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

Arizona is cheaper at formation ($50) than Delaware ($110). Ongoing costs are also different: $100 vs $400 per year. Total over three years: $350 vs $1,310.

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

Yes, but your Delaware business will almost certainly need to register as a foreign LLC in Delaware too, which means paying Delaware's foreign registration fee and any ongoing Delaware obligations on top of the Arizona 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 Arizona vs Delaware?

Arizona online: 14 business days; Delaware online: 10 business days. Arizona offers paid expedite from $35. Delaware offers paid expedite from $100.

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

Arizona: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Delaware: state income tax applies to member-level pass-through income, plus a $300 minimum entity-level 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. Arizona and Delaware 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 Arizona or Delaware 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. Delaware 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 Arizona or Delaware 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.

Arizona vs Delaware LLC comparison

Arizona charges $50 to form an LLC; Delaware charges $110. 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 $960 less in total state fees than Delaware. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

Delaware imposes an entity-level annual tax on every LLC ($300 minimum). Arizona does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.

On speed, Delaware 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

Arizona $50

Delaware $110

Arizona saves $60

Year 1 total estimate

Arizona $150

Delaware $510

Arizona saves $360

Ongoing per year

Arizona $100

Delaware $400

Arizona saves $300

3-year total

Arizona $350

Delaware $1,310

Arizona saves $960

Key differences at a glance

Arizona costs $60 less to form ($50 vs $110).
Arizona is $300 per year cheaper to maintain ($100 vs $400).
Delaware imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Arizona does not.
Arizona requires newly formed LLCs to publish a formation notice in local newspapers; this can add $50 to $1,800 depending on county.

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 Arizona

No entity-level franchise or LLC tax

Only Delaware

No state sales tax
No publication requirement

Both states

Online filing
Paid expedited tier
No annual report
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.

Arizona Delaware

Year 1

$150

$510

Year 2

$250

$910

Year 3

$350

$1,310

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 Arizona, business operates there No foreign LLC registration needed. You pay Arizona fees only.	$150	$100	$350
You live in Delaware, business operates there No foreign LLC registration needed. You pay Delaware fees only.	$510	$400	$1,310
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
Non-resident forming in Delaware with operations elsewhere You pay Delaware's fees plus a typical home-state foreign LLC registration of about $200 per year.	$710	$600	$1,910

Arizona vs Delaware: full comparison

Dimension	Arizona	Delaware
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	14 business days	10 business days
Expedited option Paid fast-track filing	$35	$100
Annual report Required in addition to tax	None	None
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	$300 minimum
State income tax On pass-through LLC income at member level	Yes	Yes
Publication requirement Newspaper publication after formation	Required	No
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	$150	$200
State sales tax General statewide rate	5.6%	None

Taxes in Arizona and Delaware

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.

Arizona tax

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

Delaware tax

$300 minimum annual tax (flat basis). State income tax applies to member-level pass-through income. Corporate rate 8.7%.

Ongoing compliance

The recurring filings each state requires after formation.

Arizona

No annual state filing. Registered agent required in Arizona.

Delaware

Annual $300 tax, due 06/01. No separate annual report. Registered agent required in Delaware.

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.

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.

Delaware

Check business-name availability on the Delaware entity search.
Appoint a registered agent with a physical Delaware street address.
File Certificate of Formation of Limited Liability Company for $110.
Wait for approval. Online typically 10 business days. Paid expedite from $100.
Adopt an operating agreement (recommended, not required by Delaware statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
Pay the $300 annual Delaware LLC tax when it comes due.

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 Arizona and Delaware (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 Arizona or Delaware 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

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

Delaware Division of Corporations

Website: corp.delaware.gov
Phone: (302) 739-3073
Mail: 401 Federal Street, Suite 4, Dover, DE 19901
Hours: 8:00 AM to 4:30 PM Eastern, 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

Delaware Division of Revenue

Website: revenue.delaware.gov
Phone: (302) 577-8200
Mail: 820 N. French Street, Wilmington, DE 19801
Hours: 8:30 AM to 4:00 PM Eastern, Monday to Friday

Frequently Asked Questions

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

Arizona is cheaper at formation ($50) than Delaware ($110). Ongoing costs are also different: $100 vs $400 per year. Total over three years: $350 vs $1,310.
Can I form an LLC in Arizona if I live in Delaware?

Yes, but your Delaware business will almost certainly need to register as a foreign LLC in Delaware too, which means paying Delaware's foreign registration fee and any ongoing Delaware obligations on top of the Arizona 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 Arizona vs Delaware?

Arizona online: 14 business days; Delaware online: 10 business days. Arizona offers paid expedite from $35. Delaware offers paid expedite from $100.
Which state has lower taxes for an LLC, Arizona or Delaware?

Arizona: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Delaware: state income tax applies to member-level pass-through income, plus a $300 minimum entity-level 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. Arizona and Delaware 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 Arizona or Delaware 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. Delaware 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 Arizona or Delaware 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

ArizonaOpen Arizona LLC guide →
DelawareOpen Delaware LLC guide →

More Arizona and Delaware comparisons

More Arizona vs ...

More Delaware vs ...

Sources

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.
Filing fee: corpfiles.delaware.gov/AugustFee2024.pdf · verified April 21, 2026
Delaware DoS Division of Corporations Fee Schedule, revised August 1, 2024. 'Formation – domestic' under Limited Liability Companies = $110.00 state filing fee.
Expedited filing: corpfiles.delaware.gov/AugustFee2024.pdf · verified April 21, 2026
Same Day $100, 24-Hour $50, Priority 2 (2-hour) $500, Priority 1 (1-hour) $1,000. We report 24-hour as the default expedited tier.
Annual report fee: delcode.delaware.gov/title6/c018/sc11/index.html · verified April 21, 2026
6 Del.C. §18-1107(b): annual tax of $300 for every domestic and foreign LLC. §18-1107(c): due June 1 each year. §18-1107(e): $200 late penalty plus 1.5% interest.
Franchise tax: delcode.delaware.gov/title6/c018/sc11/index.html · verified April 21, 2026
Flat $300 annual LLC tax under 6 Del.C. §18-1107. Not a share-based franchise tax like Delaware corporations; we classify it as a flat franchise-style tax for compare purposes.
Operating agreement requirement: delcode.delaware.gov/title6/c018/sc01/index.html · verified April 21, 2026
6 Del.C. §18-101(9) recognizes oral, written, or implied LLC agreements. No statutory requirement that the agreement be written or filed, so recorded as not-required.
Foreign LLC registration fee: delcode.delaware.gov/title6/c018/sc10/index.html · verified April 21, 2026
Foreign LLC registration filing fee. Cross-check against the practitioner-facing fee schedule before publishing.
Business name search: icis.corp.delaware.gov/eCorp/EntitySearch/NameSearch.aspx · verified April 21, 2026
Delaware eCorp entity search. Confirm name availability before filing.
Sales tax rate: revenue.delaware.gov/ · verified April 21, 2026
Delaware has no general state sales tax. Gross receipts tax may apply to some business activities.
Corporate income tax rate: revenue.delaware.gov/ · verified April 21, 2026
Delaware corporate income tax rate is 8.7%. Applies to C-corp income, not LLCs by default, but note here for completeness.

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