Arizona LLC Annual Report 2026: What You Need To Know As A Business Owner

In Arizona, you’re not obligated to submit an Annual Report for your LLC or pay any yearly reporting fees.

While most states have ongoing yearly filing obligations, Arizona is one of the few that don’t. This makes compliance much easier for LLC owners.

Arizona LLCs Are Exempt From Annual Report Filings

All domestic corporations and foreign corporations authorized to operate in Arizona must file an Annual Report with the ACC. This is under the Arizona Revised Statutes (A.R.S. § 10-1622).

However, there is no Arizona LLC Annual Report requirement for domestic or foreign LLCs. This is outlined in the Arizona Limited Liability Company Act (Title 29, Chapter 7). Therefore, once your LLC is approved by the ACC, you don’t have to submit yearly renewal documents to stay active.

Still, business owners (Members) who live in Arizona have to pay state income tax on their share of the company’s profits. This is because LLCs are considered pass-through entities.

Additionally, depending on your LLC’s tax classification, you may have state or federal filing requirements. If your business sells taxable goods or services, you may also need a Transaction Privilege Tax (TPT) License. In this case, you will be obligated to remit TPT to the Arizona Department of Revenue (ADOR).

Your business might also need to renew certain professional, city, or industry-specific licenses to stay compliant.

Understanding The Transaction Privilege Tax & License

In Arizona, the Transaction Privilege Tax (TPT) is considered the sales tax. It’s charged to businesses for the privilege of carrying out taxable activities in the state.

Your LLC will need to get a TPT License from the ADOR to collect and pay TPT. The TPT relates to 16 of the 17 taxable business classifications. These are listed in Arizona Revised Statutes Title 42, Chapter 5 (A.R.S. §§ 42-5061–42-5076).

Here are some examples of taxable business classifications:

• Retail sales.
• Restaurant and bar services.
• Hotel and lodging (Transient occupancy).
• Contracting and construction.
• Leasing and rental of personal property.
• Amusements and entertainment.
• Utilities and telecommunications.

You need a valid TPT License number before starting any taxable business activity in Arizona. This is in line with the A.R.S. § 42-5005(A) guidelines.

Two jurisdictions dictate which TPT License will be issued:

• State-level: The fee for this one-time registration cost is $12 per LLC location.
• Municipal-level: The fee depends on the city or county of each LLC location. This one will need to be renewed yearly.

For more details on this process, read my guide: How To Get A TPT License For An Arizona LLC.

Arizona LLC Business Licenses & Permits

LLCs are not obligated to get a statewide general business license in Arizona. Even so, depending on your industry or company location, your business may need specialized or municipal licenses.

Here are some examples of additional licenses or registrations:

• Professional licenses (For contractors, accountants, healthcare providers).
• Health and safety permits.
• Local city or county business registrations.

The majority of professional and municipal licenses need to be renewed yearly and may include renewal fees.

For more details on business licenses, check out my guide: How To Get A Business License For An Arizona LLC.

Frequently Asked Questions