Small Business & Entity Tax • Arizona (AZ)

Arizona LLC vs. S-Corp Tax Savings & Filing Fee Calculator (2026)

Calculate exact 15.3% self-employment tax savings with an IRS Form 2553 S-Corporation election in Arizona, factoring in the $50 AZ Articles of Organization fee and $0/yr report cost.

Arizona LLC vs. S-Corp Tax Inputs
Gross revenue minus ordinary deductible business expenses.
Arizona initial LLC filing fee: $50 | State income tax benchmark: 2.5%.
Estimated Annual Net Tax Savings (S-Corp)
$0 / yr
After payroll & AZ compliance costs
  • Standard Disregarded LLC SE Tax (15.3%): $0
  • S-Corp W-2 Reasonable Salary: $0
  • S-Corp Shareholder Distribution (0% SE Tax): $0
  • S-Corp Payroll Tax (15.3% on Salary Only): $0
  • Arizona Initial Filing / Annual Fee: $50 / $0/yr
  • Est. Arizona State Income Tax (2.5%): $0
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Arizona (AZ) Regional Benchmarks & Statutory Notes

Arizona Benchmark Metric 2026 Value Regional Context (West)
Skilled Trade Labor Cost Multiplier 0.98x National Avg Avg contractor billing rate: ~$82/hr
4,000 PSI Ready-Mix Concrete Benchmark $162 / cubic yard Local frost footing depth: 12 inches
Arizona LLC Filing & Annual Report Fee $50 initial / $0/yr Top state income tax benchmark: 2.5%
Residential Security Deposit Statutory Cap & Deadline 1.5x Rent / 14 Days Intense UV exposure demands UV-stable polyaspartic topcoats to prevent ambering.

Frequently Asked Questions: Arizona LLC vs. S-Corp Tax & Filing Fee Calculator

How much does it cost to start and maintain an LLC in Arizona?

In Arizona (AZ), the initial Articles of Organization state filing fee is $50, and the ongoing annual report / franchise compliance fee is $0 per year. The benchmark top state income tax rate is 2.5%.

At what profit level does an S-Corp make sense in Arizona?

Generally, once your net business profit exceeds $65,000–$80,000 per year in Arizona, the 15.3% Medicare and Social Security tax savings on shareholder distributions outweigh the ~$600/yr payroll software cost and $0 annual state fee.

What is considered a reasonable S-Corp salary?

The IRS requires S-Corp owner-employees to pay themselves W-2 wages commensurate with market rates for the services performed (commonly 40%–55% of net profit for solo service businesses, depending on role and hours).

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