Is it cheaper to form an LLC in Alaska or Arizona?

Arizona is cheaper at formation ($50) than Alaska ($250). Ongoing costs are also different: $100 vs $150 per year. Total over three years: $350 vs $700.

Can I form an LLC in Alaska if I live in Arizona?

Yes, but your Arizona business will almost certainly need to register as a foreign LLC in Arizona too, which means paying Arizona's foreign registration fee and any ongoing Arizona obligations on top of the Alaska ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in Alaska vs Arizona?

Alaska online: 1 business day; Arizona online: 14 business days. Alaska does not offer paid expedite. Arizona offers paid expedite from $35.

Which state has lower taxes for an LLC, Alaska or Arizona?

Alaska: no state income tax, no entity-level franchise or LLC tax. Arizona: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Alaska and Arizona both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Does Alaska or Arizona have a publication requirement?

Arizona does. New LLCs must publish a formation notice in approved newspapers, which can add $50 to $1,800 to your first-year cost depending on the county where the LLC is based. Alaska has no publication requirement.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Alaska or Arizona to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Alaska vs Arizona LLC comparison

Alaska charges $250 to form an LLC; Arizona charges $50. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Arizona runs about $350 less in total state fees than Alaska. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

On speed, Alaska typically clears standard online filings faster than Arizona. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Alaska $250

Arizona $50

Arizona saves $200

Year 1 total estimate

Alaska $400

Arizona $150

Arizona saves $250

Ongoing per year

Alaska $150

Arizona $100

Arizona saves $50

3-year total

Alaska $700

Arizona $350

Arizona saves $350

Key differences at a glance

Arizona costs $200 less to form ($50 vs $250).
Arizona is $50 per year cheaper to maintain ($100 vs $150).
Alaska has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.
Arizona requires newly formed LLCs to publish a formation notice in local newspapers; this can add $50 to $1,800 depending on county.
Arizona has no annual report filing at all. Alaska requires an annual (or biennial) report every reporting period.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Alaska

No state income tax
No state sales tax
No publication requirement

Only Arizona

Paid expedited tier
No annual report

Both states

Online filing
No entity-level franchise or LLC tax
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Alaska Arizona

Year 1

$400

$150

Year 2

$550

$250

Year 3

$700

$350

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Alaska, business operates there No foreign LLC registration needed. You pay Alaska fees only.	$400	$150	$700
You live in Arizona, business operates there No foreign LLC registration needed. You pay Arizona fees only.	$150	$100	$350
Non-resident forming in Alaska with operations elsewhere You pay Alaska's fees plus a typical home-state foreign LLC registration of about $200 per year.	$600	$350	$1,300
Non-resident forming in Arizona with operations elsewhere You pay Arizona's fees plus a typical home-state foreign LLC registration of about $200 per year.	$350	$300	$950

Alaska vs Arizona: full comparison

Dimension	Alaska	Arizona
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	1 business day	14 business days
Expedited option Paid fast-track filing	Not offered	$35
Annual report Required in addition to tax	Required, $100	None
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	None
State income tax On pass-through LLC income at member level	No	Yes
Publication requirement Newspaper publication after formation	No	Required
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$350	$150
State sales tax General statewide rate	None	5.6%

Taxes in Alaska and Arizona

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Alaska tax

No entity-level franchise tax on LLCs. No state income tax. Corporate rate 9.4%.

Arizona tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.9%.

Ongoing compliance

The recurring filings each state requires after formation.

Alaska

Annual report $100, due 01/02 each year. Registered agent required in Alaska.

Arizona

No annual state filing. Registered agent required in Arizona.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Alaska

Check business-name availability on the Alaska entity search.
Appoint a registered agent with a physical Alaska street address.
File Articles of Organization (form 08-484) for $250.
Wait for approval. Online typically 1 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by Alaska statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $100 when it comes due.

