Starting a limited liability company (LLC) in Arizona is a popular choice for entrepreneurs due to its business-friendly regulations and straightforward process. At the heart of this process lies the Arizona LLC filing fee, which is the primary cost associated with officially registering your business with the state.
This fee is a one-time payment made to the Arizona Corporation Commission (ACC) and covers the review and approval of your Articles of Organization, the foundational legal document for your LLC. The Articles of Organization formalize your business entity, listing key details like your LLC’s name, its purpose, and the designated statutory agent.
Without paying this fee, your application cannot be processed, and your LLC will not be legally formed. It’s a critical initial step that signals your intent to operate a legitimate business in Arizona.
While the filing fee itself is a modest amount compared to other states, it’s essential to understand that it represents only one component of the total startup cost. The simplicity and low cost of this initial fee make Arizona an attractive state for new business owners.
However, the total financial outlay can vary significantly depending on optional services you choose, such as expedited filing, as well as mandatory requirements like publication in certain counties. This fee, therefore, serves as the gateway to establishing your business, and a clear understanding of what it covers and what it doesn’t is crucial for effective financial planning.
Arizona Filing Fee in 2025
The Arizona LLC filing fee exists within a broader regulatory framework designed to ensure transparency and legal compliance for all businesses operating in the state. The fee is a mechanism for the Arizona Corporation Commission to fund its operations, which include reviewing legal documents, maintaining a public record of business entities, and overseeing corporate governance.
By paying the fee, you are contributing to the system that provides a legal foundation for your business, offering liability protection and a clear legal status. The context behind this fee is rooted in the principle that businesses should be publicly accountable and that a central state authority is needed to manage and regulate these entities.
The fee structure itself, which includes a standard and an expedited option, reflects a balance between accessibility and efficiency. The standard fee ensures that all entrepreneurs, regardless of their budget, can legally form a business. The expedited fee, on the other hand, acknowledges the need for speed in the modern business world, where getting a company off the ground quickly can be a competitive advantage.
This tiered system allows business owners to choose a processing time that aligns with their strategic and financial needs. This context of balancing regulation with entrepreneurial needs is a key part of the Arizona business environment.
Understanding Additional and Ongoing Costs
While the Articles of Organization filing fee is the most significant initial expense paid directly to the state, it’s vital to account for a number of other costs that arise during and after the formation process. A notable example is the publication requirement, which applies to some, but not all, Arizona LLCs. This requirement, which involves publishing a notice of your LLC’s formation in a local newspaper for three consecutive weeks, is a mandatory step in certain counties and can add a variable cost to your total. The cost of this publication depends entirely on the newspaper and county and is a crucial expense to budget for if your business falls under this requirement.
Beyond the one-time costs, there are also ongoing expenses to consider. One of the most significant is the cost of a statutory agent. While you can act as your own statutory agent for free, many business owners opt to hire a professional service to handle the receipt of legal and official documents. These services typically charge an annual fee, which can range from a modest amount to a few hundred dollars. This recurring cost is a key part of long-term financial planning for your LLC. Additionally, you may need to register for a Transaction Privilege Tax (TPT) license and secure local business licenses, both of which can have their own associated fees.
The Role of Optional and Unforeseen Expenses
Beyond the mandatory fees, several optional or unforeseen expenses can impact the total cost of forming and maintaining an Arizona LLC. For example, while it’s not required to file your operating agreement with the state, hiring an attorney to draft a customized one can incur significant legal fees. An operating agreement is a critical internal document that outlines the ownership and management structure of your LLC, and while it can be created for free using online templates, the cost of professional legal advice is a worthwhile consideration for many businesses.
Another optional expense is the name reservation fee. While you can simply file your Articles of Organization with your desired name, reserving a name beforehand can be a strategic move to prevent others from using it. This is a small, one-time fee that can provide peace of mind and protect your brand identity during the formation process. Unforeseen costs can also arise, such as fees for filing a Statement of Change if you need to update your LLC’s information or fees to reinstate a dissolved LLC if you fall out of compliance. These expenses highlight the importance of not only planning for the initial formation but also for the long-term maintenance and potential changes of your business.
Frequently Asked Questions
1. What is the standard filing fee for an Arizona LLC?
The standard filing fee to form an LLC in Arizona is $50. This is a one-time fee paid to the Arizona Corporation Commission when you submit your Articles of Organization. The fee covers the state’s processing of your formation documents and is a non-refundable charge. This fee is a single component of your total cost, so it’s essential to budget for other expenses.
2. Are there any annual report fees for an Arizona LLC?
No, Arizona does not require LLCs to file an annual report or pay a recurring annual fee. This is a significant advantage of forming an LLC in Arizona, as it reduces the ongoing compliance burden and costs for business owners.
3. What is the cost of the publication requirement?
The cost of the publication requirement in Arizona can range from $30 to over $300, depending on the newspaper and county. This mandatory step applies to LLCs whose statutory agent is not located in Maricopa or Pima counties.
4. What is the typical cost for a statutory agent service?
While you can be your own statutory agent for free, professional statutory agent services typically cost between $50 and $300 per year. These services provide a physical address in Arizona for receiving official legal and government documents.
5. What are the costs for an LLC to get an EIN?
Obtaining an Employer Identification Number (EIN) is completely free when you apply directly through the IRS website. Many third-party services charge for this, but it is a simple process that you can complete yourself at no cost.
6. Does Arizona charge a franchise tax?
No, Arizona does not impose a state-level franchise tax on LLCs. This is another key benefit that makes Arizona a cost-effective state for long-term business operations.
7. How much does it cost to form a foreign LLC in Arizona?
The filing fee for a foreign LLC to register in Arizona is $150. This is a separate and higher fee than the one for domestic LLCs and is a key cost to consider for out-of-state businesses.
8. What is the cost of a Certificate of Good Standing?
A Certificate of Good Standing, which verifies that your LLC is in compliance with state regulations, costs $10 for regular processing. This document is often required for banking, loans, or business expansion.
9. What is the cost to reserve an LLC name?
While not required, you can reserve a business name for up to 120 days for a non-refundable fee of $10 with regular processing. The expedited fee for this service is higher.
10. How much does it cost to reinstate a dissolved LLC?
If your LLC is administratively dissolved by the state, you may be required to pay a $100 reinstatement fee to bring it back into good standing.