Arizona LLC and INC annual filing requirements

Arizona LLC Annual Filing Requirements

The Arizona LLC annual requirements will be applicable only after you have registered your company. The annual requirements for a limited liability company may be different from that of a corporation or any other business structure. The annual requirements are governed by 2019 Arizona Revised Statutes. The essence of fulfilling the annual requirements lies in the fact that it will ensure your company enjoys a good standing with the state. If you start a limited liability company in this state then the important annual requirements are categorized as under.

No Arizona LLC Annual Report

One of the first annual requirements for an LLC in any state is that of an annual report. Unlike other states, there is no requirement of an Arizona annual report. It simply means that if you form an Arizona limited liability company then you don’t need to file any annual reports with the state.

Arizona LLC Taxes

There are different forms of LLC taxes in Arizona and filing of the same is important towards ensuring annual compliance. The state taxes are governed by the 2019 Arizona Revised Statutes, Title 42 – Taxation. A limited liability company has a tax status of a pass-through entity by default. Hence, the responsibility of filing taxes passes through from the LLC itself to the individual members of the company. Thus, the LLC doesn’t pay income taxes, but their members have to file the individual tax return. The members of an LLC will be taxed at a rate of 15.3 percent. If you have elected S Corporation Status for your LLC then you will be taxed at 4.9 percent.

Arizona Employer Taxes

One of the important Arizona LLC annual requirements is that of filing state employer taxes. Here, the employer is considered to be the company. If your limited liability company has employees then pursuant to the Internal Revenue Code, you will be required to withhold federal income tax from the wages you are paying to your employees. Apart from the federal tax, as an Arizona employer, you will be required to pay the following taxes.

• State Withholding Tax – As an employer, you must withhold Arizona income tax from your employees whose compensation is being given for any and all services provided within Arizona. The state income tax withholding is considered to be a percentage of your employee’s gross taxable wages pursuant to U.S. Code § 3401. In order to file the withholding LLC taxes in Arizona, you will need to register your Employee Identification Number (EIN) with the Arizona Department of Revenue (ADOR). The form used for this registration is known as the Arizona Joint Tax Application (Arizona Form JT-1). You can file this tax monthly, quarterly or annually depending on the amount of Arizona taxes withheld.
• Unemployment insurance (UI) tax – If you have employees in your company then you will be required to file unemployment taxes. This is also known as the state UI tax (SUTA) and is handled by the Arizona Department of Economic Security (DES). You will be able to register for LLC taxes in Arizona by filing an Arizona Joint Tax Application. This tax is normally filed on a quarterly basis.

Arizona Sales Tax (Transaction Privilege Tax)

Most states in the USA have certain common taxes like the sales tax. The sales tax is known as the Transaction Privilege Tax (TPT) in the state of Arizona. This is one of the important Arizona LLC annual requirements. This tax will be applicable on your company for the privilege of doing business in this state. It is important to note that there are certain business activities that will be subjected to the transaction privilege tax.

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Arizona Corporation Annual Filing Requirements

One of the top business structures is the corporation. If you have decided to incorporate in Arizona then there are different state requirements and regulations that you need to adhere to. The Arizona Corporation annual requirements are one of the most essential mandatory state obligations to be fulfilled. This includes knowing when to file the Arizona Corporation annual report. The annual requirements will be applicable for both domestic and foreign corporations. It is governed by the 2019 Arizona Revised Statutes, Title 10 – Corporations and Associations. Let’s look at the various annual requirements in detail.

Arizona Corporation Annual Report

The Arizona Revised Statutes requires all corporations as well as other associations registered with the state to file an Arizona annual report. If you incorporate a new company then unlike a limited liability company, your corporation will have to file the annual report pursuant to AZ Rev Stat § 10-1622 (2019). Normally, an annual report is considered to be a financial document. This report may contain detailed financial information about small and large corporations. Although, different states require corporations to provide particulars other than financial information as well.

What does it include and how to file it?

An Arizona annual report for corporations require the following information pursuant to AZ Rev Stat § 10-1622 (2019) –

• Name of the corporation and the state law under which it has been incorporated (Arizona)
• Address of its known place of business
• Name and address of its Arizona statutory agent
• Address of its principal office
• Name and address of the principal officers or directors
• Names of shareholders
• Brief description of nature of business
• Total number of authorized shares along with class and series
• Issued and outstanding shares
• Certificate of disclosure

What is the due date for filing?

Normally the due date for an annual report filing may depend on the entity structure and whether your corporation is a domestic or foreign entity. The 2019 Arizona Revised Statutes states that you need to file an Arizona Corporation annual report by the registration anniversary date. This means that the filing date for this report will not be the same for all corporations. You can find the due date for your corporation by checking your company’s record on the eCorp Search page. An Arizona annual report can be filed 30 days prior to the due date. The processing fee is $45 and if you opt for an expedited service then there will be an additional fee of $35.
If you have hired IncParadise as your Registered Agent for Arizona Corporation then you can take advantage of our entity management software. This software will help you to file the annual report on time, which is on or before the due date. This will ensure your company is in compliance with Arizona Corporation annual requirements.

Penalties if you fail to file

If your company or any corporation is unable to deliver the Arizona annual report within the time specified in AZ Rev Stat § 10-1622 (2019), you may be subjected to penalties. The penalty charged will be $9.00 per month. Your corporation will be sent a delinquency notice almost 90 days after the due date. Your company status will be changed to Pending Inactive. If you are unable to file an Arizona Corporation annual report 60 days after receiving the first delinquency notice then your corporation may receive a Notice of Pending Administrative Dissolution/Revocation.

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Arizona Corporation Taxes

When you incorporate in this state, you will have to ensure complete compliance with Arizona Corporation annual requirements. One such requirement is that of filing taxes. There are different forms of taxes in this state but it is not necessary that your company will be required to file all of them. As a corporation, one of the most important would be to file a federal corporate tax return (form 1120/IRS) on all your profits. This can be filed in the form of quarterly payments to the IRS. If you own stock in the corporation then you will be required to file individual income tax on your salary and bonus. Apart from these corporation taxes in Arizona, you may be required to file taxes on dividends. This is also known as double taxation.

Arizona Sales and Use Tax

One of the important Arizona Corporation annual requirements is that of filing sales and use tax. Most states in the USA have sales tax and use tax filed separately or together. This type of tax is based on business activity and location of a business. In the state of Arizona, the sales tax is also known as the state transaction privilege tax (TPT). The TPT rate or the corporation taxes in Arizona rate is 5.6 percent. This is a state sales tax rate and there is also a combined state and local sales tax rate of 8.38 percent. It is important to note that the use tax rate can vary from one county or city to another. For example: The use tax rate for Retail Sales in Apache Junction is 2.40 percent and is 3 percent in Coolidge.

Employee and Employer Taxes

As an employee in a corporation, the most important tax would be the individual income tax. If you are an employee and a shareholder or owner then you will also have to file taxes on the dividends earned on shares or stock. This also brings us to payroll taxes, which is another important type of corporation taxes in Arizona. The employers of a corporation have to withhold taxes from the employees being paid for any work done within this state. There is an exception though for remote workers.

Need any Assistance in Filing the Arizona Corporation Annual Report?

The Arizona LLC annual requirements or those for a corporation are different especially when it comes to filing taxes and annual reports. The annual report is one of the most important documents although LLC’s are not required to file. Taxes on the other hand have to be filed by both types of entity structures i.e., LLC and corporations.