How to start an LLC in Arizona: Your 2025 step-by-step guide

If you want to start a business in Arizona, you have many decisions to make. One of the most important is how you plan to structure your business. You can register as a sole proprietorship, partnership, corporation, or LLC. Each option comes with its own legal, tax, and operational implications, so it's important to choose the structure that best fits your goals.

A limited liability company, or LLC, is a popular business structure choice for small businesses as it offers some significant advantages. 

Jump to:

• Why choose an LLC in Arizona?
• New business data in Arizona in 2025
• 5 steps for creating an LLC in Arizona
• Step 1: Choose a name for your Arizona LLC
• Step 2: Choose a registered agent in Arizona
• Step 3: Complete the Articles of Organization form and file your Arizona LLC
• Step 4: Get an Employer Identification Number (EIN)
• Step 5: Ongoing compliance and required filings
• Types of LLCs to consider in Arizona
• Costs of setting up an LLC in Arizona
• LLC Taxes in Arizona
• Frequently asked questions

Why choose an LLC in Arizona?

The LLC business structure combines the liability protection of a corporation with the flexibility and tax benefits of a partnership. LLC members can shield personal assets while benefiting from pass-through taxation, avoiding corporate income taxes at the state level. Establishing an LLC is generally straightforward and requires less paperwork than other structures. 

LLC formation requires preparation and careful execution to ensure the business operates legally. Read this guide to learn the steps involved in starting an LLC in Arizona. Explore the costs, tax considerations, how accounting software can support your business, and other important information to launch your venture on the right foot.

New business data in Arizona in 2025

Arizona's economy has experienced significant growth, adding over 100,000 jobs over the past year. Key industries driving this expansion include semiconductor manufacturing, with over $100 billion in private investment. Taiwan Semiconductor Manufacturing Company alone invested $65 billion in Arizona. Other key sectors include construction, technology, and healthcare. 

The state is known for having a business-friendly environment, affordable costs, and streamlined regulations, making it a magnet for entrepreneurs. The Arizona Corporation Commission processed over 212,000 filings in 2024, including 118,015 LLCs. 

These figures demonstrate Arizona's strong appeal to entrepreneurs and its growing business ecosystem.

5 steps for creating an LLC in Arizona 

Starting a new business is an exciting opportunity for professional and financial growth, but it requires careful planning. Before launching, you'll need to choose a business name and designate a statutory agent. It's also essential to file the necessary paperwork and obtain an EIN. Follow the steps below to set your business up for success. 

Step 1: Choose a name for your Arizona LLC

The first step is to choose a name for your business. When naming your LLC, it's essential to adhere to Arizona’s guidelines to ensure your desired name is both compliant and distinguishable from existing entities.

Arizona LLC naming rules

Be sure to follow Arizona’s state requirements when choosing a name for your LLC.

Your business name must:

Be distinctive

Arizona law mandates that each LLC name must be unique and not easily confused with existing business names registered in the state. Submitting Articles of Organization with a name identical to or too similar to another entity may lead to the rejection of your application.

Spaces between words and different styling do not make a name unique. Symbols, punctuation, and special characters are also ignored when checking name availability. For example, "Arizona Now" is considered the same as "ArizonaNow," “Arizona Now!” and “Arizona: Now.”

Have required designators

Your LLC's name must include one of the following designations:

• "Limited Liability Company"
• "Limited Company"
• Abbreviations such as "L.L.C.," "L.C.," "LLC," or "LC"

Avoid prohibited terms

Certain words are restricted to prevent misrepresentation or confusion. Your LLC's name cannot include:

• "Association"
• "Corporation"
• "Incorporated"
• Any abbreviations of these terms
• Any words like "Federal," "Treasury," or "Bureau" that may be confused with a government agency 

Note about financial terms: If you wish to use terms related to financial institutions, such as "Bank," "Credit Union," "Trust," etc., prior written approval from the Arizona Department of Financial Institutions is required. 

Reflect professional specialization, if applicable

If your business offers professional services—such as those provided by doctors, lawyers, accountants, architects, or therapists—Arizona requires the name to reflect this specialization. The name must contain:

• "Professional Limited Liability Company"
• Abbreviations like "P.L.L.C.," "P.L.C.," "PLLC," or "PLC"

For a full list of naming requirements, visit the Arizona Corporation Commission's naming requirement page.

Check for name availability

Research your desired business name using the online name search tool. Since subtle variations in business names may not be sufficient to make them legally distinct, focus on your preferred core name when searching for name availability. 

Reserve your LLC name

Arizona doesn't require you to reserve your business name prior to submitting the Articles of Organization, the paperwork that will legally establish your business. However, doing so gives you time to gather and submit your LLC formation documents without worrying about another business taking your preferred name. 

