Why Is This Such a Big Deal for Arizona LLC Owners?

Many states treat their LLC annual report requirement as a revenue stream, charging fees that range from modest to painful. In California, LLCs owe an $800 minimum franchise tax every year regardless of whether the LLC earns a single dollar. In Nevada, the combined annual report and business license fees can exceed $500. In Delaware, the annual franchise tax for LLCs is $300 per year.

Arizona charges none of that. After you pay the one-time ACC filing fee to form your LLC, you owe the state nothing on an annual basis simply for the privilege of existing as an Arizona LLC. That savings adds up significantly over the life of your business.

How Does Arizona Compare to Other States?

The table below shows how Arizona stacks up against several popular states for LLC formation costs and annual obligations.

Forming and maintaining an Arizona LLC is genuinely one of the least expensive options in the United States.

Is There Anything Arizona Does Require After Your LLC Is Formed?

Yes — one post-formation requirement applies to most Arizona LLCs: publication. Under Arizona law, after the ACC approves your Articles of Organization, you must publish a notice of LLC formation in a newspaper of general circulation in the county where your LLC's statutory agent is located. The notice must run for three consecutive weeks. Once published, you file an Affidavit of Publication with the ACC to complete the process.

This publication requirement is a one-time obligation, not an annual one. You do it once when you form your LLC, and you are done.

What If My LLC's Statutory Agent Is in Maricopa or Pima County?

If your LLC's statutory agent address is located in Maricopa County (the Phoenix metro area) or Pima County (the Tucson area), you are completely exempt from the publication requirement. The ACC publishes the notice on your behalf at no charge through its online database. This exemption covers the vast majority of Arizona LLCs.

Are There Any Other Ongoing Obligations to the ACC?

There is one important ongoing obligation: you must keep your LLC's statutory agent information current with the ACC at all times. If your statutory agent changes — or if the agent's address changes — you must update the ACC's records by filing the appropriate form. Failure to maintain a current statutory agent can result in the ACC administratively dissolving your LLC, which eliminates the liability protection the LLC provides to its members.

As long as your statutory agent information is current, your Arizona LLC stays in good standing indefinitely with no annual reports and no annual fees.

Does This Mean an Arizona LLC Has No Annual Tax Obligations?

The absence of an annual report or fee to the ACC does not mean your LLC has no tax obligations. Depending on how your LLC is taxed — as a sole proprietorship, partnership, S corporation, or C corporation — you will have federal and potentially Arizona state income tax filing requirements. You may also owe transaction privilege tax (Arizona's version of sales tax) if your LLC sells taxable goods or services.

The key distinction is that these tax obligations are separate from the ACC's LLC maintenance requirements. Arizona simply does not add a state-level annual LLC report or fee on top of your existing tax obligations the way most other states do.

The Bottom Line

Arizona is one of the best states in the country to form and maintain an LLC. No annual reports. No annual fees. No recurring paperwork due to the ACC just to keep your LLC alive. Combined with Arizona's favorable LLC statutes, the absence of ongoing maintenance costs makes forming an Arizona LLC an excellent choice for business owners and investors alike.