Rental property LLCs in Arizona

Local rental rules come first

Every county: register the rental with the assessor. The owner of residential rental property must keep its information on file with the assessor in the county where the property sits, and update it within ten days of a change. If a limited liability company owns the property, the file lists the name, address and phone of its managing or administrative member. An owner who lives outside Arizona must also record an Arizona statutory agent, and a rental "shall not be occupied" while the information isn't on file. The assessor may charge up to $10 for each registration or change (A.R.S. § 33-1902(A)–(C), (I)). Registering is a separate process from the deed's affidavit (Maricopa County Assessor).

Short-term rentals (under 30 days): state law sets the frame. A city or town can't prohibit them, but it may require a local permit or license (fee capped at its actual cost or $250, whichever is less), emergency-contact information, notice to neighbors, the permit number in every advertisement, and liability coverage of at least $500,000. Counties have a parallel statute for unincorporated areas (A.R.S. § 9-500.39(A), (B)(4)–(8); § 11-269.17).

Phoenix. Every short-term rental needs a permit from the Planning & Development Department, applied for in the SHAPE PHX portal. The fee is $250 for each initial and renewal permit. The submittal list includes a transaction privilege tax (TPT) license from the Arizona Department of Revenue (ADOR) and an update of your rental status with the Maricopa County Assessor. The owner sends a Notice of Intent by certified mail to adjacent neighbors and to registered homeowners and neighborhood associations within 600 feet, and displays the permit number on each advertisement (phoenix.gov Short-Term Rental Registry).

Scottsdale. A rental of less than 30 days needs an annual city license for each property, $250 a year, after you get a TPT license. Within 30 days of licensing you must notify adjacent neighbors, and the property needs liability coverage of at least $500,000. The city says it is illegal to rent before the property is registered with the Maricopa County Assessor. Rentals of 30 days or longer don't need this license (scottsdaleaz.gov Information for Owners and Operators; Ordinance 4566).

Tucson. I couldn't find a short-term-rental permit on the city's own site. The city says it requires business licenses (tucsonaz.gov Business License and Tax Information), and ADOR's Tucson profile lists a 10% occupational license tax rate on non-hotel short-term rentals under Ordinance 12215, effective March 1, 2026. Ask the city's License team before you list ((520) 791-4566).

Sedona. Every short-term rental unit needs its own annual city permit, and you need an ADOR TPT license before you advertise. If the owner is an entity, the application asks for its legal name and its statutory agent's contact information. The permit number goes in every listing, and the property needs liability insurance of at least $500,000. No permit is required for a rental of 30 days or longer. The city's pages quote the annual fee two different ways, so confirm it when you apply (sedonaaz.gov Property Owner Information, Permit Application Requirements and FAQs; City Code ch. 5.25).

Elsewhere in Arizona. Rental rules are local. ADOR says to check with the city or town where the property is for other business license requirements.

Rental tax: only rentals under 30 days

The transaction privilege tax (TPT) on residential rentals ended January 1, 2025. ADOR says owners "should no longer collect and remit any city transaction privilege tax" on stays of 30 days or more (Laws 2023, ch. 204; A.R.S. § 42-6004(H)).

• Rentals of 30 days or more: no TPT license is needed for periods from 2025 on. ADOR cancelled licenses that carried only the residential-rental code, but unpaid tax for earlier periods is still owed and can be audited.
• Rentals under 30 days: the income is taxed as transient lodging, and ADOR says the TPT license number must appear on any advertising. File a $0 return for any period you don't rent (ADOR Short-Term Lodging; A.R.S. § 42-5070).

What the LLC protects, and what it doesn't

Arizona's LLC law says: "A member or manager is not personally liable, directly or indirectly, by way of contribution or otherwise, for a debt, obligation or other liability of the company or for the acts or omissions of any other member, manager, agent or employee of the company, solely by reason of being or acting as a member or manager." (A.R.S. § 29-3304(A)). The protection is for liability that comes solely from being a member or manager. Not observing formalities "is not a ground for imposing liability on a member or manager" (§ 29-3304(B)).

