How to Start a Business in Arizona

Choose a Business Structure

Most new businesses in Arizona start as a sole proprietorship, an LLC, or a corporation. A sole proprietorship needs no state formation filing if you operate under your own legal name, but it gives no liability protection. An LLC is a separate legal entity that shields personal assets in most circumstances and is the most common choice for new small businesses; a corporation suits a business planning to raise outside investment or issue stock. Whichever you choose, every structure benefiting from state registration still needs to meet Arizona's naming, agent, and tax requirements below.

File With the Arizona Corporation Commission

Arizona LLCs file Articles of Organization (Form L010) with the Arizona Corporation Commission for a $50 fee, either online through the Commission's eCorp system or by mail. Standard processing time varies week to week and is posted on eCorp; if you need it faster, Arizona offers paid expedited options, including a $35 standard expedite, $100 for guaranteed Next Day service, $200 for Same Day service, or $400 for 2-Hour service. Corporations file Articles of Incorporation with the Commission instead; check the Commission's current fee schedule directly, since LLC and corporation fees are set separately.

Search and Reserve Your Name

Search the Commission's eCorp Entity Search before filing to confirm your name is distinguishable from existing Arizona entities. An LLC's name must contain "limited liability company," "limited company," or an abbreviation like "LLC" or "L.L.C.," and cannot contain words like "corporation" or "incorporated." If you're not ready to file yet, you can reserve a name for $10 for 120 days through an Application to Reserve LLC Name.

Appoint a Statutory Agent

Arizona calls its registered agent a statutory agent, and every LLC and corporation must appoint one: an Arizona resident at least 18 years old, or a corporation or LLC (other than the entity itself) authorized to do business in Arizona, with a permanent Arizona street address. A member or manager can serve personally as the LLC's statutory agent, but the LLC itself cannot act as its own agent. The appointment has no expiration date and continues until the agent resigns or is replaced, for a $5 change fee.

Publish Notice of Your LLC

Within 60 days after the Commission files your Articles of Organization, Arizona requires publishing notice of the filing for three consecutive issues in a newspaper of general circulation in your statutory agent's county, unless that county's population exceeds 800,000. Only Maricopa and Pima counties currently exceed that threshold, so if your statutory agent's address is in either one, the Commission publishes the notice automatically on its own website at no cost; every other Arizona county requires newspaper publication, at a cost set by the newspaper rather than the state.

Get an EIN From the IRS

Once the Commission approves your filing, apply for a free Employer Identification Number directly from the IRS. Most banks require one to open a business account, and it's required regardless of structure if you plan to hire employees.

Register for Arizona Taxes

If you'll sell taxable goods or services, register for a Transaction Privilege Tax (TPT) license with the Arizona Department of Revenue through AZTaxes.gov; despite the name, TPT functions like a sales tax, though it's legally a tax on the seller, and many Arizona cities add their own transaction privilege tax on top of the state's rate. Arizona taxes individual income at a flat 2.5% rate, so a default pass-through LLC's profits are taxed once on the members' personal returns at that rate; eligible owners can instead elect Arizona's Small Business Income (SBI) tax, also a flat 2.5%, filed on a separate return. If you'll hire employees, register with the Arizona Department of Economic Security for unemployment insurance tax and with the Department of Revenue for income tax withholding.

Get Local Licenses and Permits

Beyond state registration, check whether your city or county requires a general business license and whether your industry needs a specific permit, such as a health permit for food service. Arizona's Business One Stop portal is a useful starting point for identifying state-level requirements by industry and location.

Keep the Business Compliant

Arizona LLCs skip the annual report entirely, unlike LLCs in many other states, though corporations still must file one. An LLC can still be administratively dissolved for other reasons, such as failing to maintain a statutory agent or an unpaid fee, so keep your agent and principal address current with the Commission even without an annual filing requirement.

For a deeper walkthrough of Arizona LLC formation specifically, including entity options and foreign qualification, see our Arizona LLC guide.

Arizona's Lack of an Annual LLC Report Is Unusual

Most states require some form of recurring report to keep an LLC in good standing; Arizona is one of a small number that doesn't require this for LLCs at all. Don't assume this means no ongoing compliance exists, since maintaining a valid statutory agent and current address still matters.

Publication Costs Vary by Newspaper

Unlike the state's own fees, which are fixed, newspaper publication costs outside Maricopa and Pima counties are set by the specific newspaper you use, not by the state. Get a quote before assuming a specific cost, and complete publication within the 60-day window to stay compliant.

TPT Is Not a Simple Flat Sales Tax

Because Arizona's Transaction Privilege Tax is legally a tax on the seller rather than the buyer, and many cities layer their own TPT on top of the state's, the effective rate and reporting obligations can be more complex than a typical state sales tax. Confirm your specific city's requirements in addition to the state's through AZTaxes.gov.

A Statutory Agent Cannot Be the LLC Itself

Arizona specifically prohibits an LLC from serving as its own statutory agent, even though an LLC or corporation can serve as another company's agent. Confirm whoever you name meets this individual-or-separate-entity requirement before filing.

This Is Not Legal or Tax Advice

Arizona's requirements can change, and your specific industry may have additional state or local licensing requirements beyond what's covered here. Confirm current rules with the Arizona Corporation Commission and Department of Revenue, and talk to a tax professional about which structure and tax elections fit your situation.