Arizona LLC Filing Requirements and Taxes (2026)

Q: Does an Arizona LLC pay franchise tax?

No. Arizona imposes no franchise tax or annual privilege tax on LLCs. Profits pass through to the owners and are subject to Arizona's flat 2.5% individual income tax, unless the LLC elects corporate or S-corporation treatment.

Q: What ongoing filings does an Arizona LLC have?

An Arizona LLC must keep a statutory agent on file, complete the one-time publication unless its agent is in Maricopa or Pima County, file income tax returns on pass-through profits, and file TPT returns if it holds a Transaction Privilege Tax license.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

Arizona LLCs do not file an annual report and pay no franchise tax. The ongoing requirements are a one-time formation publication (unless the statutory agent is in Maricopa or Pima County), keeping a statutory agent on file, a $12 Transaction Privilege Tax license if you sell taxable goods, and the flat 2.5% state income tax on pass-through profits.

Quick Answer

Annual report: None for Arizona LLCs (corporations do file one)
Franchise tax: None on LLCs
Publication: One-time at formation, unless agent is in Maricopa or Pima County
Statutory agent: Must be maintained continuously - A.R.S. § 29-3115
Sales tax: Transaction Privilege Tax (TPT) license - $12 per location
Income tax: Flat 2.5% Arizona rate (2026) on pass-through profits

Arizona LLCs Do Not File an Annual Report

Arizona is one of the few states where an LLC has no annual report requirement. Unlike most states - and unlike Arizona corporations, which must file an annual report with the Arizona Corporation Commission - an Arizona LLC files nothing yearly with the Commission and pays no annual report fee. The Commission's annual reports page confirms the requirement applies to corporations, not LLCs.

This makes Arizona one of the lightest states for recurring LLC compliance. The trade-off is Arizona's one-time formation publication step, which most states do not have. After you form the LLC and complete publication where required, there is no yearly state entity filing to remember - only taxes and keeping your agent current.

The distinction between LLCs and corporations trips up many Arizona owners. Arizona corporations must file an annual report and a fee with the Corporation Commission, and they can be administratively dissolved for missing it. Arizona LLCs sit outside that regime entirely - the statutes that create the annual report obligation apply to corporations, and the Arizona Limited Liability Company Act contains no parallel yearly report for LLCs. So if you formed an LLC (not a corporation), you can disregard the corporate annual report notices and services that market "annual report filing" to LLCs; there is nothing to file and no fee to pay.

No Franchise Tax on Arizona LLCs

Arizona imposes no franchise tax and no annual privilege tax on LLCs for the right to exist. There is no counterpart to California's $800 annual franchise tax or the recurring "privilege" fees some states charge. An Arizona LLC's obligation to the state is transactional and income-based, not a flat annual levy on the entity.

As a result, the cost of simply keeping an Arizona LLC alive is effectively $0 in state fees each year. Your recurring spend comes from taxes on what the business earns and sells, plus any optional commercial statutory agent service. See Arizona LLC cost for the full fee picture.

This is worth stressing because filing services often bundle a recurring "state compliance" or "annual report" charge into their pricing for Arizona LLCs, implying an obligation that does not exist. There is no Arizona Corporation Commission entity that bills an LLC yearly, and there is no franchise or privilege tax on the entity's mere existence. The only way an Arizona LLC generates a recurring state obligation is by having taxable activity (income to report, taxable sales to remit) or by choosing to pay for a commercial agent - both of which are tied to real activity or a real service, not to a compliance fee for staying registered.

What Ongoing Requirements Do Apply

Even without an annual report, an Arizona LLC has ongoing obligations you must not overlook. The recurring and one-time requirements are:

Statutory agent - maintain one continuously with a physical Arizona address under A.R.S. § 29-3115; letting it lapse risks administrative dissolution;
Publication - a one-time notice within 60 days of formation under A.R.S. § 29-3201, unless your agent is in Maricopa or Pima County;
Income tax - Arizona and federal returns on pass-through profits;
TPT - file returns if you hold a Transaction Privilege Tax license;
Local licenses - renew any city or regulatory licenses on their own schedules.

Transaction Privilege Tax (TPT): Arizona's Sales Tax

Transaction Privilege Tax is Arizona's version of a sales tax, and it is the main transactional filing for many LLCs. TPT is technically a tax on the privilege of doing business in Arizona, measured by gross receipts, and it is administered by the Arizona Department of Revenue. If your LLC sells taxable goods or certain services, you must obtain a TPT license for $12 per business location through AZTaxes.gov before making sales; some cities add their own license fees.

Once licensed, you file TPT returns on the frequency the Department assigns - monthly, quarterly, or annually - based on your tax liability. Even a period with no taxable sales generally requires a zero return, so an active TPT license means a standing filing duty until you cancel it. Rates combine a state component with a city component and vary by business class and location, which is why the Department administers TPT centrally rather than as a single flat sales tax. Whether your activity is taxable depends on the business class; check whether you need a TPT license before you register. The TPT license also serves as the state-level business registration many owners look for; see how to get a business license in Arizona.

