Between the $50 filing fee, the absence of any annual report, and a flat income tax rate near the bottom of the national range, Arizona ranks among the cheaper states to both form and maintain an LLC in. The catch, and it's a real one, is a decades-old newspaper publication requirement that some founders never have to think about and others can't avoid. This is the 2026 process, quirk included.
1. Which business structure fits you?
It pays to understand the structure options before any paperwork goes in.
- Sole proprietorship. Legally, you and the business are indistinguishable, and no filing is needed to get started. The tradeoff is that every business debt is also a personal one.
- Partnership. Carries the same liability exposure as a sole proprietorship, just distributed across two or more owners instead of resting on one person.
- LLC. What most small businesses in Arizona choose, since it draws a line between your personal assets and the business's debts or lawsuits.
- Corporation, S-corp or C-corp. More formal, more paperwork, and generally reserved for businesses bringing on investors or multiple shareholders.
See our guide on choosing a business structure for a fuller comparison.
Unlike most states, it's the Arizona Corporation Commission, not the Secretary of State, that handles LLC and corporation filings statewide. Sole proprietorships and general partnerships have no filing to make there.
2. Register your business
Forming an LLC
An Arizona LLC comes into existence once you file Articles of Organization with the Corporation Commission, for a $50 fee. Processing generally runs 5 to 7 business days.
There's a wrinkle most states don't have: within 60 days of filing, Arizona law requires most LLCs to publish a Notice of Formation in an approved newspaper for three straight weeks, then submit proof of publication. If your registered agent's address falls in Maricopa or Pima County, the state takes care of this automatically, at no extra charge. File anywhere else in Arizona and you're on the hook for it yourself, typically $50 to $300, with a deadline that's easy to miss if you're not watching for it.
Arizona calls the role a statutory agent rather than a registered agent, but it works the same way: a physical in-state address, reachable during business hours. You can serve in that role yourself or pay someone else to do it.
State law doesn't require an operating agreement, but that doesn't mean skip it, particularly if there's more than one member on the LLC. It's what settles decision-making authority and profit splits before those become points of conflict.
Sole proprietorships and DBAs
The Corporation Commission isn't where sole proprietorships file anything. Trading under a name other than your own means registering that trade name with the Arizona Secretary of State instead, a completely separate office from the one handling entity filings.
3. Get an EIN
An Employer Identification Number costs nothing and comes straight from the IRS, usually in under 15 minutes online. Whether you're opening a bank account, bringing on staff, or filing most business tax forms, you'll need one, single-member LLC with no employees included.
4. Check licenses and permits
There's no single general business license covering all of Arizona. What applies to you hinges on industry and city: professional licensing for regulated fields, a Transaction Privilege Tax (TPT) license from the Department of Revenue if you're selling taxable goods or services, and whatever local licenses your city requires on top. Our guides on professional licensing by industry and zoning laws for home businesses go into more depth.
5. Understand Arizona taxes
Arizona runs a flat 2.5% personal income tax, one of the lowest flat rates anywhere in the country. There's no separate franchise tax sitting on top for pass-through LLCs; members simply pay that flat rate on their share of the profits. Electing corporate tax treatment instead brings a 4.9% corporate income tax rate, with a $50 minimum.
What Arizona calls sales tax is technically a Transaction Privilege Tax, levied on the seller rather than the buyer, though the distinction rarely matters at checkout. The state rate is 5.6%, and once counties and cities pile their own rates on top, combined effective rates commonly land somewhere between 7.5% and 11.2%.
6. Stay compliant
This section stays short because Arizona is one of the few states that skips an annual report for LLCs entirely. Your main job going forward is keeping the statutory agent information current with the Corporation Commission and filing an amendment whenever something material about the LLC changes.
Arizona business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC) | $50 |
| Publication requirement (outside Maricopa/Pima) | $50 to $300 |
| Annual report | Not required |
| Statutory agent service (optional) | $100 to $200/year |
| EIN | Free (IRS) |
| State income tax | 2.5% flat |
| State sales tax (TPT) | 5.6% + local, up to ~11.2% |
Frequently asked questions
What's the newspaper publication requirement in Arizona?
Most LLCs must publish a Notice of Formation in an approved newspaper for three consecutive weeks within 60 days of filing, though this is handled automatically at no cost if your registered agent is in Maricopa or Pima County.
How much does it cost to form an LLC in Arizona?
$50 for Articles of Organization, one of the cheapest in the country.
Does Arizona require an annual report for LLCs?
No, Arizona is one of a small number of states with no LLC annual report requirement at all.
What's the personal income tax rate in Arizona?
A flat 2.5%, one of the lowest flat rates in the country.
What's Arizona's sales tax actually called?
Transaction Privilege Tax (TPT), a tax on the seller rather than the buyer, with a 5.6% state base plus local additions.
Fees and rates above come from the Arizona Corporation Commission and Department of Revenue as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to an Arizona-licensed attorney or CPA about your specific situation.