How to Start an LLC in Arizona: Fees, Filings and Annual Requirements

Articles of Organization cost $50.00 with regular processing or $85.00 with expedited processing. The Commission's FAQ says Articles of Organization can be filed online for $85. Optional accelerated review costs extra: $100 (next day), $200 (same day) or $400 (2-hour).

File Articles of Organization with the Arizona Corporation Commission (ACC), online through the Arizona Business Center (ABC) or on paper. The articles must give the LLC's name, principal address, statutory agent, and whether it is member-managed or manager-managed, with the names and addresses of members (or of managers and 20%-or-more members). The ACC estimates regular processing at typically 14–16 days and expedited processing at typically 3–5 days.

The name must contain "limited liability company" or "limited company" or the abbreviation "L.L.C.", "LLC", "L.C." or "LC", and must be distinguishable from other names on record. It may not contain "association," "corporation" or "incorporated," and banking or trust words are restricted. A name reservation is optional; it holds a name for 120 days and is not renewable. The Application to Reserve LLC Name costs $10.00 (regular) or $45.00 (expedited).

Arizona calls the registered agent a "statutory agent." Every LLC must designate and maintain one with a place of business or residence in Arizona. It may be an individual Arizona resident (at least 18, per the ACC), a domestic corporation or LLC, or a foreign corporation or LLC authorized to do business in Arizona. The agent must accept the appointment. To change the agent, file an LLC Statement of Change of Principal Address or Statutory Agent ($5.00 regular, $40.00 expedited). Failing to keep a statutory agent can lead to administrative dissolution.

The ACC states: "No, LLCs are not required to file annual reports. Only corporations are required to file annual reports."

Within 60 days after the ACC files the articles of organization, a notice of the filing must be published in a newspaper of general circulation in the county of the statutory agent's street address for three consecutive publications, unless the statutory agent's street address is in a county with more than 800,000 people, in which case the ACC posts the information in its online database instead. The ACC says it will tell you by letter after approval if publication is required. Filing the newspaper's affidavit of publication with the ACC is optional.

The ACC says the operating agreement is not filed with the ACC, but the LLC is required to keep a copy in its company records. Under Arizona law an operating agreement can be oral, implied, written, or a combination.

The ACC does not register or recognize DBAs. Trade names are registered with the Arizona Secretary of State on its form; the trade name must be distinguishable from names already on record. The ACC says a trade name is active for 5 years. The ACC also notes that DBA names can be recorded with the Maricopa County Recorder's Office.

Arizona's sales tax is the transaction privilege tax (TPT). A business selling products or services subject to TPT will likely need a TPT license from the Arizona Department of Revenue, plus a TPT or business license from each city where it operates. The state license costs $12 per location; a separate city license fee may apply.

An out-of-state LLC files a Foreign Registration Statement with the ACC. The fee is $150.00 (regular) or $185.00 (expedited).

To end an LLC, file Articles of Termination with the ACC: $35.00 (regular) or $70.00 (expedited). The fee schedule also lists a Notice of Winding Up at $10.00 (regular) or $45.00 (expedited). The ACC says LLCs that terminate voluntarily are permanently terminated and cannot be reinstated.