• Guarantees still bind you. A personal guarantee you sign for a lender is your own promise.
• Your own acts are yours. A repair you make yourself, or your own negligence, isn't shielded by the LLC; ask an Arizona attorney.
• It isn't insurance. The LLC still needs coverage that pays claims and defense costs.
• Your personal creditors are limited. For a judgment against a member personally, a charging order is "the exclusive remedy" for reaching that member's interest in the LLC (A.R.S. § 29-3503(E)). Ask an Arizona attorney how that works for a single-member LLC.

One LLC, or one per property?

Separate LLCs keep one property's judgment away from the others, at $50 plus a publication notice each. Arizona's LLC Act (A.R.S. §§ 29-3101 to 29-4202) has no section that lets an Arizona LLC create series; the only series it mentions are foreign series registering to do business in Arizona (A.R.S. §§ 29-3102, 29-3902, 29-3903). So for Arizona property, separate properties means separate LLCs. The full tradeoff, with a worked example: Should you have a separate LLC for each rental property?. Other states: Mississippi · Alabama · Arkansas · Indiana · Louisiana · Tennessee.

Form it where the property is, or register there

A foreign LLC "may not do business in this state" until it registers with the Commission, and it can't maintain a lawsuit in Arizona until it does. Skipping registration doesn't make its contracts invalid or waive its members' liability limit (A.R.S. § 29-3902). The registration fee is $150. You need an Arizona statutory agent, a certified copy of your home-state organizational documents, and proof the LLC existed in its home state within 60 days before you file (A.R.S. §§ 29-3115, 29-3213, 29-3903).

Is renting out property "doing business"? A.R.S. § 29-3905 lists what isn't, including "Owning, without more, property," creating or acquiring mortgages, and "holding, protecting or maintaining property." Leasing to tenants isn't on that list, so assume you must register and confirm with an Arizona attorney. If you hold a series LLC from another state, Arizona registers a foreign series, and its Arizona name must include the word "series" (A.R.S. §§ 29-3112(G), 29-3903(B)).

What it costs the state

• Articles of Organization: $50 (ACC fee schedule; A.R.S. § 29-3213(A)(1))
• Name reservation: optional, $10; it holds the name for 120 days and "is not required" (ACC fee schedule; ACC FAQ)
• Faster review, optional and added to the $50: $35 expedite (the ACC estimates 3-5 days instead of 14-16), $100 next day, $200 same day, $400 within two hours. Filing with the $35 expedite totals $85 (ACC FAQ; ACC fee schedule)
• Publication notice: required once; the ACC fee schedule lists no charge for the Commission's website posting (see below)
• Annual report: none. "LLCs are not required to file annual reports" (ACC FAQ)
• Foreign LLC registration: $150 (A.R.S. § 29-3213(A)(2); ACC fee schedule)
• Changing the statutory agent or principal address: $5 (ACC fee schedule)
• EIN: free from the IRS

Compare services: LLC services compared.

Forming the LLC, in order

1. Pick a name. It must contain "limited liability company," "limited company," or "L.L.C.," "LLC," "L.C." or "LC," and can't contain "association," "corporation" or "incorporated" (A.R.S. § 29-3112). Reserving it first is optional.
2. Name a statutory agent with an Arizona street address, who must accept the appointment in writing. The LLC can't be its own agent (A.R.S. § 29-3115; ACC instructions).
3. File Articles of Organization with the Arizona Corporation Commission, not the Secretary of State ($50). They state the principal address (which can be the agent's address), the agent, and whether the LLC is member-managed or manager-managed, with names and addresses (A.R.S. § 29-3201). The Commission says names and addresses on filed documents are public record (ACC FAQ).
4. Publish the notice within 60 days after the Commission files the articles (A.R.S. § 29-3201(G)). If your statutory agent's street address is in Maricopa or Pima county, the Commission posts the notice on its website. Outside those counties you publish in a newspaper, and the Commission says not to publish until it approves the filing (ACC instructions).
5. Write an operating agreement. It isn't filed with the Commission, but the LLC must keep a copy in its records (ACC FAQ).
6. Get an EIN and open the LLC's bank account.
7. Register the rental with the county assessor, get the TPT license for short-term rentals, and apply for any city permit (above).

Forming the LLC doesn't move your deed

Putting your rental in the LLC takes a new deed from you to the LLC. A conveyance of land must be in writing, signed and delivered by the grantor, and acknowledged (A.R.S. § 33-401(A)–(B)). An unrecorded instrument gives no notice to later purchasers or encumbrance holders who pay value without notice, so the deed is recorded with the county recorder where the property sits (§ 33-411(A)).