You can submit your name reservation form online; it’s $10 for regular processing and $45 for expedited processing. Submitting this form and fee reserves your business entity name for 120 days.

You may also mail in your name reservation by submitting an Application to Reserve Limited Liability Company Name form. See these instructions for details. 

Step 2: Choose a statutory agent in Arizona

When forming an LLC in Arizona, you must designate a statutory agent (known as a "registered agent" in other states). This agent serves as the official contact for legal documents.

Who needs a statutory agent?

• All Arizona LLCs must appoint a statutory agent.
• Foreign LLCs registering in Arizona must also designate a statutory agent, even if they have an agent in their home state.

Who can be a statutory agent?

• Individual: An adult (at least 18 years old) who is a permanent, full-time resident of Arizona with a physical street address in the state (P.O. boxes are not acceptable). The individual must be available during normal business hours to receive legal documents on behalf of the LLC.
• Business entity: An Arizona corporation or LLC or a foreign corporation or LLC authorized to transact business in Arizona.

An LLC cannot act as its own statutory agent; it must appoint someone apart from itself. The appointed statutory agent must accept the appointment in writing. This can be done by completing and submitting the Statutory Agent Acceptance form (Form M002) provided by the Arizona Corporation Commission.

Choosing a statutory agent service

You can also choose a professional statutory agent service. There are many statutory agent services available in Arizona. If you’re thinking about hiring a professional provider, here are some tips for finding the right one.

Research and compare

Be sure to research different providers and compare factors such as:

• Cost: Fees typically start around $50 per year.
• Reputation: Choose a reputable company with a proven track record.
• Customer support: Ensure they provide excellent customer service and support.
• Knowledge: Select a provider with a strong understanding of Arizona-specific compliance requirements to ensure your business stays in good standing.
• Coverage: For businesses operating in multiple states, choose a provider that offers services across all the states where you plan to operate.

Consider bundled services

If you're using a company formation service or an attorney to set up your LLC, they may offer statutory agent services as part of a package.

Step 3: Complete the Articles of Organization form and file your Arizona LLC

Once you’ve decided on your name and statutory agent, you must next fill out the Articles of Organization form.

What is an Articles of Organization?

An Articles of Organization is a legal document submitted to the Arizona Corporation Commission to officially form an LLC in Arizona. It includes details such as your business name, address, statutory agent information, and management structure. 

Filing the Articles of Organization formally establishes your LLC's legal presence within the state. The standard filing fee is $50. Expedited processing is available for an additional $35. 

You have two options for submitting the Articles of Organization:

Option 1: Online filing

The ACC provides an online portal for electronic submissions. This platform allows you to conveniently complete the LLC registration process from any device. 

Option 2: Mail-in filing

If you prefer to file by mail, you can download and complete the Articles of Organization form. Mail the completed form along with the required payment to:

Arizona Corporation Commission - Examination Section

1300 W. Washington St.

Phoenix, Arizona 85007

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

Processing times are posted each Monday on the ACC website. 

What to include in your LLC's Articles of Organization form

When completing the Articles of Organization, you'll need to provide:

• Entity type, if it is an LLC or a Professional Limited Liability Company (PLLC)
• The name of your LLC
• Description of professional services if forming a PLLC
• Statutory agent information
• The address of the LLC in Arizona (must be a street address, not a P.O. box)
• Management structure, whether you will be member-managed or manager-managed
• Your signature

See this page for complete instructions. 

Publication requirement

In Arizona, LLCs must adhere to specific publication requirements regarding the Articles of Organization and the adoption of an operating agreement. LLCs located within Maricopa and Pima counties are exempt from this requirement.

• Timeline: Within 60 days of filing the Articles of Organization, an LLC with a known place of business outside Maricopa and Pima counties must publish a Notice of LLC Formation in an approved newspaper.
• Newspaper selection: The notice must be published in a newspaper of general circulation in the county where the LLC’s known place of business is located. The newspaper must be approved by the Arizona Corporation Commission. A list of approved newspapers is available on the ACC website.
• Publication duration: The notice must run once a week for three consecutive weeks in the selected newspaper.
• Affidavit of publication: After the publication period, the newspaper will provide an Affidavit of Publication as proof that the notice has been published. While Arizona law does not require this affidavit to be filed with the Arizona Corporation Commission, LLC owners should keep it for their records.
• Consequences of non-compliance: Failure to meet the publication requirement may impact the LLC’s standing with the state, potentially leading to administrative penalties. Ensuring compliance helps maintain the LLC’s good legal status in Arizona.

