How to Start an LLC in Arizona for Free
You can't avoid the $50 LLC filing fee in Arizona. But you can spend far less with these cost-saving strategies.
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Start Your LLC for $0 - Just Pay State Fees
- Get step-by-step guidance to form your LLC
- Check business name availability
- LLC formation processing within 14 business days
- Business coaching program (tax, compliance, marketing)
- Invoicing and bookkeeping (30-day trial)
Form Your LLC at $0 + State Filing Fees
- 100% Accurate Filing Guarantee
- File your Articles of Organization
- Check your business name
- Digital welcome packet
- Initial phone consultations on business insurance and taxes
Starter - $0 + State Filing Fees
- 1 year of Worry-Free Compliance (renews at $199/year)
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
No, but you can reduce startup and annual costs by doing the following:
The best things in life are free...but starting an Arizona LLC isn't one of them.
To launch an LLC in the Grand Canyon State, you need to shell out at least $50 to file documents with the state.
There's no avoiding Arizona's state filing fees for LLCs, but you can lower your startup costs with useful, practical tips.
First, here's the reason why a free Arizona LLC isn't possible at this time.
Why You Can't Start an LLC in Arizona for Free
Unlike a sole proprietorship that doesn't require formal registration, an Arizona LLC comes with mandatory documents and filing fees.
To form an LLC in Arizona, you need to pay the $50 filing fee for the Articles of Organization
. And that's just the beginning.
You also need to budget for the following:
- Notice of LLC Formation: $30 to $300
Once your Arizona LLC application is approved, you must publish a Notice of LLC Formation in a state-approved local newspaper. The publication fee varies between counties, but LLCs in Maricopa and Pima counties can do this step for free. - Transaction Privilege Tax License: $12[1]
You need to get this license from the Arizona Department of Revenue to do business in the state. This must be renewed each year on January 1st. - Name Reservation: $10 or $45[2]
You aren't required to reserve your business name in Arizona, but many people choose to so they can lock in the name they want before filing.
While there's no way around Arizona's filing fees, that doesn't mean you have to do it all on your own. You can save time, effort, and money with the right LLC formation service.
Free LLC Services in Arizona
Using a free LLC formation package can take the stress out of launching your Arizona LLC at no additional cost.
It can also help you avoid costly mistakes, like having to resubmit your application because of a preventable error. Some even include other useful features for your LLC, like a registered agent or state compliance assistance services.
See which ones best suit your needs and offer the most value below.
BusinessRocket
BusinessRocket is a national LLC services provider offering value-packed LLC formation packages. Even their free package includes more than just preparing and filing LLC documents.
You'll also get a free business phone for two months and a website domain for a year.[3] The business phone is especially valuable if you're a freelancer or home-based business owner because it gives your LLC a more professional image while keeping your personal number private.
If you were planning to get these tools for your LLC anyway, BusinessRocket's offer will help you save on your first year.
But what sets BusinessRocket apart is the real-time consultations. You can talk to an agent to make changes and discuss your business structure before they submit your documents. This helps avoid mistakes that could cost more to fix later on, especially because Arizona has a non-refundable policy.[4]
ZenBusiness
ZenBusiness offers a starter plan at $0 + state fees, with one free year of Worry-Free Compliance.
Even though Arizona doesn't require annual reports, that freebie is still valuable for LLCs that need to change details in their Articles of Organization after formation.
The Worry-Free Compliance package includes two free amendments, meaning you can get help filing changes up to two times in your first year without paying extra.[5]
Whether it's changing your LLC's name, updating its address, or adding a contact detail, you've got room to make early-stage adjustments without added cost.
Starter - $0 + State Filing Fees
- 1 year of Worry-Free Compliance (renews at $199/year)
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
No, ZenBusiness doesn't have hidden fees. However, you must take note of the free trials and when they end, like the one-year free trial for their Worry-Free Compliance. You'll be charged regular fees after the free period.
Tailor Brands
Tailor Brands offers an LLC formation package that's especially appealing to entrepreneurs who want branding tools alongside help with paperwork.
But if you aren't ready to try out their branding tools yet, you can get their basic plan at $0 + state fees. It includes a business name availability check, preparation and filing of your LLC application, and electronic access to your documents. Afterward, you can request a free custom business plan.
The business plan will give you valuable insights like marketing strategies to grow your customer base, a checklist of annual requirements such as state filings, licenses and permits, and tips on building a strong brand identity.
Start Your LLC for $0 - Just Pay State Fees
- Get step-by-step guidance to form your LLC
- Check business name availability
- LLC formation processing within 14 business days
- Business coaching program (tax, compliance, marketing)
- Invoicing and bookkeeping (30-day trial)
Tailor Brands usually forwards all LLC applications to the state within 14 business days (2 business days with expedited processing). However, the actual time it'll take to form your LLC will still depend on Arizona's current processing time.
