Arizona is one of the states in the US that charges both individuals and corporations with a state income tax. No matter how much money you make, filing a tax return is a must if you live in Arizona. Arizona requires non-residents who make income to file a tax return as well.
Arizona requires Limited Liability Companies (LLCs) to file annual reports in addition to individual income tax returns. By the anniversary of its incorporation, LLCs must submit an annual report to the Arizona Corporation Commission. If the yearly report isn’t submitted by the deadline, there is a $45, plus $9, late fee.
Arizona treats LLCs as pass-through entities for taxation purposes when it comes to LLC taxes. This indicates that while the LLC does not pay taxes on its own, the LLC’s profits or losses are passed on to the individual members for inclusion on their individual tax returns. For LLCs that choose to be taxed as corporations, Arizona does have a corporate income tax.
Individuals can use the Arizona Department of Revenue’s website to file their forms for Arizona state taxes. As an alternative, taxpayers can print the necessary forms and instructions from the Department of Revenue’s website and mail their returns. Through its Volunteer Income Tax Assistance (VITA) program, the Department of Revenue also provides free assistance with tax preparation.
Taxable income, which is obtained by deducting permitted expenses from gross income, is used to assess a taxpayer’s tax obligation in Arizona. Arizona permits additional deductions for payments to some state-sponsored programs, such as the Arizona Public School Tax Credit, in addition to the federal tax code’s permitted deductions. In conclusion, you must submit a tax return whether you live in Arizona, are a resident there, or get income there as a non-resident. Additionally, LLCs are required to submit an annual report, and for tax reasons, LLC taxes are typically classified as pass-through entities. Taxpayers in Arizona have the option of filing their state taxes online or by mail, and the amount of tax they owe is determined by their taxable income following deductions.
Yes, all business entities registered with the Arizona Corporation Commission must have a registered agent. For the purpose of receiving legal and tax documents on behalf of the company, the registered agent must have a physical location in Arizona and be accessible during regular business hours.