• Name the LLC fully. The deed must set out an LLC grantee's name, address and state of organization, though a deed's validity isn't affected if it doesn't (§ 33-401(C)).
• No transfer tax to budget for. Arizona's constitution bars the state and its counties, cities and other local governments from imposing "any new tax, fee, stamp requirement or other assessment" on transferring real property, except those in place on December 31, 2007 (Ariz. Const. art. 9, § 24). The recorder collects a $2 real estate transfer fee that is included in its recording fee, $30 per instrument (A.R.S. §§ 11-1132, 11-475(A)(1); Maricopa County Recorder).
• Affidavit or exemption. The recorder must refuse a deed without a complete affidavit of legal value (the recorder's form is the Affidavit of Property Value) unless the deed notes an exemption (A.R.S. § 11-1133(C)). A transfer "[f]rom a member to its limited liability company" for no or nominal consideration is exempt from the affidavit and fee, and the deed must note the specific exemption on its face (§ 11-1134(B)(7)(c), (C)). The recorder can't advise which code fits, so ask your title company or attorney.
• Re-register the rental. Update the assessor's registration within ten days of the change. The statute sets a civil penalty of $1,000 plus $100 a month for newly acquired rental property that isn't registered (§ 33-1902(A), (E)).

Then update leases, rent payment instructions, deposits and insurance, and ask each city and ADOR how to put permits and tax licenses in the LLC's name.

Check the mortgage before you transfer

Federal law lets a lender enforce a due-on-sale clause, and a transfer to an LLC isn't one of the exceptions for 1–4 unit homes (12 U.S.C. § 1701j-3(d)). Fannie Mae allows a transfer to an LLC the borrower controls for loans it acquired on or after June 1, 2016 (Fannie Mae Servicing Guide D1-4.1-02). Ask your servicer in writing.

Insurance and taxes

Tell your insurer before title moves. For federal income tax, a single-member LLC is disregarded unless it elects corporate treatment (IRS). Arizona follows that classification: for A.R.S. title 43 (Taxation of Income) and title 23, chapter 4, an LLC and its members are taxed as a partnership, a corporation or a disregarded entity, as determined under the Internal Revenue Code (A.R.S. § 29-3123). The rental tax rules above are separate.

Keeping each LLC in good standing

• No annual report. Keep a statutory agent and a principal address on file. The Commission may start administrative dissolution if an LLC lacks either for 60 consecutive days, doesn't pay a fee or penalty within 60 days of its due date, or doesn't answer the Commission's interrogatories. It sends notice first, and the LLC has 60 days to cure (A.R.S. § 29-3708(A)–(C)). Change the agent or address with a Statement of Change (ACC FAQ).
• A dissolved LLC "may not carry on any activities except as necessary to wind up" (§ 29-3708(D)). It can apply for reinstatement within six years; the fee is $100, plus the fees and penalties that came due meanwhile (§§ 29-3709, 29-3213(A)(12)).
• Update the county assessor within ten days of any change, renew city permits (Scottsdale's and Sedona's are annual, and Phoenix charges a renewal fee), and file TPT returns on time.

Before you file or transfer a property

• Attorney or title company: the deed, which exemption to claim, series vs. separate LLCs
• Servicer: is the transfer allowed?
• Insurance agent: named insured, coverage
• CPA: federal and state income tax, TPT on short-term stays
• County assessor and city: rental registration, short-term rental permit, business license
• Calendar: publication within 60 days of approval; city permit renewals; TPT returns

Form it with Corpus

Corpus prepares and files your Articles of Organization and includes the first year of registered-agent service. The Arizona page shows the current price. Corpus isn't a law firm: the deed, the loan, the county rental registration and city permits are separate steps.

