State Guide · Every way to form a business in Arizona, five entity types, one flat price each, state fees at cost.
Arizona · Business Formation
Start a Business in Arizona
Arizona has quietly become one of the easier and cheaper states in the country to get a business off the ground. Filing fees run low, the state's business registry is fully online, and the newest owner friendly wrinkle is real: most Arizona LLCs never file an annual report at all. What you form still matters, though. A freelance designer, a startup chasing investors, a real-estate fund, a two-partner law practice, and a charity each want a different structure. This page lays out the five entity types Arizona recognizes, shows who each one fits, and walks through exactly what filing involves so you can choose once and file it correctly.
✓ No hidden fees ✓ No second-year price hikes ✓ No missed filings
Choose your entity type
One price for everything we do. Formation, registered agent, and annual report, all in $199.00/yr. The state's own fee is the only thing on top, at cost.
Arizona LLC
Liability protection with pass-through taxes and minimal upkeep — the flexible default most small businesses choose.
Arizona Corporation
A board-and-officer structure built to issue stock and raise capital. The standard for startups seeking investors.
Arizona LP
A general partner runs it while limited partners invest passively with capped liability. Common for funds and real estate.
Arizona LLP
A partnership that shields every partner from the others' liabilities — the norm for law, accounting, and licensed firms.
Arizona Nonprofit
A mission-driven corporation with no owners, formed to pursue 501(c)(3) federal tax-exempt status.
Why founders form in Arizona
Arizona does not get the same headlines as Delaware or Nevada, but for the average small business it is a genuinely strong place to incorporate. The state's formation fees are among the lower ones in the country, and the ongoing burden is light — lighter than most owners expect. Arizona also has a flat individual income tax, which keeps the math simple for the pass-through entities that make up the bulk of new businesses, since LLC and partnership profits land on the owners' personal returns rather than a separate business return.
The agency behind all of this is the Arizona Corporation Commission, usually shortened to the ACC. That name trips up newcomers, because in most states business entities are registered with the Secretary of State. In Arizona, corporations, LLCs, and nonprofits are chartered by the Corporation Commission instead, while a handful of filings — trade names and limited liability partnerships, for example — run through the Arizona Secretary of State. Knowing which office handles your entity is the first thing that saves you a wasted afternoon.
Filing is done through the Commission's online system at ecorp.azcc.gov, which the state has been modernizing into a single Arizona Business Center portal. You can search existing entities, check whether a name is free, and submit formation documents without leaving your desk. Between the low fees, the online workflow, and a compliance calendar that is thinner than average, Arizona rewards owners who take a few minutes to pick the right structure before they file.
The five entity types, and who each one fits
Arizona recognizes five formation types, and together they cover nearly every situation a founder walks in with. Here is the plain-language version of how they differ.
LLC — the flexible default
A limited liability company is what most new Arizona businesses become, and for good reason. It draws a line between your personal assets and the company's debts, it is taxed as a pass-through by default so there is no separate corporate return, and it asks almost nothing of you year to year. One member or a dozen, hands-on or silent, a food truck or a software shop — the LLC stretches to fit. If you are not certain what you need, this is nearly always where to begin.
Corporation — built to take on investors
A corporation issues shares of stock, reports to a board, and acts through officers. That is more machinery than an LLC carries, but it is the exact machinery that venture investors, angel groups, and stock-option plans are designed around. If you intend to raise a priced round, hand equity to early employees, or someday sell or go public, the corporation is the vehicle built for it — and converting to one later costs more than starting there.
LP — passive backers, one hands-on partner
A limited partnership joins a general partner who runs the business and shoulders the liability with one or more limited partners who put in money but stay out of the driver's seat. It is a long-standing structure for investment funds, real-estate deals, and family money, where a few people manage and the rest simply finance.
LLP — a shield across a partnership
A limited liability partnership takes an ordinary partnership and bolts on a liability shield, so no partner is personally answerable for another partner's mistakes. It is the standard pick for groups of licensed professionals — lawyers, accountants, architects, and the like — who want to practice together without inheriting one another's malpractice exposure. In Arizona the LLP is registered with the Secretary of State rather than the Corporation Commission.
Nonprofit — a purpose, not an owner
A nonprofit corporation has no shareholders and issues no stock. It exists to advance a charitable, religious, educational, or civic mission, and forming one with the ACC is the opening move toward 501(c)(3) tax-exempt status from the IRS. Incorporating the nonprofit and winning federal exemption are two separate jobs; the nonprofit filing is where the first one starts.
How to choose the right structure
A handful of honest questions usually settles the decision.
Are you raising venture money or issuing stock options? Form a corporation. Investors and equity plans are built around corporate shares, and starting as anything else means an expensive conversion down the road.
Are you a group of licensed professionals going into practice together? An LLP gives each partner a shield against the others' liabilities while keeping the looseness of a partnership. Note that this one is filed with the Secretary of State in Arizona.
Do you have backers who want to fund the business but not run it? A limited partnership lets one general partner manage while the limited partners stay passive, with their risk capped at what they put in.
Are you building something mission-driven rather than profit-seeking? A nonprofit corporation is the structure that opens the door to tax exemption, grant eligibility, and tax-deductible donations.
