Form an LLC in Arizona with Inc Authority for Free

Start your Arizona LLC in a quick and hassle-free manner using Inc Authority’s free LLC formation services. They have 32+ years of experience and have helped 250K+ businesses. Additionally, you will get a local registered agent for free for the first year.

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$0 + State filing fees

Free LLC formation service, including review and filing of paperwork with the Arizona Secretary of State.

One year of Arizona statutory agent service completely free of charge with both paid and free plans.

Add-on services like funding needs analysis, tax consultation, and S-corp election and filing services.

Things to Know Before Starting an LLC in Arizona

Limited Liability Companies offer a lot of benefits, but you should understand your compliance requirements if you want to stay in good standing with the state. Before you start an LLC in Arizona, understand the state’s LLC rules and regulations.

Let’s discuss some of the important requirements briefly.

  • Unlike most other states, the state of Arizona does not require LLCs to file annual reports or pay annual filing fees. 
  • Filing Arizona articles of organization costs merely $50 and any amendments thereafter cost only $25.
  • Arizona provides quick filing options which cost extra, from $25 extra for expedited filing to $400 for 2-hour filing.
  • If, for any reason, you lose your LLC status and are not in good standing, you’ll face a penalty of $100 for reinstatement.

You can compare the prices for forming and running an LLC with that of an S-Corp or Sole Proprietorship to choose the best business structure. Overall, Arizona is a business-friendly state with low tax rates and limited regulations.

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Find a Name for Your Business

Start the LLC formation process by finalizing a name for your company. This should be unique, memorable, and relevant to your business. It should also follow the state’s naming conventions, such as using the term LLC or its variations in the name.

To ensure your chosen business name is unique, you need to check the state database and see if any other business is using the same name. If not, you can use the name and if you find a match you’ll need to choose a different name for your LLC in Arizona.

Find a Name for Your Business
Reserve Your Business Name

Reserve Your Business Name

If you find that your chosen business name is available for use in Arizona, but you’re not yet ready to start the LLC formation process, you can consider reserving your name. This will ensure that no one else can register that name for a period of 120 days.

You need to file your application and pay a filing fee of $10 to reserve your business name. The state of Arizona provides expedited, same-day, next-day, and 2-hour processing options to choose from that can cost you $35 to $400 extra.

Appoint an Arizona Registered Agent

Every business needs a registered agent who is available during business hours at the registered address to receive all business correspondence and legal notices. The agent must have a local address in the state and can be an individual or a company.

While you can be your own registered agent, but that is not recommended as it will limit you to your office premises during weekdays. It’s better to hire a professional who can receive documents on your behalf and inform you of any upcoming deadlines.

Select the Type of LLC

Select the Type of LLC

If you intend to do business in Arizona and don’t have an established business in other states, you’ll likely need to form a domestic LLC. If, however, you want to expand your existing business to Arizona, you’ll need to form a foreign LLC in Arizona.

You will also need to decide whether your want to form a single-member LLC or a multi-member LLC in Arizona. Next, you need to decide whether you want a member-managed LLC or manager-managed LLC, depending on your requirements.

Draft an Arizona LLC Operating Agreement

Every business needs rules for how the company is to be managed and run, and an LLC operating agreement lays down those rules. It covers everything from how day-to-day decisions are to be taken to the ground rules for succession planning.

The operating agreement also details the roles and responsibilities of members and their respective shares of ownership. Make sure that your LLC operating agreement is as comprehensive as possible and covers all the governance guidelines.

File Your LLC Articles of Organization

This is the most important step in the process as this is where you officially register your business with the state. For that, you need to file your Articles of Organization with the Arizona Secretary of State and pay the required regular filing fee of $50.

You can submit your application online, via mail, via fax, or in person. If you want expedited processing, then those options are available at an extra cost. You need to pay a total of $85 to the Secretary of State’s office if you want expedited processing.

Get a Federal Employer Identification Number

An Employer Identification Number or EIN is a business’ identity, just like a Social Security Number is for individuals. This is what the government and the internal revenue service (IRS) use to identify and track a business for tax purposes.

EIN is required for several other business purposes as well. You will, for example, need an EIN to start a business bank account, get business funding from investors and banks, and hire employees and pay employer taxes, among other things.

Open a Separate Bank Account for Your Business

When you run a business, it’s very important to keep your business and personal finances separate. This ensures that your personal assets are protected from business debts and liabilities. It also helps you manage your business finances.

Opening a business bank account that is separate from your personal bank account is a great way to achieve this. Also, having a banking history with a bank helps build your credibility, which makes it easier for you to secure business loans and funding.

