost you might encounter:
| What You Need | Cost Range | Jake’s Take |
| Articles of Organization | $50-$85 | Standard vs. expedited (worth the extra $35 for speed) |
| Statutory Agent | $0-$150/year | Free if you do it yourself, $125-$150 for professional service |
| Operating Agreement | $0 | Free templates available, custom ones cost $300-800 |
| EIN (Tax ID) | $0 | Always free through IRS (ignore the scammers) |
| Newspaper Publication | $0-$250 | Depends on your county—big gotcha for many |
| Business Licenses | $0-$500+ | Varies wildly by industry |
| Annual State Fees | $0 | Arizona doesn’t charge annual reports (love this!) |
The Arizona Filing Fee: Standard vs. Expedited
Arizona gives you two filing options:
Standard Processing ($50):
- 14-16 business days for approval
- Budget-friendly option
- Fine if you’re not in a rush
Expedited Processing ($85):
- 1 business day if filed online
- 3-5 business days if filed by mail
- Worth the extra $35 for most businesses
My recommendation: Spring for expedited processing. The extra $35 saves you 2-3 weeks of waiting, and when you’re excited to start your business, that time matters.
The Statutory Agent Decision: Free vs. Professional
Every Arizona LLC needs a statutory agent (Arizona’s term for registered agent)—someone with an Arizona address who can accept legal documents during business hours.
Option 1: Be Your Own Agent (Free)
- Save $125-$150/year
- Your name and address become public record
- Must be available during business hours
- Need an Arizona street address (no P.O. boxes)
Option 2: Professional Statutory Agent Service ($125-$150/year)
- Privacy protection (your address stays private)
- Professional document handling
- Mail forwarding and scanning
- Compliance reminders
When I recommend professional service:
- You don’t live in Arizona but want to form there
- You value privacy and don’t want your home address public
- You travel frequently or work irregular hours
- You want professional handling of legal documents
My top pick: Northwest Registered Agent at $125/year. Reliable, responsive, and they don’t constantly try to upsell you.
The Newspaper Publication Trap (And How to Avoid It)
Here’s where Arizona gets tricky. Most states don’t require newspaper publication, but Arizona does—with a major exception that can save you $60-$250.
The rule: LLCs must publish a notice in a newspaper for 3 consecutive publications within 60 days of formation.
The exception: If your statutory agent is located in Maricopa County (Phoenix area) or Pima County (Tucson area), the Arizona Corporation Commission publishes the notice on their website for free.
Cost breakdown by county:
- Maricopa/Pima Counties: $0 (published on AZCC website)
- Rural counties: $60-$120 typically
- Other metro areas: $150-$250+
Strategic tip: If you’re hiring a statutory agent service, choose one located in Phoenix or Tucson to avoid the publication requirement entirely. This alone can save you $100-$200.
Operating Agreement: Essential but Free
Arizona doesn’t legally require an Operating Agreement, but you absolutely need one for:
- Bank account opening (most banks ask for it)
- Legal protection (proves you’re running a real business)
- Ownership clarity (especially important for multi-member LLCs)
Cost options:
- Free templates: Available online (including solid ones)
- Attorney-drafted: $300-$800 for basic agreements
- Complex custom agreements: $1,000-$2,500+
For most single-member LLCs, a quality free template works perfectly. Multi-member LLCs should consider at least a basic attorney review.
The EIN Number: Free Through IRS, Expensive Through Scammers
Your Employer Identification Number (EIN) is required for:
- Opening business bank accounts
- Filing tax returns
- Hiring employees
- Most business activities
The right way: Apply directly at IRS.gov (free, takes 10 minutes)
The expensive way: Pay $50-$300 to middleman services
I’ve seen entrepreneurs pay $200 for something that’s literally free. Don’t be that person.
Arizona’s Big Advantage: No Annual Reports
Unlike most states, Arizona doesn’t require annual reports or annual fees. Once your LLC is formed, you’re done with state maintenance requirements.
What this means:
- No annual paperwork to file
- No annual fees to pay
- One less thing to forget
- Lower long-term costs
This is a huge advantage. States like California charge $800/year, New York charges $200/year, but Arizona charges $0/year.