LegalZoom
LegalZoom stands out as a two-in-one provider of both business formation and legal services.
With their free LLC formation package, you'll get complimentary tax consultation services from 1-800Accountant. You can ask about Arizona business taxes, like the transaction privilege tax. And get help avoiding costly oversights, like missed deductions or the wrong tax structure.
If you ever need legal advice, LegalZoom also offers affordable access to licensed attorneys. You can discuss little-known state and county laws that could affect your business and learn how to navigate them without paying steep hourly fees.
Form Your LLC at $0 + State Filing Fees
- 100% Accurate Filing Guarantee
- File your Articles of Organization
- Check your business name
- Digital welcome packet
- Initial phone consultations on business insurance and taxes
Some people like handling paperwork themselves, especially if they've done it before or feel comfortable reading state instructions. If you can relate, the next section is written especially for you.
Do It Yourself
Another way to save on costs is to consider doing everything yourself. Just be aware that handling the paperwork on your own can backfire if you miss a step or file incorrectly.
Mistakes can lead to rejected applications, extra filing fees, or even compliance issues down the line.
But if you're confident with paperwork and willing to put in a bit of time, forming your Arizona LLC manually can help you avoid service fees entirely.
That said, here are some of the LLC formation expenses you still need to prepare for:
| Arizona LLC expenses | Cost |
|---|---|
| Name reservation | $10 - $45[6] |
| Articles of Organization | $50 - $85[6] |
| Publication requirement | $30 - $300 |
| Transaction privilege tax license | $12[7] |
| Minimum startup budget | $102 |
How to Form an LLC in Arizona
Starting an LLC in Arizona is easy enough. You can even do it yourself in seven steps:
- Choose a name
Your LLC name must be unique and distinguishable from other businesses registered in Arizona. It must also have LLC, Ltd., or similar at the end.Make sure your LLC name is still available for use. Otherwise, the state will reject your application, and you will need to pay for another round of review.
- Appoint a statutory or registered agent
A statutory agent receives legal documents on behalf of your LLC. They must have a physical address in the state where the LLC does business.
You can save money by being your own registered agent or choosing an LLC service with free registered agent services.
- File the Articles of Organization
Next, submit the Articles of Organization and the filing fee to the Arizona Corporation Commission. This form includes details like the LLC name, statutory agent's details, and principal address. - Publish your LLC in newspapers
In Arizona, you must publish a Notice of LLC Formation for three consecutive publications within 60 days of formation.[8] The notice contains your LLC's name, the registered agent's name and address, and the name/s of member/s or manager/s, among other details.The publication fee varies between counties, but LLCs in Maricopa and Pima counties can do this step for free.
- Create an operating agreement
An LLC operating agreement contains information like the roles and responsibilities of each member, how new or departing members will be treated, and how business profits and losses will be divided.Most LLC services offer free operating agreement templates. You can customize them based on your LLC's specific rules.
- Get an EIN
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the IRS to identify a business entity for tax-related purposes.You can get this for free through the IRS, or select an LLC provider with complimentary EIN services.
- Get business permits and licenses
Depending on what your LLC does and where it's located, you may need additional licenses or permits. For example, you need a transaction privilege tax license to do business in Arizona. Research state-specific requirements and local rules that apply to your LLC.
Once your LLC is up and running, comply with ongoing requirements like paying the transaction privilege tax and renewing business permits and licenses.
You can also use the calculator below to get a clear picture of your minimum startup expenses.
Apply for a Business Grant
A business grant is another great way to take some of the sting out of startup costs when forming an LLC in Arizona.
Depending on the program, you might be able to use the funds for things like state filing fees, business licenses, or even equipment.
Here are a few Arizona-based programs worth checking out:
- AZ Federal and State Technology
FAST helps tech-focused small businesses in Arizona compete for federal research & development funding. - BuildItAZ Apprenticeship Initiative
This program offers grants to businesses in construction and building trades to support training, hiring, and growth. - Local First Arizona Grants
Local First supports Arizona entrepreneurs through various programs aimed at sustainable local economic development.
Optional Add-ons That Affect Cost
Some LLC formation services offer extras and upgrades that aren't required but might be marketed as helpful or convenient. The most common ones include:
- Registered agent service
- Operating agreement
- Expedited filing
- Annual report reminders
- Tax consultation or reminders
- Business website/domain/email packages
These affect how much you end up spending, even if you're technically forming your LLC for "free." Before accepting any extras, see if it's something you can handle yourself without paying someone else to do it.