Acquire Business Licenses and Permits

Even after you officially register your business by filing your Arizona Articles of Organization, you can’t start operations until you meet some other requirements. This entails obtaining all necessary permits and licenses as required by the state.

The licenses and permits you’ll need will depend on your type of business and varies from state to state. You’ll need to obtain federal, state, and county licenses and permits. So, check the requirements for your business before you start your LLC.

Choose How You Want to be Taxed

The best part about forming an LLC in Arizona is that you can choose how you want your business to be taxed. It can be taxed as a Sole Proprietorship, Partnership, S-Corp, or C-Corporation, offering a lot of flexibility when it comes to business taxation.

By default, an LLC is considered a disregarded entity and the business profits pass to the LLC owners, who are then taxed on their personal incomes. Only LLCs that choose to be considered a Corporation for tax purposes, need to pay corporate income taxes.

File for a DBA (Optional)

Limited Liability Companies need to follow certain naming conventions when registering a business name. This often leads to long and complicated names, which include terms like “LLC”, “limited company”, “limited”, “limited liability company”, etc.

If you want a short and memorable name for conducting your day-to-day business, you can file a DBA (doing business as). This allows you to register a fictitious name that is good for branding purposes and easy for your customers to remember.

Get a Trademark (Optional)

A trademark is a great way of protecting your business name, logo, and other brand elements from being copied or used by other businesses in the state. If you have a slogan or brand tagline, you get get a trademark to protect those elements as well.

You can apply for trademarks on both federal and state levels, depending on your requirements. A federal trademark will prohibit businesses across the states to use your logo, slogan, name, or anything else that you have got a trademark for.

Create a Business Website (Optional)

Every business must have a website in this digital age. Your website is not only the most credible source of information for your business but also a way of generating leads for your business. So, make sure that you invest in an SEO-friendly website.

Start by securing a domain name that matches your business name or assumed name. You can use our partner GoDaddy’s web design and marketing services for registering a domain name, getting a hosting solution, and building a website.

Maintain Your Good Standing with the State

While the process of forming an LLC in Arizona ends here, maintaining that status is an ongoing process. You need to follow the rules and regulations set forth by the state of Arizona for LLCs and stay in compliance to keep your LLC status.

Some important compliance requirements include paying taxes on time and filing annual reports, if your LLC is taxed as a Corporation. You also need to renew your permits on time and meet all other compliance requirements for Arizona LLCs.

Why Should You Outsource LLC Formation Services?

While forming an LLC in Arizona is not a complicated process, it can still be overwhelming for first-timers. Outsourcing to a professional not only saves time, but also makes the process smooth and hassle-free. Here are some reasons why you should outsource.

Smooth Process

A professional would know exactly what they’re doing as this is their job. This means that they’ll know the process in and out and will only require minimal effort from your side—providing business information and documents.

100% Accuracy

When your paperwork is done by professionals, you can rest assured there will be no mistakes that can get your application rejected or delayed. Plus, you don’t need to deal with the complex paperwork yourself.

Quick Filing

Preparing, reviewing, and filing your application yourself can be a lengthy and overwhelming process. When you hire a professional, they can complete the process quickly and even file your application within the same day.

Form Your Arizona LLC Today

Personal Liability Protection

If your LLC in Arizona fails to pay its debts, the lenders can go after the business’s bank accounts and assets, but owners are protected. Lenders and investors can’t go after LLC members and their personal assets to recover the business debts and liabilities.

Similarly, LLC members are not held personally liable for the wrong-doings done by co-owners or employees, or any other business liabilities. As such, an LLC’s assets can be seized to settle a judgment if the LLC is charged with negligence or wrong-doing.

Flexible Tax Structure

As mentioned previously, Limited Liability Companies can choose how they want to be taxed. They can choose to be taxed as a Sole Proprietorship, Partnership, or an S-Corp. To get the federal S-Corp tax status you need to file Form 2553 of the IRS.

By default, an LLC will enjoy the benefits of pass-through taxation as it is considered a disregarded entity. This means that the business income will pass to the LLC members. The members then pay personal income taxes on their income from various sources.


It is much easier and cheaper to form an LLC in Arizona than to form a Corporation. You just need to pay $50 to file your Arizona Articles of Organization with the Secretary of State. And if you want expedited processing, you can get that for an extra $35.

A Limited Liability Company is also more affordable to run. You don’t need to file an annual report for your LLC in Arizona, so no annual filing fee requirements. The annual expenses of maintaining your LLC status are also quite reasonable.

Less Paperwork

As mentioned above, forming an LLC in Arizona is easier than forming a Corporation as it requires less paperwork. Given the more formal structure of a Corporation, the process of formation is more complex and requires more paperwork and documentation.