Arizona

Prepare a publication-ready notice (required in Arizona).
Check business-name availability on the Arizona entity search.
Appoint a registered agent with a physical Arizona street address.
File Articles of Organization (Form L010) for $50.
Wait for approval. Online typically 14 business days. Paid expedite from $35.
Adopt an operating agreement (recommended, not required by Arizona statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
No annual state filing required in Arizona.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Alaska and Arizona (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Alaska or Arizona does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Alaska Division of Corporations, Business and Professional Licensing (Corporations Section)

Website: www.commerce.alaska.gov/web/cbpl/Corporations.aspx
Phone: (907) 465-2550
Email: corporations@alaska.gov
Mail: State of Alaska, Corporations Section, P.O. Box 110806, Juneau, AK 99811-0806
Office: State Office Building, 333 Willoughby Avenue, 9th Floor, Juneau, AK 99801-1770
Hours: 8:00 AM to 4:30 PM Alaska Time, Monday to Friday (Juneau office)

Arizona Corporation Commission - Corporations Division

Website: azcc.gov/corporations/home
Phone: (602) 542-3026
Email: answers@azcc.gov
Mail: Arizona Corporation Commission, Corporations Division, 1300 West Washington Street, Phoenix, AZ 85007-2996
Office: Arizona Corporation Commission, 1300 West Washington Street, Phoenix, AZ 85007-2996
Hours: 8:00 AM to 5:00 PM Mountain, Monday to Friday

Alaska Department of Revenue, Tax Division

Website: tax.alaska.gov
Phone: (907) 269-6620
Mail: Alaska Department of Revenue, Tax Division, P.O. Box 110420, Juneau, AK 99811-0420
Office: 550 W. Seventh Ave., Suite 500, Anchorage, AK 99501-3555
Hours: 8:00 AM to 4:30 PM Alaska Time, Monday to Friday

Arizona Department of Revenue

Website: azdor.gov
Phone: (602) 255-3381
Mail: Arizona Department of Revenue, 1600 W Monroe St, Phoenix, AZ 85007
Office: 1600 W Monroe St, Phoenix, AZ 85007
Hours: 8:00 AM to 5:00 PM Mountain, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Alaska or Arizona?

Arizona is cheaper at formation ($50) than Alaska ($250). Ongoing costs are also different: $100 vs $150 per year. Total over three years: $350 vs $700.
Can I form an LLC in Alaska if I live in Arizona?

Yes, but your Arizona business will almost certainly need to register as a foreign LLC in Arizona too, which means paying Arizona's foreign registration fee and any ongoing Arizona obligations on top of the Alaska ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Alaska vs Arizona?

Alaska online: 1 business day; Arizona online: 14 business days. Alaska does not offer paid expedite. Arizona offers paid expedite from $35.
Which state has lower taxes for an LLC, Alaska or Arizona?

Alaska: no state income tax, no entity-level franchise or LLC tax. Arizona: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Alaska and Arizona both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Does Alaska or Arizona have a publication requirement?

Arizona does. New LLCs must publish a formation notice in approved newspapers, which can add $50 to $1,800 to your first-year cost depending on the county where the LLC is based. Alaska has no publication requirement.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Alaska or Arizona to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

AlaskaOpen Alaska LLC guide →
ArizonaOpen Arizona LLC guide →

More Alaska and Arizona comparisons

More Alaska vs ...

More Arizona vs ...