Sources

• Arizona LLC Act, A.R.S. Title 29, ch. 7 (azleg.gov, read 2026-10-23): § 29-3304 https://www.azleg.gov/ars/29/03304.htm ; § 29-3503 https://www.azleg.gov/ars/29/03503.htm ; § 29-3201 https://www.azleg.gov/ars/29/03201.htm ; § 29-3213 https://www.azleg.gov/ars/29/03213.htm ; § 29-3112 https://www.azleg.gov/ars/29/03112.htm ; § 29-3113 https://www.azleg.gov/ars/29/03113.htm ; § 29-3115 https://www.azleg.gov/ars/29/03115.htm ; § 29-3102 https://www.azleg.gov/ars/29/03102.htm
• Foreign LLCs and dissolution: § 29-3902 https://www.azleg.gov/ars/29/03902.htm ; § 29-3903 https://www.azleg.gov/ars/29/03903.htm ; § 29-3905 https://www.azleg.gov/ars/29/03905.htm ; § 29-3708 https://www.azleg.gov/ars/29/03708.htm ; § 29-3709 https://www.azleg.gov/ars/29/03709.htm ; § 29-3123 https://www.azleg.gov/ars/29/03123.htm
• A.R.S. § 33-1902, rental registration: https://www.azleg.gov/ars/33/01902.htm ; §§ 33-401, 33-411: https://www.azleg.gov/ars/33/00401.htm ; https://www.azleg.gov/ars/33/00411.htm
• A.R.S. §§ 11-1132, 11-1133, 11-1134, 11-475: https://www.azleg.gov/ars/11/01132.htm ; https://www.azleg.gov/ars/11/01133.htm ; https://www.azleg.gov/ars/11/01134.htm ; https://www.azleg.gov/ars/11/00475.htm ; Ariz. Const. art. 9, § 24: https://www.azleg.gov/const/9/24.htm
• A.R.S. § 9-500.39: https://www.azleg.gov/ars/9/00500-39.htm ; § 11-269.17: https://www.azleg.gov/ars/11/00269-17.htm ; §§ 42-5070, 42-6004: https://www.azleg.gov/ars/42/05070.htm ; https://www.azleg.gov/ars/42/06004.htm
• ACC fee schedule, LLCs (rev. 3.2026): https://www.azcc.gov/docs/default-source/corps-files/fee-schedules/fee-schedule-llcs646a1cd0d6b24246ab2253aecbc3ab40.pdf?sfvrsn=debb38e6_5
• ACC FAQs: https://www.azcc.gov/faqs ; ACC Articles of Organization instructions (L010i): https://azcc.gov/docs/default-source/corps-files/instructions/l010i-instructions-articles-of-organization.pdf
• ADOR Residential Rental Guidelines: https://azdor.gov/business/transaction-privilege-tax/residential-rental-guidelines ; Short-Term Lodging: https://azdor.gov/business/transaction-privilege-tax/short-term-lodging ; Tucson profile: https://azdor.gov/model-city-tax-code/city-profile/tucson
• Maricopa County Assessor rental registration: https://mcassessor.maricopa.gov/page/residential_property/rental-registration ; Maricopa County Recorder: https://recorder.maricopa.gov/information/faqs.html ; https://recorder.maricopa.gov/recording/recording-fees.html
• Phoenix Short-Term Rental Registry: https://www.phoenix.gov/administration/departments/pdd/registration-licensing/short-term-rental-registry.html
• Scottsdale, Information for Owners and Operators: https://www.scottsdaleaz.gov/codes-and-ordinances/vacation-and-short-term-rentals/information-for-owners-and-operators
• Tucson, Business License and Tax Information: https://www.tucsonaz.gov/Departments/Business-Services-Department/Taxpayer-Assistance-Division/Business-License-and-Tax-Information
• Sedona: https://www.sedonaaz.gov/your-government/departments/community-development/vacation-rentals/property-owner-information ; https://www.sedonaaz.gov/your-government/departments-and-programs/community-development/short-term-rentals/property-owner-responsibilities ; https://www.sedonaaz.gov/your-government/departments/community-development/short-term-rentals/property-owner-information/permit-application-requirements ; https://www.sedonaaz.gov/your-government/departments/community-development/vacation-rentals/vacation-rentals-faqs
• 12 U.S.C. § 1701j-3 (Corpus official text): https://corpuslaw.us/code/2fc8c7eb-0b53-4b5a-821a-477c5d2baf63
• Fannie Mae Servicing Guide D1-4.1-02: https://servicing-guide.fanniemae.com/svc/d1-4.1-02/allowable-exemptions-due-type-transfer
• IRS single-member LLCs: https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-companies ; IRS, get an EIN: https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number