With LLCs, you don’t need to hold meetings of the board or take minutes, further reducing the paperwork required to run an LLC in Arizona. And, as mentioned above, LLCs don’t need to prepare and file annual reports in Arizona, so that’s also a relief.

Ease of Management

LLCs are easy to form and manage, as there aren’t a lot of ongoing compliance requirements or strict rules of governance. In fact, LLC members themselves decide how they want to run their business by crafting a detailed LLC Operating Agreement.

There’s no need to hold regular meetings or organize a vote for taking strategic decisions. The day-to-day decision-making process is simpler and follows the rules set forth in the operating agreement. LLCs are quite easy to run from a management standpoint.

Ownership Flexibility

LLCs in Arizona impose fewer restrictions on who can and can’t be a member. Unlike other business structures, like an S-Corporation, there are no strict restrictions on having non-residents as LLC members, which is a good thing for many entrepreneurs.

Also, the LLC members can decide how the succession planning process will work and how profits will be distributed among members. This offers a lot of flexibility to limited liability companies that is not available to many other business entities.

Ability to Hold Assets

An LLC in Arizona is considered a legal entity, separate from its owners or LLC members, This bestows certain legal rights to LLCs that other entities like Sole Proprietorships or Partnerships don’t enjoy. One such right is the ability to hold assets.

Limited liability companies can buy real estate for offices and warehouses, equipment and machinery, and other business assets in the name of the business, not the owners. This way, all the business assets can be kept separate from members’ personal assets.

Ability to Enter into Contracts

An Arizona LLC has legal rights that allow it the ability to enter into business contracts, without involving the members. So, investors, lenders, and other stakeholders can directly negotiate and enter into contracts with the business, not an individual.

How does it benefit you? Well, this allows LLCs to secure business funding in the name of the business. In case the business fails to pay off these debts, the LLC members do not need to worry about protecting their personal assets to pay off these debts.


Here are the features you’ll get with the free LLC formation plan:

  • Business name search: Easily search the state database to see if your chosen business name is available for use or if it’s already being used.
  • 1-year registered agent services: Get a professional Arizona registered agent to receive legal notices on your behalf for one year, completely free of charge.
  • Digital document management: Store, organize, and access your documents digitally, using the Inc Authority platform, which offers digital storage facilities.
  • Tax planning consultation: Ask a tax professional your questions related to tax savings. Get a free consultation on how to plan and file your taxes.
  • LLC formation: Let the experts at Inc Authority prepare, review, and file your Articles of Organization with the relevant Arizona department.
  • S-Corp election and filing: Get the federal S-Corp tax status by letting the team at Inc Authority prepare and file your application.
  • Business funding analysis: Get multiple sources of funding for managing your business expenses with help from experts at Inc Authority.

Price: Free


Here are the additional services you’ll get, apart from what you get with the Free plan:

  • LLC operating agreement: Take help from the experts at Inc Authority to prepare a comprehensive LLC operating agreement.
  • Tax ID Application: Quickly and easily obtain an Employer Identification Number for your Arizona LLC with help from Inc Authority’s team.
  • Business forms and documents package: Get ready-to-use templates for a variety of business documents and legal forms that you’ll need for your business.
  • Compliance notifications: Receive annual compliance notifications about upcoming deadlines from the team at Inc Authority.
  • Detailed tax planning consultation: Get a detailed consultation with a tax planning expert and get answers to all your tax-related questions.
  • Web domain + 5 business email addresses: Secure a domain name matching your business name and get 5 official email addresses for your business.

Price: Custom


Here are the additional services you’ll get, apart from what you get with the Starter plan:

  • Customer success advisor: Get a dedicated customer success manager who will be your point of contact for any queries or clarifications. You will get priority support and a quick response from your success advisor.
  • Private banking expert: Get access to a private banking expert who will help you choose the right banking partner and business bank account. They will also provide you with multiple options to choose from.
  • Personalized business advisory services: Ask all your business-related questions to a business advisor who can help you throughout your business formation process and after.
  • Expedited preparation & filing: Quickly start an LLC in Arizona by getting expedited application filing. The team at Inc Authority will review, prepare, and file your Articles of Organization within one business day.

Price: Custom

Why Choose Inc Authority to Form an LLC in Arizona?

Inc Authority is a leading LLC formation services provider trusted by over 250K businesses. It provides an excellent customer experience and makes the LLC formation process seem like a breeze. Here’s why you should choose Inc Authority.

Zero Costs

While other companies charge several hundred dollars for the same service, Inc Authority does it completely free. You get all the perks of a professional service provider at zero costs.