Curious to know how much it costs to maintain an LLC in Arizona? Use the calculator below to get a clear picture of your ongoing expenses.
Common Mistakes to Avoid for Arizona LLCs
Saving money sounds great—but not so much when you're making costly mistakes. If you're trying to cut corners without knowing the rules, you could end up spending more in the long run.
Here are some of the common mistakes to avoid when forming an LLC in Arizona:
Using your home address for business registration
One of the benefits of paying for an LLC service is that they often let you use their office address in your Articles of Organization.
Otherwise, especially for home-based businesses, your personal address becomes part of the public record—something you might not want for privacy or security reasons.
Not having a business plan
Not having a business plan can lead to several financial consequences that may hurt your LLC in both the short and long term. For example, you might overlook recurring expenses and end up draining your savings.
If you're not sure where to start, some free LLC formation packages, like the one from Tailor Brands, include a custom business plan with basic financial planning features to help you get organized early on.
Missing important deadlines
Arizona has strict filing deadlines. So if you miss them, you could face late fees, loss of good standing, or in worst cases, administrative dissolution of your LLC.
Some LLC services offer free lifetime alerts to help you stay on top of filings like your annual report or business license renewal, so you don't risk unnecessary penalties or closure.
Not drafting an operating agreement
Arizona doesn't require an operating agreement. However, skipping it means your LLC will automatically follow the state's default rules, which might not align with how you want to run your business.
You don't have to write one from scratch; plenty of templates are available online. Some LLC services also include a customized version in their packages. For example, Northwest Registered Agent's $39 + state fees package already comes with an operating agreement.
LLC Formation Service - $39 + State Fees
- Privacy by Default (use their address instead of yours)
- Files all paperwork with the state
- 1 year registered agent included
- Free LLC Operating Agreement
- Never sells your data. Ever.
Underestimating tax responsibilities
Say you start selling online, make a few thousand dollars, and assume it's too small to worry about taxes. Then tax season hits, and suddenly you're scrambling to figure out sales tax, self-employment tax, or income reporting.
Misunderstanding your obligations can lead to missed payments, penalties, or audits. Some services, like ZenBusiness, include a free tax consultation with their free LLC formation package, which can help you get ahead of potential issues before they snowball.
Frequently Asked Questions
- What is the cheapest way to start an LLC in Arizona?
The most affordable route is to DIY every step: file the Articles of Organization yourself online, act as your own statutory agent, use free templates for your operating agreement, and get your EIN at no cost from the IRS.
- How much is the LLC fee in Arizona?
Filing the Articles of Organization costs $50 for standard processing. If you choose expedited service, the total increases to $85. For even faster options, such as same-day, next-day, or two-hour processing, additional fees apply.[6]
- How long does it take to create an LLC in AZ?
If you submit the Articles of Organization online, you will receive the decision letter in around 2 weeks. If you apply by mail, the processing time could take longer. Alternatively, pay for expedited services, which cost a total of $85, or more for faster options such as same-day or two-hour processing.[6]
- Do I need a business license if I have an LLC in Arizona?
Arizona LLCs that sell goods or taxable services are required to have a transaction privilege tax license to do business in the state. The license must be renewed annually, and renewal fees vary depending on the region where your business operates.
- How much is business tax in Arizona?
The base transaction privilege tax rate in Arizona is 5.6%. However, some cities and counties in Arizona impose additional TPT taxes, so the total TPT rate can be as high as 11.2%.[7]
You may also be required to pay other taxes in Arizona, like the state's 2.5% flat income tax.[9] Cities and counties may impose their own local taxes as well, adding to your annual expenses.
Bottom Line
You can't start an LLC in Arizona completely free, but you can keep costs low by choosing a free formation service, skipping avoidable paid services, and staying on top of state requirements.
Whether you file everything yourself or use a trusted provider, the key is knowing where to save—and where it's smarter to spend.
References
- ^ Arizona Department of Revenue. Transaction Privilege Tax , Retrieved 08/18/2025
- ^ Arizona Corporation Commission. Application to Reserve Corporation Name, Retrieved 08/18/2025
- ^ BusinessRocket. Free LLC Registration, Retrieved 07/17/2025
- ^ Arizona Corporation Commission. Fee and Payment Information, Retrieved 07/17/2025
- ^ ZenBusiness. Worry-Free Compliance Service, Retrieved 07/17/2025
- ^ Arizona Corporation Commission. Fee and Payment Information, Retrieved 07/17/2025
- ^ Arizona Department of Revenue. Transaction Privilege Tax, Retrieved 07/17/2025
- ^ Arizona State Legislature. ARS 29-3201, Retrieved 07/17/2025
- ^ Arizona Department of Revenue. Individual Income Tax Forms, Retrieved 07/17/2025
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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