Arizona Income Tax on LLC Profits

Arizona income tax on LLC profits follows the LLC's federal classification. By default the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership, so profits pass through to the owners and are taxed on their individual Arizona returns. Arizona applies a flat 2.5% individual income tax rate (2026), reported to the Arizona Department of Revenue at its individual income tax page.

An LLC can instead elect to be taxed as a corporation, or as an S-corporation by filing IRS Form 2553, which can change how earnings and self-employment tax are treated. Arizona generally conforms to the federal entity choice. For the broader framework, see business tax and how to get an EIN, since an EIN underlies most of these filings.

Deadlines and Filing Frequencies

Deadlines vary by tax type rather than a single annual report date. Arizona individual income tax on pass-through profits generally tracks the federal April filing deadline, with extensions available. TPT returns are due on the schedule the Department of Revenue assigns - commonly the 20th of the month following the reporting period for monthly filers - so your due dates depend on your assigned frequency.

Because there is no annual report, there is no Corporation Commission deadline to track for an LLC. The dates that matter are your income tax return and, if applicable, your recurring TPT returns. Confirm your specific TPT frequency and due dates in your AZTaxes.gov account, since the Department assigns them based on your liability.

If your LLC has employees, add Arizona withholding tax and unemployment insurance to your calendar. Employers register for withholding through the same Joint Tax Application (Form JT-1) used for TPT and remit withheld income tax on a schedule the Department of Revenue assigns, while unemployment tax is handled through the Department of Economic Security. These payroll obligations are separate from the LLC's own income and TPT filings, so a single-member LLC with no staff will not encounter them, but a growing LLC should build them into its compliance calendar early.

A simple way to stay compliant is to keep three recurring items in view: your statutory agent designation, your income tax return, and - only if you sell taxable goods or services - your TPT returns. There is no fourth annual entity filing hiding behind them. Owners who confirm those three, plus any city license renewals, cover the substance of Arizona LLC compliance without an annual report.

Penalties for Missing Arizona Requirements

Missing Arizona's requirements carries consequences even without an annual report. Failing to maintain a statutory agent can lead the Corporation Commission to administratively dissolve the LLC, costing you good standing and, while dissolved, liability protection. Failing to complete the one-time publication where required leaves your formation out of compliance.

On the tax side, selling taxable goods without a TPT license, or filing TPT returns late, can trigger Department of Revenue penalties and interest, and unpaid income tax accrues the same. Keeping your agent, publication, and tax filings current is the simplest way to stay in good standing. If you are winding down instead, see how to dissolve an LLC in Arizona.

Frequently Asked Questions

Does an Arizona LLC file an annual report?

No. Arizona LLCs do not file an annual report with the Arizona Corporation Commission and pay no annual report fee. Arizona corporations do file one, but LLCs are exempt from that requirement.

Does an Arizona LLC pay franchise tax?

No. Arizona imposes no franchise tax on LLCs. Profits pass through to the owners and are subject to Arizona's flat 2.5% individual income tax, unless the LLC elects corporate or S-corporation treatment.

What ongoing filings does an Arizona LLC have?

Keep a statutory agent on file, complete the one-time publication unless your agent is in Maricopa or Pima County, file income tax returns on pass-through profits, and file TPT returns if you hold a Transaction Privilege Tax license.

What is Arizona TPT and does my LLC need it?

TPT is Arizona's transaction privilege tax, its version of a sales tax on gross receipts. If your LLC sells taxable goods or certain services, you need a TPT license for $12 per location from the Department of Revenue, filed through AZTaxes.gov.

When are Arizona LLC taxes due?

Arizona individual income tax on pass-through profits generally follows the federal April deadline. TPT returns are filed monthly, quarterly, or annually based on your assigned frequency. Confirm your dates with the Department of Revenue.

Sources

Arizona Corporation Commission - Annual Reports (annual report applies to corporations, not LLCs).
Arizona Corporation Commission - LLC Forms (no annual report form for LLCs).
Arizona Revised Statutes - A.R.S. § 29-3115 (continuous statutory agent obligation).
Arizona Revised Statutes - A.R.S. § 29-3201 (one-time publication; county exemption).
Arizona Department of Revenue - Transaction Privilege Tax (Arizona's sales tax).
Arizona Department of Revenue - TPT License ($12 per location).
Arizona Department of Revenue - Do I Need a TPT License?
Arizona Department of Revenue - Individual Income Tax Information (2.5% flat rate).
IRS - Limited Liability Company (LLC) (default pass-through classification).
IRS - About Form 2553 (S-corporation election).
Cornell Law School LII - 26 CFR § 301.7701-3 (entity classification).
Cornell Law School LII - Pass-through taxation (definition).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Arizona Corporation Commission and the Arizona Department of Revenue before acting.