Expert Assistance

When you work with Inc Authority you get access to a team of experts in various fields from tax planning to business banking. You will get expert advice and consultation on various aspects of your business.


The team at Inc Authority will prepare, review, and file your Articles of Organization and ensure that the process goes smoothly. You’ll get a hassle-free and stress-free experience.

Form an LLC with Inc Authority


The filing fee for forming an LLC in Arizona is merely $50. The expedited filing fees vary depending on how quickly you want your application to be processed. Here are the extra costs for quick-processing:

  • Expedited processing: $35
  • Next-day service: $100
  • Same-day processing: $200
  • Two-hour processing: $400

If you hire a business formation service provider that doesn’t offer free services like Inc Authority, it will cost you even more. If you choose to do it yourself or hire Inc Authority, your costs will be limited to those mentioned above.

Here is the step-by-step process of forming an LLC in Arizona

  • Find a Name for Your Business: Choose a relevant business name and check the state database to ensure it’s not being used by any other business.
  • Reserve Your Business Name: Reserve your name with the state for 120 days, if you foresee any delays in starting your LLC registration process.
  • Appoint an Arizona Registered Agent: Hire the services of a local registered agent, either individual or company, with a physical address in Arizona.
  • Select the Type of LLC: Decide whether you want to form a single-member LLC or a multi-member LLC, and if you want it to be member-managed or manager-managed.
  • Draft an Arizona LLC Operating Agreement: Create a comprehensive operating agreement detailing how you want your LLC to run and the decision-making process.
  • File Your LLC Articles of Organization: Register your LLC with the state by filing your Arizona Articles of Organization with the Secretary of State.
  • Get a Federal EIN: Obtain a Tax ID or employer identification number (EIN) as it will be useful for a variety of business purposes, not just for paying taxes.
  • Open a Separate Bank Account for Your Business: Go through the available options and choose a good bank to open a business bank account.
  • Acquire Business Licenses and Permits: Find out the licensing requirements for your state, county, and type of business, and acquire the required licenses.
  • Choose How You Want to be Taxed: Choose how you want your LLC to be taxed. You can choose the default status or even go for the federal S-Corp tax status.
  • File for a DBA (Optional): If you want a shorter, more marketable name for your business, file a DBA to register an assumed name or fictitious name.
  • Get a Trademark (Optional): Protect your brand assets by applying for a trademark, which prohibits other businesses from using your name, logo, etc.
  • Create a Business Website (Optional): No business can be successful in today’s digital era, without having a good website, so get one for your business.
  • Maintain Your Good Standing with the State: Keep your business in good standing with the state and maintain your status by following all rules and regulations.

Here are some of the key benefits of forming an Arizona Limited Liability Company:

  • Personal Liability Protection: An LLC offer limited liability protection for its members. This protects their personal assets from being seized to pay off business debts.
  • Flexible Tax Structure: LLCs in Arizona can choose to be taxed as an S-Corporation or other business entities.
  • Affordable: The formation and maintenance costs of an Arizona LLC are much lower compared to that of an Arizona Corporation.
  • Less Paperwork: LLCs require less paperwork to form and run than a C-Corporation. In Arizona, an LLC is not even required to file an annual report.
  • Ease of Management: It is much easier to manage limited liability companies than it is to manage a C-Corporation or even an S-Corporation.
  • Ownership Flexibility: There are fewer restrictions on who can be a member of an LLC and how many members an LLC can have, compared to other entities like an S-Corp.
  • Ability to Hold Assets: LLCs can buy land, equipment, and other assets in its name. These will be separate from members’ personal assets.
  • Ability to Enter into Contracts: LLCs are legal entities that can enter into agreements and contracts with various stakeholders and organizations.

By default, LLCs in Arizona are considered pass-through entities, which means that business profits pass to LLC members, who then pay personal income taxes.

So, no, LLCs in Arizona do not need to pay corporate income taxes. Only the LLC members are taxed on their personal incomes from the business and any other sources.

However, if you choose for your LLC to be taxed as a Corporation, you may then have to pay corporate taxes.

Other taxes like self-employment taxe and sales tax are also applicable, depending on your type of business.

Yes, Arizona is a fairly business-friendly state with low tax rates and fewer compliance requirements. LLCs in Arizona, for example, don’t need to file annual reports or pay annual filing fees for the same. 

The formation process is simple and affordable, and the state offers multiple quick-processing options at an extra cost. This means you can get your LLC registered within the same day, which is a rare thing that not many states offer.

Overall, if you are an Arizona resident and want to start an LLC in the state, you don’t need to consider other states and can go ahead and form your LLC with ease.