Arizona Business Compliance Checklist
Arizona is the LLC-formation bargain of the West — $50 filing fee and no annual report requirement. This page covers everything from filing fees to sales tax to hiring laws.
$50
None
Not required
5.6%
state base rate
No
1. Entity Formation
| LLC filing fee (Articles of Organization) | $50 |
| Corp filing fee (Articles of Incorporation) | $60 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | Yes — publish formation notice in local newspaper. Cost estimate: $100. |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Not required |
| Franchise tax | None |
3. Sales Tax
| State base rate | 5.6% |
| Combined rate range (with local) | 5.6% – 11.2% |
| Economic nexus (out-of-state seller) | $100,000 per year |
| Marketplace facilitator law | Yes — marketplaces (Amazon, Etsy) collect on your behalf. |
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $14.70/hr (2025) |
| Paid sick leave law | Statewide mandate |
| Non-compete enforceability | Enforceable — reasonable scope and duration required |
| Contractor classification test | Common-law (IRS) test |
Full employment law breakdown: Arizona Hiring Laws.
5. Workers' Compensation
Arizona allows private-market workers' comp insurance (competitive market). Coverage is required starting with your first employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Flat rate: 2.5% on all income.
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes Arizona Distinctive
Compliance quirks and rules that separate Arizona from other states — worth understanding before you file.
- Arizona charges $50 to file LLC Articles of Organization — one of the cheapest LLC formation fees nationally.
- Arizona is one of three states (with NY and NE) with a newspaper publication requirement for LLC formation — publish a Notice of Publication for 3 consecutive weeks in an approved newspaper in the county of formation.
- The Arizona Corporation Commission (azcc.gov), not the Secretary of State, handles business entity filings — unusual among states.
- Arizona has no annual report requirement for LLCs, though corporations still must file annually.
This is a reference, not legal advice.
State fees and rules change. Verify current values with the Arizona Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.