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Form an LLC in Arizona — Everything You Need to Know

A practical, no-nonsense guide to forming a limited liability company in Arizona. We cover the actual requirements, real costs, and what nobody else tells you.

Arizona LLC at a Glance

State Filing Fee

$50

Processing Time

10 business days

Annual Report Fee

$0/yr

Franchise/Annual Tax

None

State Income Tax

Yes (2.5%)

Member Disclosure

Public

Arizona is Best For

Real estate investorsMulti-entity businesses (Series LLC)Budget-conscious owners

Privacy & Protection Features

  • Charging order is exclusive remedy — Creditors cannot force liquidation or take control of LLC assets. This is the strongest form of asset protection.

Series LLC Available in Arizona

Arizonaallows Series LLCs, which let you create multiple "series" or cells within a single LLC. Each series can have its own assets, members, and liabilities — all isolated from other series. This is particularly useful for real estate investors who want separate liability protection for each property without forming multiple LLCs. You file (and pay) once for the parent LLC, then create series internally through your operating agreement.

Arizona-Specific Requirements

  • !Must publish Articles of Organization in a newspaper within 60 days of filing
  • !File an affidavit of publication with the Arizona Corporation Commission

Requirements to Form an LLC in Arizona

Forming an LLC in Arizona requires a few key things. Here is what you actually need — no unnecessary legal jargon:

  • 1
    A unique business name. Your LLC name must be distinguishable from other entities registered in Arizona. It must include "LLC," "L.L.C.," or "Limited Liability Company."
  • 2
    A registered agent. Someone with a physical address in Arizona who can receive legal documents on behalf of your LLC. You can be your own agent if you have an address in the state, or you can use a service like Sedes.
  • 3
    Articles of Organization. This is the formation document you file with the Arizona Corporation Commission along with the $50 filing fee. It includes your LLC name, registered agent, management type, and purpose.
  • 4
    An operating agreement. While not legally required in Arizona, an operating agreement is essential. It defines how your LLC is managed, how profits are split, and what happens if things go sideways.
  • 5
    An EIN (Employer Identification Number). Your LLC's tax ID from the IRS. Free to obtain. Required for opening a business bank account, hiring employees, and filing taxes.

How Much Does It Cost?

ItemCostFrequency
State Filing Fee$50One-time
Expedited Processing (optional)$35One-time (5 days)
Registered Agent Service$49/yearAnnual (with Sedes)
EIN$0One-time (free from IRS)
First Year Total$99with Sedes RA
Annual Ongoing Cost$49/yearwith Sedes RA

State fees are paid directly to Arizona. Sedes's formation service starts at $0 + state fees.

How Long Does It Take?

Standard Processing

10 business days

State filing fee only ($50)

Expedited Processing

5 business days

Additional $35 fee

Pros & Cons of a Arizona LLC

Advantages

  • +Very low filing fee ($50)
  • +No annual report required
  • +Series LLC available
  • +Charging order is exclusive remedy (strong asset protection)
  • +Low flat state income tax rate (2.5%)

Disadvantages

  • -Members are disclosed in formation documents
  • -Must publish Articles of Organization in a newspaper within 60 days
  • -State income tax applies

What You Should Know About Arizona LLCs

Arizona requires publication of Articles of Organization in an approved newspaper within 60 days of filing.

Step-by-Step: How to Form an LLC in Arizona

1

Choose your LLC name

Search the Arizona Arizona Corporation Commission business name database to make sure your desired name is available. Your name must include "LLC" or "Limited Liability Company" and must be distinguishable from existing entities.

2

Appoint a registered agent

Your registered agent must have a physical street address in Arizona (no P.O. boxes). They receive legal documents and state correspondence on your behalf. Sedes includes registered agent service with all plans.

3

File your Articles of Organization

Submit your formation documents to the Arizona Arizona Corporation Commission along with the $50 filing fee. You can file online or by mail. With Sedes, we handle the filing for you.

4

Create an operating agreement

Draft an operating agreement that outlines ownership percentages, management structure, profit distribution, and what happens if a member leaves. Even single-member LLCs should have one — it reinforces your liability protection.

5

Get your EIN from the IRS

Apply for an Employer Identification Number (EIN) on the IRS website. It is free and takes about 5 minutes online. You need this to open a business bank account and file taxes.

6

Open a business bank account

This is critical. Keeping your personal and business finances separate is what makes your liability protection real. Without it, a court could 'pierce the corporate veil' and hold you personally liable.

7

Stay compliant

Arizona does not require an annual report, which reduces your compliance burden. Keep your registered agent current and file any required tax returns. Sedes's compliance calendar tracks all of this automatically.

Arizona Arizona Corporation Commission — Online Filing

File directly with the state or let Sedes handle it for you.

Visit Arizona Corporation Commission

Frequently Asked Questions

How much does it cost to form an LLC in Arizona?

The state filing fee is $50. Your estimated first-year total is $50 (state fees only). With Sedes, the formation service itself starts at $0 — you only pay the state fees.

How long does it take to get an LLC in Arizona?

Standard processing takes approximately 10 business days after filing. Expedited processing is available for $35 (5 business days). With Sedes, we prepare and submit your filing within hours, but the state processing time still applies.

Do I need a lawyer to form an LLC in Arizona?

No. Millions of LLCs are formed every year without a lawyer. For straightforward single-member or partnership LLCs, a formation service like Sedes can handle everything. If you have complex ownership structures, significant assets to protect, or need specific tax planning, consulting a business attorney is a good idea.

Can I form a Arizona LLC if I live in another state?

Yes. Anyone can form an LLC in Arizona regardless of where they live. However, if you plan to do business in your home state, you will need to register your Arizona LLC as a foreign LLC there, which means paying fees in both states. For most people, forming in their home state is simpler and cheaper.

What is the difference between member-managed and manager-managed?

In a member-managed LLC, all owners (members) participate in running the business and making decisions. In a manager-managed LLC, one or more designated managers handle operations while other members are passive investors. Most small LLCs choose member-managed.

Do I need an operating agreement?

Arizona does not legally require one, but you absolutely should have one. An operating agreement defines how your LLC works, protects your personal liability, and prevents disputes. Banks often require it to open a business account.

What is a Series LLC in Arizona?

A Series LLC lets you create multiple "series" within a single LLC, each with its own assets, members, and liabilities. This is popular with real estate investors who want each property in its own protected series. Arizona allows Series LLCs under its LLC statute.

Not sure if Arizona is the right state for your LLC?

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Ready to form your Arizona LLC?

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