If you are not an Arizona resident:

If your LLC was formed in another state (a "foreign LLC") and you wish to conduct business in Arizona, you must register with the ACC. The steps include:

1. Complete the Foreign Registration Statement.
2. Obtain a Certificate of Good Standing (or equivalent document) from your LLC's home state, dated within 60 days of submission.
3. Appoint a statutory agent located in Arizona.
4. Submit the completed application with a $150 filing fee.

For details, refer to the Foreign Registration Statement Instructions.

Step 4: Get an Employer Identification Number (EIN)

You’ll likely need an Employer Identification Number (EIN) from the Internal Revenue Service to form an LLC in Arizona. An EIN is a nine-digit number that identifies a business for tax purposes, similar to a Social Security Number for your company.

According to the IRS, you need an EIN if any of the following apply:

1. You have employees.
2. Your business operates as a corporation or partnership.
3. You file employment, excise, or alcohol, tobacco, and firearms tax returns.
4. You withhold taxes on income, other than wages, paid to a non-resident alien.
5. You have a Keogh plan (a tax-deferred pension plan).
6. You are involved with certain types of organizations, including trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers' cooperatives, or plan administrators.

Single-member LLC considerations

If you are a single-member LLC, you may not be required to obtain an EIN. However, getting one is still a smart idea, as your business needs might change over time, and obtaining an EIN is free.

An EIN becomes mandatory if your LLC elects to be taxed as a corporation, hires employees, or files excise or employment tax returns.

Having an EIN also simplifies opening a business bank account and protects your personal Social Security Number, reducing the risk of identity theft.

Requesting an EIN

You can request an EIN by mail or phone, but the fastest method is completing the process online on the IRS website. After obtaining an EIN, use accounting software to track business expenses and ensure your company’s finances remain separate from your personal finances. 

Step 5: Ongoing compliance and required filings

Creating your LLC is only the beginning. Staying compliant with state and federal regulations is essential to keeping your business in good standing. While Arizona does not require an annual report, LLCs must meet other obligations.

• Beneficial Ownership Information Report
• Filing requirement: Under the Corporate Transparency Act, most LLCs are required to submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN).
• Purpose: This report identifies individuals who own or control the LLC, aiding in the prevention of financial crimes.
• Who needs to file: All LLCs formed on or after January 1, 2025, must file within 30 days of formation. LLCs formed before this date have until December 31, 2025, to comply.
• How to file: Reports are submitted online through the FinCEN reporting portal.
• Fees: There is no filing fee.
• Business licenses and permits
• Requirement: Depending on your LLC's location and industry, you may need certain licenses or permits.
• Examples: Professional services, food and beverage establishments, construction firms, and other regulated industries may have special licensing requirements.
• Verification: Consult the Arizona Commerce Authority and your local city or town offices for guidance.
• State tax registration
• Requirement: If your LLC will collect state taxes, such as sales tax, you must register with the Arizona Department of Revenue (ADOR).
• Tax determination: Use the Department's resources to identify applicable taxes for your business.
• Registration methods: Register online through the ADOR website.
• Purchase insurance
• Requirement: Depending on your business activities, specific insurance coverage may be necessary.
• Examples: Commercial auto insurance, liability insurance, and workers’ compensation insurance are common types.
• Information: The U.S. Small Business Administration website has a list of typical business insurance types.

Types of LLCs to consider in Arizona 

When setting up your LLC in Arizona, it's important to understand the different LLC types available to determine which best suits your business needs.

Single-member LLC

A single-member LLC is owned by one individual or entity, providing liability protection while allowing for simplified management and taxation. In Arizona, a single-member LLC can be treated as a disregarded entity for federal income tax purposes, meaning the business activities are reported on the owner's personal tax return.

Multi-member LLC

A multi-member LLC consists of two or more members who share ownership. This structure offers flexibility in management and profit distribution among members. Multi-member LLCs are typically treated as partnerships for tax purposes, unless they elect to be taxed as a corporation.

Professional LLC (PLLC)

Designed for licensed professionals such as doctors, lawyers, or accountants, a PLLC allows individuals to offer professional services under an LLC structure. In Arizona, a PLLC is specifically for services that legally require a licensed individual to render them. It's advisable to consult with the appropriate Arizona licensing boards to determine eligibility and requirements.

Manager-managed LLC

In a manager-managed LLC, members appoint one or more managers to handle the daily operations, allowing non-managing members to act as passive investors.

Member-managed LLC

A member-managed LLC involves all members actively participating in the management and decision-making processes of the company. This is the default management structure for LLCs in Arizona unless otherwise specified in the Articles of Organization.

Costs of setting up an LLC in Arizona

Setting up a limited liability company in Arizona involves several fees: 

• A $50 one-time fee to file your Articles of Organization
• Registered agent service fees, if applicable, which typically start at $50 a year
• Publication fee, which varies based on a newspaper’s rates

Other costs you may have to cover include late fees if you file any required paperwork after its due date and license or permit fees if your business operates in a regulated industry.