Anything else, or still deciding? Form an LLC. It guards your personal assets, keeps taxes and paperwork minimal, and fits the large majority of small and growing companies. You can even elect to have the LLC taxed as an S corporation or C corporation later without tearing the company down and rebuilding it.
The real cost differences between these types come mostly from the state's filing fees, which vary by entity. Each entity page on this site lists Arizona's current fee next to our service price, so you can weigh the actual numbers before you commit to one.
What forming an Arizona business actually involves
Whichever entity you land on, the backbone of the process is the same, and none of it is complicated once you know the sequence.
1. Pick and clear a name. Your business name has to be distinguishable from every other entity already on file. A free search at ecorp.azcc.gov confirms in seconds whether it is available, and the Secretary of State's trade-name database covers names filed on that side. Each entity type carries its own required tag — "LLC," "Inc.," "L.P.," and so on — and certain words are restricted.
2. Appoint a statutory agent. Arizona calls it a statutory agent rather than a registered agent, but the job is the same: a person or company with a physical Arizona street address who is available during business hours to accept legal papers and state notices on the entity's behalf. The agent has to sign a consent form accepting the role. You can serve as your own, but many owners use a commercial statutory agent to keep their home address off the public record and avoid missing a time-sensitive delivery.
3. File your formation document. For an LLC this is the Articles of Organization; for a corporation or nonprofit, the Articles of Incorporation; for a partnership, the matching certificate. LLCs, corporations, and nonprofits go to the Corporation Commission, while LLPs are registered with the Secretary of State. Once the filing is accepted, the entity legally exists.
4. Meet the publication requirement — if it applies. Here is Arizona's genuine quirk. New LLCs and corporations generally must publish a notice of formation in an approved newspaper for three consecutive runs, within 60 days of being approved. The twist: businesses whose statutory agent sits in Maricopa or Pima County are exempt, because the Commission already posts those notices electronically. Since Phoenix and Tucson fall in those two counties, most Arizona filers never touch this step — but if you form elsewhere in the state, do not skip it.
5. Get an EIN. An Employer Identification Number is your business's federal tax ID. The IRS issues it at no charge, and you need it to open a bank account, hire employees, and file taxes. Any service that bills you to "obtain" one is charging for something the government gives away free.
6. Handle governance and ongoing compliance. Depending on the entity that means an operating agreement, corporate bylaws, or a partnership agreement — plus staying current with the state. This is where Arizona genuinely differs from most states: Arizona LLCs do not file an annual report at all, and pay no yearly report fee. Corporations and nonprofits, on the other hand, file an annual report with the ACC keyed to the anniversary of their formation, and Arizona LLPs file with the Secretary of State by April 30 each year. Knowing your entity's rule, or lack of one, is what keeps you in good standing.
Frequently asked questions
What is the cheapest way to start a business in Arizona?
An LLC is almost always the lowest-cost path. It carries Arizona's lightest formation footprint and the least ongoing paperwork — and because Arizona LLCs file no annual report, there is no recurring state report fee to plan for. You can trim costs further by acting as your own statutory agent and getting your EIN straight from the IRS for free, though many owners still use a commercial agent to keep their address private. Each entity page shows the exact current Arizona filing fee so you can compare before you file.
Do I have to live in Arizona to form an Arizona business?
No. You do not have to be an Arizona resident, or even a U.S. resident, to form an Arizona LLC, corporation, or other entity. What you do need is a statutory agent with a physical Arizona street address who is available during business hours — which is the main reason out-of-state owners almost always hire a commercial statutory agent service.
Which is better in Arizona, an LLC or a corporation?
For most small and growing businesses, the LLC wins on simplicity, cost, and flexibility — and Arizona sweetens that further, since LLCs skip the annual report that corporations must file. A corporation makes sense when you plan to raise venture capital, issue stock options, or eventually go public, because investors and option plans are built around corporate shares. If none of that applies yet, an LLC is usually the smarter starting point.
Does Arizona have a state income tax on my business?
Arizona has a flat individual income tax rather than a graduated one, which keeps the math straightforward for pass-through entities like LLCs and partnerships, whose profits are reported on the owners' personal returns. C-corporations pay Arizona's separate corporate income tax on their own profits. Either way, Arizona's rates sit toward the lower end nationally, which is part of the state's appeal.
What annual filing does an Arizona business have to make?
It depends entirely on the entity. Arizona LLCs are the standout — they file no annual report and pay no yearly report fee, which is unusual among the states. Corporations and nonprofits file an annual report with the Arizona Corporation Commission tied to the anniversary of their formation, and limited liability partnerships file with the Secretary of State by April 30 each year. Knowing which rule covers your entity is what keeps it in good standing.
What is Arizona's newspaper publication requirement?
After a new LLC or corporation is approved, Arizona generally requires you to publish a notice of formation in an approved newspaper for three consecutive runs, within 60 days of approval. Businesses whose statutory agent is located in Maricopa County or Pima County are exempt, because the Corporation Commission posts those notices electronically instead. Since Phoenix and Tucson sit in those counties, most Arizona filers are never affected — but it applies if you form in other parts of the state.
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