Business Licenses: The Variable Cost
Arizona doesn’t require a general business license, but depending on your business type and location, you might need:
State-level licenses:
- Professional licenses (contractors, real estate, healthcare)
- Industry-specific permits (food service, childcare)
- Cost range: $50-$500+
Local licenses:
- City business permits
- County permits
- Zoning approvals
- Cost range: $25-$300+
Transaction Privilege Tax (TPT) License:
- Required if you’re selling products or taxable services
- Usually free to register
- Ongoing tax obligations based on revenue
Real-World Cost Scenarios
Scenario 1: Solo Consultant (Minimal Costs)
- Articles of Organization (expedited): $85
- Statutory agent (self): $0
- Operating Agreement (template): $0
- EIN: $0
- Business licenses: $0
- Total first year: $85
Scenario 2: E-commerce Business (Typical)
- Articles of Organization (expedited): $85
- Professional statutory agent: $125
- Operating Agreement (template): $0
- EIN: $0
- TPT license: $0
- Publication (avoided with Phoenix agent): $0
- Total first year: $210
Scenario 3: Professional Services (Higher End)
- Articles of Organization (expedited): $85
- Professional statutory agent: $125
- Attorney-drafted Operating Agreement: $500
- Professional license: $300
- EIN: $0
- Total first year: $1,010
Money-Saving Strategies
Year 1 optimization:
- File expedited online ($85 vs. $50 standard—worth it for speed)
- Choose a Phoenix/Tucson-based statutory agent (avoids publication costs)
- Use a quality free Operating Agreement template initially
- Get your EIN directly from the IRS
- Research license requirements before paying for unnecessary permits
Long-term savings:
- No annual state fees (unlike most states)
- Simple compliance requirements
- Fast online processing for any amendments
Tax Considerations: What Arizona LLCs Pay
Arizona LLCs are “pass-through” entities for tax purposes:
- LLC doesn’t pay corporate income tax
- Profits/losses pass through to owners’ personal returns
- Arizona personal income tax rates: 2.59% to 4.5%
Additional tax obligations:
- Transaction Privilege Tax (if selling products/services)
- Payroll taxes (if you have employees)
- Self-employment tax (if you’re active in the business)
Accountant costs: $300-$900/year depending on complexity.
Formation Service vs. DIY: Cost Analysis
DIY Route (Minimum $85):
- File Articles yourself online
- Be your own statutory agent
- Use free Operating Agreement template
- Get EIN directly from IRS
Total first-year cost: $85 (assuming Phoenix/Tucson agent address)
Professional Service Route ($200-$400):
- Service handles filing and setup
- Statutory agent included (usually first year free)
- Operating Agreement provided
- EIN obtained for you
My recommendation: For single-member LLCs, DIY is fine if you’re comfortable with basic paperwork. For multi-member LLCs or complex situations, professional help is worth the cost.
Services I trust:
- Northwest Registered Agent: $39 + state fee, excellent service
- ZenBusiness: Good value with solid support
- LegalZoom: More expensive but comprehensive
Arizona vs. Other Popular States
Arizona advantages:
- No annual reports ($0/year vs. $800 in California)
- Fast processing (1 day expedited vs. weeks in some states)
- Reasonable filing fees ($85 vs. $300+ in some states)
- Business-friendly regulations
Arizona considerations:
- Newspaper publication requirement (avoidable with strategy)
- Transaction Privilege Tax complexity
- Hot weather (okay, that’s not a business cost, but still)
Timeline and Planning
Formation timeline:
- Day 1: File Articles of Organization online (expedited)
- Day 2: Receive approval from Arizona Corporation Commission
- Week 1: Get EIN from IRS
- Week 2: Open business bank account
- Month 1: Complete any required business license applications
Total setup time: 2-4 weeks for everything
Common Arizona LLC Mistakes
Mistake #1: Choosing the wrong county for statutory agent Pick Phoenix or Tucson area to avoid publication costs.
Mistake #2: Paying for EIN services The IRS provides EINs for free. Don’t pay middlemen.
Mistake #3: Assuming you need expensive licenses Research your specific industry requirements—many service businesses need zero special licenses.
Mistake #4: Not taking advantage of no annual reports Arizona’s lack of annual requirements is a huge advantage—don’t complicate it by forming in other states.
The Bottom Line on Arizona LLC Costs
Arizona makes LLC formation affordable and straightforward. The $85 filing fee (expedited) gets you fast approval, and strategic statutory agent selection can save you hundreds in publication costs.
Key takeaways:
- Budget $200-$350 for your first year (realistic range)
- Choose Phoenix/Tucson area statutory agents to avoid publication
- Take advantage of expedited processing ($35 extra for 2-3 weeks time savings)
- Arizona’s no annual reports policy saves money long-term
Questions about Arizona LLC costs? The Arizona Corporation Commission actually provides decent customer service, and their online system works well. Arizona removes most of the friction from LLC formation.
Ready to get started? File online at the AZCC website, choose expedited processing, pick a Phoenix-area statutory agent, and you’ll have your Arizona LLC approved tomorrow.
Jake Lawson has guided over 1,200 entrepreneurs through LLC formation across all 50 states. His practical approach helps founders navigate state-specific requirements and optimize costs without cutting corners. Connect with Jake at llciyo.com for more business formation insights.