Limited Liability Company FAQs

How much does it cost to form an Arizona LLC?

The Arizona Corporation Commission charges a $50 filing fee for regular processing or $85 for expedited processing of your Articles of Organization. If you hire KEYTLaw to form your LLC, our packages start at $497 for the Bronze package, which includes drafting and filing the Articles of Organization. Our Silver package ($897) adds a custom Operating Agreement, an EIN, and our 170-page Arizona LLC Operations Manual.  Our Gold LLC package is $1,397 and it gives you the same contents as the Silver package plus you get a revocable living trust that owns the LLC and keeps your name and address off of the public records.

How long does it take to form an Arizona LLC?

When KEYTLaw is hired and paid, we get your Articles of Organization approved the same day. Regular ACC processing without expediting takes about 30 days, expedited paper filing takes 5-7 days, and expedited online filing can be approved in as little as 10 minutes.

Does an Arizona LLC need a Statutory Agent?

Yes. Every Arizona LLC must designate a Statutory Agent, also called a Registered Agent, to receive official legal and state documents on the LLC’s behalf. The agent must maintain a physical street address in Arizona (not a PO Box) and be available to accept legal notices and forward them promptly to the LLC.

Does Arizona require LLCs to file an annual report or pay an annual fee?

No. Unlike most states, Arizona does not require LLCs to file an annual report or pay an annual renewal fee. Once your LLC is approved, it stays in good standing indefinitely with no recurring state fees, which makes Arizona one of the most affordable states for maintaining a business entity.

Do I need an Operating Agreement for my Arizona LLC?

Arizona law does not legally require an LLC to have an Operating Agreement, but operating without one is risky. Without a signed agreement, your LLC defaults to Arizona’s statutory rules, which split profits and voting power equally among members regardless of how much each member actually contributed or owns. A custom Operating Agreement overrides these defaults and gives you legal proof of ownership that banks, title companies, and courts require.

How is an Arizona LLC taxed?

The IRS does not have a separate tax category for LLCs. By default, a single-member LLC is taxed as a disregarded entity (like a sole proprietorship), and a multi-member LLC is taxed as a partnership. LLC owners can also elect to have the LLC taxed as an S corporation or C corporation if that classification produces a better tax outcome for their situation.

Can a minor own an interest in an Arizona LLC?

Yes. Arizona law has no minimum age requirement for LLC members, so a child under 18 can legally own a membership interest. However, because minors cannot enter into binding contracts, they cannot sign agreements or open bank accounts for the LLC. An adult manager, parent, guardian, or trust typically needs to handle the LLC’s legal and financial obligations on the minor’s behalf.

What happens to my Arizona LLC if I die without a plan?

Without proper planning, your LLC membership interest does not automatically pass to your loved ones. It must go through Arizona probate unless the value of your personal property is under $200,000, and your heirs may inherit only an economic interest with no voting or management rights. Transferring your LLC interest into a revocable living trust, or holding it as community property with right of survivorship for married couples, allows the interest to pass automatically and avoid probate.

How do I add or remove a member from my Arizona LLC?

Adding or removing a member requires three steps: signing a written Assignment of Membership Interest to transfer ownership, updating the LLC’s Operating Agreement to reflect the new membership structure, and filing an Amendment to the Articles of Organization with the Arizona Corporation Commission. Skipping any of these steps can leave your LLC’s ownership records legally unclear.

How do I dissolve or terminate an Arizona LLC?

Terminating an Arizona LLC is a two-phase process: first winding up the business by paying debts and distributing remaining assets in the order required by law, then filing Articles of Termination with the Arizona Corporation Commission. The tax consequences of dissolving depend on how the IRS classifies your LLC, so it’s worth reviewing both the legal and tax sides before you start the process.