Many states require an annual report or filing to be made for Limited Liability Companies (LLCs). As of this writing, in Delaware an annual report and business entity tax charged each year. The minimum fee is three hundred dollars ($300). Similarly in Nevada an annual filing fee of $150 and a $200 business license registration fee is required. Unlike these states, Arizona provides an ongoing incentive to have a LLC registered in Arizona because there is no annual fee required.
There is no annual report filing required either. This provides two great benefits. First, with no annual report you don't have to set reminders, find the forms, or take the time to fill out an annual report. This means you can focus on running your business and not worry about such operational inconveniences and details. Secondly, the ongoing cost of having an LLC, doing business or not, is much cheaper than most states. With annual fees running hundreds of dollars per year, the savings add up over the life of an LLC. Thus, Arizona can be an attractive place to register a LLC.