Open an Arizona LLC business account

One of the biggest benefits of forming an LLC is shielding your personal assets if your business is sued. However, this protection can be lost if you mix personal and business assets.

To maintain this protection, open a separate bank account for your LLC. This ensures your business finances remain distinct from your personal ones.

What you'll need 

When opening a business bank account, you’ll typically need:

• Your EIN 
• Articles of Organization
• (Possibly) an operating agreement 
• Personal identification

Out-of-state residents should consider choosing a bank with a presence in the state.

After opening your bank account, use QuickBooks accounting software to track and manage your finances. 

LLC taxes in Arizona

Establishing an Arizona LLC involves understanding various tax classifications and obligations at both the federal and state levels. 

Federal tax classification

Arizona LLCs can choose their federal tax classification, which influences their taxation at the state level:

• Single-member LLCs: By default, treated as disregarded entities, with income and expenses reported on the owner's personal federal tax return.
• Multi-member LLCs: Default to partnership taxation, requiring the filing of Form 1065 with the IRS.
• Election as a corporation: LLCs can opt to be taxed as a C corporation or S corporation by filing the appropriate forms with the IRS.

State income tax

Arizona imposes state income tax on personal income, affecting LLC members differently based on the entity's tax classification:

Pass-through entities

For LLCs taxed as sole proprietorships, partnerships, or S corporations, profits pass through to members' personal tax returns. Members are then subject to Arizona's state income tax rates on their share of the income. In 2025, the state income tax rate is a flat 2.5%.

C corporations

LLCs electing to be taxed as C corporations are subject to Arizona's corporate income tax. As of 2025, the rate is 4.9%. 

Transaction Privilege Tax (TPT)

In Arizona, businesses are subject to a Transaction Privilege Tax (TPT), commonly referred to as a sales tax:

• Requirement: LLCs selling tangible personal property or certain taxable services must obtain a TPT license and collect tax from customers.
• Registration: Businesses must register with the Arizona Department of Revenue to obtain the necessary licenses.

Employment taxes

LLCs in Arizona with employees have distinct tax responsibilities:

• Withholding tax: Employers must withhold state income tax from employee wages and remit them to the Arizona Department of Revenue.
• Unemployment insurance tax: Employers are required to pay unemployment insurance taxes, which fund unemployment benefits for workers. In 2025, Arizona's unemployment insurance tax rates will range from 0.04% to 9.72%, with a taxable wage base of $8,000.

Business personal property tax

While Arizona does not levy a state-level business personal property tax, local counties may assess taxes on business property:

• Assessment: Businesses may be required to report and pay taxes on tangible personal property used in the business, such as equipment and furniture.
• Local variations: Tax rates and regulations can vary by county. Consult local county assessors for specific information.

Arizona-related resources

• Arizona Chamber of Commerce & Industry: The Arizona Chamber of Commerce & Industry works to strengthen Arizona’s competitive edge in the global economy by advocating for free-market policies that drive economic growth and benefit all Arizonans.
• Arizona Small Business Development Center (AZSBDC): AZSBDC offers free counseling, training, and help with accessing capital. With over 10 locations across the state, AZSBDC offers personalized support for everything from creating a business plan to understanding local regulations.
• Arizona Business One Stop: Business One Stop is an online portal for planning, creating, and running your business.
• Arizona Commerce Authority (ACA): The ACA offers programs and incentives to support business growth, including assistance with manufacturing, research and development tax credits, and workforce development initiatives.
• Arizona Corporation Commission: The commission oversees business filings, including LLC formations, corporation registrations, and trade name filings. Entrepreneurs can use the ACC’s online system to efficiently submit, manage, and track business filings.
• Arizona Department of Revenue: This department administers state tax laws, collects taxes, and provides guidance on compliance for businesses and individuals in Arizona.

Federal-related resources 

• Small Business Administration (SBA): The SBA supports small businesses through various loan programs, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.
• Internal Revenue Service (IRS): The IRS provides essential information for LLCs, including tax classifications, employer identification numbers (EINs), and filing requirements. Its Small Business and Self-Employed Tax Center offers guidance on tax obligations specific to LLCs.
• U.S. Patent and Trademark Office (USPTO): For businesses looking to protect their intellectual property, the USPTO provides resources on how to apply for patents and register trademarks, which can be essential for safeguarding your unique products or services.
• U.S. Department of Labor (DOL): The DOL's website offers information on federal labor laws, workplace safety regulations, and employee benefits that LLC owners need to consider when hiring staff.

Disclaimer: 

This content is for information purposes only and information provided should not be considered legal, accounting or tax advice or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.