Sources

Filing fee: www.commerce.alaska.gov/web/Portals/5/pub/08-484.pdf · verified April 21, 2026
Alaska Articles of Organization (form 08-484) instructions, citing AS 10.50.075: Filing Fee $250.00 for a domestic LLC. Same fee online and by mail. Online filings are immediate; hardcopy filings take 10 to 15 business days.
Expedited filing: www.commerce.alaska.gov/web/cbpl/Corporations/CorpFormsFees.aspx · verified April 21, 2026
Alaska Corporations Section does not offer a separate expedited service tier. Online filings post immediately; there is no faster paid option.
Foreign LLC registration fee: www.commerce.alaska.gov/web/Portals/5/pub/08-497.pdf · verified April 21, 2026
Certificate of Registration for a Foreign Limited Liability Company (form 08-497) under AS 10.50.615: filing fee $350.00.
Annual report fee: www.commerce.alaska.gov/web/cbpl/Corporations/BiennialReportsFAQs.aspx… · verified April 21, 2026
Domestic LLC biennial report fee: $100.00 (or $137.50 after February 1 with $37.50 late penalty). Foreign LLC biennial report fee: $200.00 (or $247.50 late). Due January 2 every two years, based on formation year parity (odd-year or even-year cycle). Initial Report is a separate filing due within 6 months of formation with no fee.
Operating agreement requirement: www.commerce.alaska.gov/web/Portals/5/pub/08-484.pdf · verified April 21, 2026
Form 08-484 instructions: members of an LLC may adopt an operating agreement but the State does not require it to be filed. Alaska Statutes Title 10 Chapter 50 does not require a written operating agreement.
Online filing portal: www.commerce.alaska.gov/CBP/Corporation/startpage.aspx?file=CRFIL&enti… · verified April 21, 2026
Alaska Corporations Online Filing portal for domestic LLC Articles of Organization. Online filings post immediately to the state entity database.
Business name search: www.commerce.alaska.gov/cbp/main/search/entities · verified April 21, 2026
Alaska CBPL Corporations entity search. Use to confirm name availability before filing Articles of Organization.
Franchise tax: tax.alaska.gov/ · verified April 21, 2026
Alaska Department of Revenue Tax Division publishes no franchise tax on LLCs. The biennial report fee and the separate business license fee are administrative filing fees, not franchise taxes.
Corporate income tax rate: tax.alaska.gov/programs/programs/index.aspx?60380 · verified April 21, 2026
Alaska imposes a graduated corporate income tax with ten brackets, topping out at 9.4%. This applies to C-corporations and to LLCs that elect C-corp treatment, not to default pass-through LLCs.
Sales tax rate: tax.alaska.gov/ · verified April 21, 2026
Alaska has no statewide sales tax. Individual boroughs and municipalities may levy local sales taxes (typically 1% to 7.5%), but there is no state-level rate.
Certificate of Formation form: www.commerce.alaska.gov/web/Portals/5/pub/08-484.pdf · verified April 21, 2026
Official Articles of Organization (form 08-484, Rev. 01/07/2013) for a domestic Alaska LLC. Use for hardcopy filings; online filings use the Corporations Online Filing portal instead.
Naming rules: www.commerce.alaska.gov/web/cbpl/BusinessLicensing/SelectaBusinessName… · verified April 21, 2026
Alaska Division of Corporations guidance on selecting a business name, including the LLC naming rule that the name must contain limited liability company, L.L.C., or LLC.
Filing fee: azcc.gov/docs/default-source/corps-files/fee-schedules/fee-schedule-ll… · verified April 21, 2026
Arizona Corporation Commission Schedule of Fees - Limited Liability Companies (A.R.S. Title 29), Rev. 3.2026. 'Articles of Organization' = $50 regular, $85 expedited (the $85 figure is the total, i.e. $50 base + $35 expedited surcharge).
Expedited filing: azcc.gov/docs/default-source/corps-files/fee-schedules/fee-schedule-ll… · verified April 21, 2026
Regular expedited processing for Articles of Organization totals $85 ($35 surcharge on top of the $50 base fee) and is generally completed within 3-5 business days. Arizona also offers Same Day/Next Day Accelerated Processing on top of expedited: Next Day = $100, Same Day = $200, 2-Hour = $400. We record the cheapest expedited tier (the $35 surcharge, approx 5 business days) in the struct.
