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Flag of ArizonaFlag of Texas

Arizona vs Texas LLC

For the lowest cost over time, Arizona: about $257 less over five years.

Flag of ArizonaArizonaFlag of TexasTexas
All-in to start with usOur $40 fee with the EIN, the registered agent for the first year, and the state fee.$135$392
State filing fee$50$307
Typical approval time2–3 weeks3–5 business days
What the state asks each yearNoneFranchise tax report (no tax under threshold)
Yearly state cost, about$0$0
Total over 5 years, aboutFormation, then four years of registered agent ($45) and state fees. Excludes bookkeeping and IRS filings, which are the same in every state.$315$572
State income tax on wagesYesNone
Owners in the public formation documentCan be listedCan be listed
Newspaper publication after formationNoNo
Flag of Arizona

Arizona against Texas

Advantages

  • Cheaper to form: $50 state fee against $307 in Texas.

Disadvantages

  • Slower approval: usually 2–3 weeks.
  • Has a state income tax, though it normally only reaches income connected to the state.
Start in Arizona, $135
Flag of Texas

Texas against Arizona

Advantages

  • Faster approval: usually 3–5 business days, against 2–3 weeks.
  • No state income tax on wages.
  • A large economy, and a name that reads well on an invoice.

Disadvantages

  • Costs $257 more to form than Arizona.
Start in Texas, $392

Which one to choose

For the lowest cost over time, Arizona: about $257 less over five years.

If speed matters most, Texas is usually approved sooner (3–5 business days).

If your company will have staff, an office or a warehouse in one particular state, form it there: otherwise you register in that state anyway. Federal taxes and IRS filings are the same in every state.

General information about the states, not legal or tax advice. State fees change occasionally; the price at checkout is the price you pay.

Arizona or Texas

Questions about this comparison

Is a Arizona or a Texas LLC cheaper?

Arizona is cheaper to form: $135 all-in with us, against $392. Each year after, Arizona costs the state about $0 and Texas about $0, plus $45 for the registered agent.

Which is faster, Arizona or Texas?

Arizona usually approves an LLC in 2–3 weeks, Texas in 3–5 business days. We file within 48 hours of payment in either state.

Can a non-US resident form an LLC in Arizona or Texas?

Yes, in both. Neither state asks for citizenship or residency, and the registered agent we include provides the in-state address. The EIN is included without an SSN.

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