Delaware LLC vs Arizona LLC (2026)
Written for owners based in Delaware.
Verdict: for most owners, form where the business is based
Nothing starts cheaper: Arizona's Articles of Organization are $50, there is no annual report, and no franchise tax follows. That number is incomplete, though. Arizona law makes an LLC whose statutory agent sits outside Maricopa or Pima County publish notice three consecutive times in a county newspaper at the paper's own rate, which Arizona never publishes. Delaware asks $110 up front and then $400 a year with no proration, so even a December filing owes a full year. Run an Arizona LLC from Delaware and you add a $200 registration to that $400.
Based in Arizona? Read Arizona LLC vs Delaware LLC →
Compare Delaware LLC vs Arizona LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: October 5, 2026
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| Factor | Delaware | Arizona |
|---|---|---|
| Filing Fee | $110 | $50 |
| Processing Time | Not published by the state | Live queue, not fixed |
| Annual Report Fee | None ($400/yr entity tax instead) | None |
| Annual Report Due | None required | None required |
| State Income Tax | Yes | Yes |
| Anonymous LLC | Yes | No |
| Publication Requirement | No | Yes (Commission posts it free in Maricopa & Pima counties) |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $200 + registered agent ~$150/yr |
Full fee breakdown for either state: Delaware LLC cost and Arizona LLC cost. Owner privacy options for either state: Delaware anonymous LLC guide and Arizona anonymous LLC guide.
Business Climate: Delaware vs Arizona
| Factor | Delaware | Arizona |
|---|---|---|
| 5-year business survival rate | 48.1% (#37 of 51) | 52.1% (#22 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +2.5% YoY (#33 of 51 by volume) | +23.9% YoY (#13 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Delaware vs Arizona
Delaware
Arizona
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Delaware charges $110 to form an LLC, while Arizona charges $50. Arizona is $60 cheaper upfront. The cost that usually gets overlooked: if you form in Arizona but operate in Delaware, you must also register as a foreign LLC in Delaware (a $200 filing) and maintain a registered agent in Arizona (typically around $150 per year). That puts the realistic first-year cost of the Arizona route at roughly $400, versus $110 for simply forming in Delaware. Speed isn't a basis for choosing between them: neither Delaware nor Arizona publishes a standard processing time, so any figure comparing the two is guesswork. Note that Arizona also requires the formation notice to be published within 60 days after the Commission files the Articles. If the statutory agent's street address is in a county of more than 800,000 people (currently Maricopa and Pima), the Corporation Commission posts the notice in its own database instead, free of charge. Everywhere else, the notice must run three consecutive times in a newspaper in that county, at a rate the newspaper sets (the state publishes no cost figure), which adds to the true formation cost.
Taxes: Delaware vs Arizona
Both Delaware and Arizona levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in Arizona doesn't change what a Delaware-based owner pays. Arizona levies a personal income tax (flat 2.5%). Delaware LLCs owe a flat $400 annual LLC tax (no report required).
Privacy & Asset Protection
Delaware, your home state, actually offers more formation privacy than Arizona: Delaware allows anonymous LLC formation, while Arizona requires owner or manager information on public filings. The Articles of Organization must list members (member-managed) or managers (manager-managed), a public record. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal. From a privacy standpoint there's no reason for a Delaware-based business to form in Arizona.
Annual Maintenance Costs
Delaware LLCs file no annual report at all, and Arizona LLCs file no annual report at all. If you form in Arizona while operating in Delaware, you maintain filings in both states, though neither state asks for a recurring report, and pay an Arizona registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Arizona route to roughly $150 a year, versus about $400 to keep a domestic Delaware LLC in good standing. The tax inside those totals: Delaware LLCs owe a flat $400 annual LLC tax (no report required).
When Arizona Actually Makes Sense
Forming in Arizona makes sense in a few specific situations: your business genuinely operates in Arizona, with a real office, employees, or property there, or you're relocating to Arizona in the near future. For a typical small business based in Delaware, none of these usually apply. Registering an Arizona LLC to do business back home means $200 in Delaware foreign-registration fees, on top of Arizona's $50 formation fee, while Delaware itself never asks for an annual report at all. Delaware already allows anonymous formation, so the privacy argument for Arizona doesn't apply to a Delaware-based owner. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- Delaware statute: 6 Del. C. § 18-1107(b) (annual LLC tax)
- Arizona statute: A.R.S. 29-3201(G) (newspaper publication of notice)
- corp.delaware.govDelaware Division of Corporations: business entity filings
- corpfiles.delaware.gov/AugustFee2024.pdfDelaware LLC filing fees
- azcc.gov/corporationsArizona Corporation Commission: business entity filings
- azcc.gov/docs/default-source/corps-files/fee-schedules/fee-schedule-llcs.pdfArizona LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.