Foreign LLC registration fee: azcc.gov/docs/default-source/corps-files/fee-schedules/fee-schedule-ll… · verified April 21, 2026
Foreign Registration Statement = $150 regular, $185 expedited. We record the regular fee.
Operating agreement requirement: www.azleg.gov/ars/29/03105.htm · verified April 21, 2026
A.R.S. §29-3105 (Arizona Limited Liability Company Act) recognizes an operating agreement as the governing document among members and permits it to be oral, written, implied, or any combination. There is no statutory requirement that an LLC adopt an operating agreement, so this is recorded as not required.
Publication requirement: www.azleg.gov/ars/29/03201.htm · verified April 21, 2026
A.R.S. §29-3201(G) requires newspaper publication of the notice of LLC formation in the county of the statutory agent's street address for three consecutive publications within 60 days after filing the Articles of Organization, unless the statutory agent's street address is in a county with a population of more than 800,000, in which case the Commission inputs the notice into its public notice database. Only Maricopa County and Pima County exceed that population threshold, so LLCs with statutory agents in those two counties are exempt (covering roughly 75% of Arizona's population). LLCs in the remaining 13 counties must arrange publication; typical newspaper cost is $60-$120.
Franchise tax: azdor.gov/forms/corporate-income-tax-highlights · verified April 21, 2026
Arizona has no franchise tax on LLCs or corporations. The Arizona Department of Revenue levies only a corporate income tax (4.9% on C-corp taxable income, $50 minimum) and the Transaction Privilege Tax (a gross-receipts-style sales tax at 5.6% statewide plus local rates), neither of which functions as a traditional franchise tax.
Corporate income tax rate: azdor.gov/forms/corporate-income-tax-highlights · verified April 21, 2026
Arizona corporate income tax is a flat 4.9% of Arizona taxable income (A.R.S. §43-1111) with a $50 minimum tax. LLCs are pass-through by default and do not owe corporate income tax unless they elect to be taxed as a C-corp. Recorded here for the maxCorporateRate informational field.
Sales tax rate: azdor.gov/business/transaction-privilege-tax · verified April 21, 2026
Arizona's statewide Transaction Privilege Tax (TPT) rate is 5.6%. TPT is technically a tax on the vendor's privilege of doing business rather than a consumer sales tax, but it functions as the state's sales tax. Counties and municipalities add their own TPT rates, with combined effective rates commonly ranging 7.5% to 11.2% across Arizona. Only the 5.6% statewide rate is recorded in salesTaxRate.
Business name search: arizonabusinesscenter.azcc.gov/businesssearch · verified April 21, 2026
The Arizona Corporation Commission retired the legacy eCorp system on January 12, 2026 and replaced it with the Arizona Business Center (ABC). The ABC portal hosts the current public business entity search and online filing system. The previous ecorp.azcc.gov URLs no longer resolve.
Online filing portal: arizonabusinesscenter.azcc.gov/homepage · verified April 21, 2026
Arizona Business Center is the ACC's official online business filing portal as of January 12, 2026. Articles of Organization, foreign registrations, and most maintenance filings are submitted here. Approval times are generally 12-15 business days for regular online filings, faster with the expedited surcharge.
Certificate of Formation name: www.azcc.gov/docs/default-source/corps-files/forms/l010-articles-of-or… · verified April 21, 2026
Form L010 - Articles of Organization (domestic LLC). Filers using the online Arizona Business Center portal complete an equivalent on-screen form. Instructions are published at azcc.gov as form L010i.
Annual report: www.azcc.gov/corporations/forms/llc-forms · verified April 21, 2026
Unlike Arizona corporations, Arizona LLCs do not file an annual report. The Arizona Corporation Commission's LLC forms page lists no annual report form for LLCs, and the LLC fee schedule does not include an annual report fee. This is confirmed by A.R.S. Title 29, Chapter 7, which imposes no annual report duty on LLCs.

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