How Much Does It Cost to Form an LLC in Arizona? A Complete Fee Breakdown

Starting a new business in Arizona is an exciting venture, but understanding the financial requirements upfront is critical for proper planning. Whether you are opening a coffee shop in Phoenix or starting a tech consulting firm in Scottsdale, setting up a Limited Liability Company (LLC) establishes a legal boundary between your personal assets and your business liabilities. Under A.R.S. Title 29, the state imposes specific fees for formally registering your entity.

While forming an LLC is generally affordable in Arizona compared to states like California or New York, the base filing fee is only part of the equation. Hidden costs, such as local business licenses and registered agent services, can catch new entrepreneurs off guard. Working with a qualified business attorney found through our US Lawyer Directory can help you navigate these initial costs and ensure your company is set up in full compliance with state law without paying unnecessary fees.

Standard vs. Expedited ACC Filing Fees

In Arizona, the primary state agency responsible for business formation is the Arizona Corporation Commission, Phoenix (ACC). To officially create your LLC, you must file a document known as the Form L010, Arizona, Arizona Corporation Commission, Articles of Organization. The ACC offers different pricing tiers depending on how fast you want your documents processed.

Standard ACC Filing Fee

The standard state fee to file your Articles of Organization is $50. This fee is non-refundable, even if your application is rejected due to a name conflict or incomplete information. For many small business owners, this standard fee is the most cost-effective route, provided you are not in a rush to open business bank accounts or sign leases immediately.

Expedited and Same-Day Processing

If you need your LLC approved quickly, the ACC offers tiered expedited services. Upgrading to the standard Expedited Service adds $35 to your bill (making it $85 total). For urgent needs, the state offers Next-Day Service for an additional $100, Same-Day Service for an additional $200, and even a Two-Hour Mega-Expedited Service for an additional $400 premium. These faster options are highly beneficial if you need to lock in a specific contract immediately.

Statutory Agent Annual Costs

Arizona law requires every LLC to maintain a "Statutory Agent" (commonly called a Registered Agent in other states). This is an individual or business entity authorized to receive legal documents, such as a lawsuit summons, on behalf of your LLC. While you can act as your own statutory agent for free if you have a physical address in Arizona, many business owners opt to hire a professional service to maintain their privacy and ensure they never miss critical legal notices. A professional statutory agent service in Arizona typically costs between $50 and $150 per year.

DBA / Trade Name Registration Fees

Sometimes, your LLC's legal name does not match the public-facing brand name you want to use. If your LLC "Desert Sun Holdings LLC" wants to operate a bakery called "Cactus Cupcakes," you will need to register a Trade Name, also known as a Doing Business As (DBA). In Arizona, Trade Names are registered with the Arizona Secretary of State, Phoenix. The filing fee to register a Form Trade Name Registration, Arizona, Arizona Secretary of State, Trade Name Registration Application is $10, making it a very affordable way to protect your brand locally.

Hidden Costs: Local City Business Licenses

A common misconception is that the state LLC fee covers all required licensing. In reality, the City of Phoenix does not issue or require a general business license; instead, companies engaging in taxable activities (such as retail, restaurant operations, or leasing) must obtain a municipal Transaction Privilege Tax (TPT) license through the City of Phoenix, Phoenix for an annual fee of $50, whereas non-taxable service businesses pay nothing. In neighboring Scottsdale, businesses must obtain a Business Registration License under Scottsdale Revised Code Chapter 16, which charges a flat application fee of $12 for service providers or $50 for transient merchants, rather than fees based on employee count. Always check with your local city clerk's office, as operating without required municipal registrations can result in penalties.

Optional EIN Acquisition Costs

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. You need this number to open a business bank account, hire employees, or file specific taxes. It is completely free to obtain an EIN directly through the IRS website. However, if you use a third-party formation service or an attorney to handle your LLC setup, they may charge a convenience fee ranging from $50 to $100 to acquire the EIN on your behalf.

Summary of Arizona LLC Formation Costs

Frequently Asked Questions (FAQ)