As a consulting LLC in Arizona, understanding your tax obligations is crucial for financial health. This guide breaks down federal and Arizona-specific taxes, deductions, and deadlines for 2026, helping you optimize your tax strategy. Check out our guide on LLC registration in Arizona for step-by-step instructions. Let Lovie handle the complexities, so you can focus on growing your consulting business.
Arizona LLCs offer flexibility in tax structure. By default, a single-member LLC is taxed as a sole proprietorship, and a multi-member LLC as a partnership. However, you can elect to be taxed as an S-Corp or C-Corp for potential tax advantages. Our resource on how to register an LLC in Arizona breaks this down further. Consulting businesses often benefit from the S-Corp election to reduce self-employment tax.
Single-member LLCs pay self-employment tax (15.3%) plus income tax on all net profits, reported on Schedule C of the owner's personal tax return.
Deduct expenses related to the portion of your home exclusively used for your consulting business.
Deduct ordinary and necessary expenses, such as software, travel, marketing, and client meals. Deduct one-half of your self-employment tax from your gross income.
Pay estimated federal income tax and self-employment tax.
Pay estimated Arizona income tax. File and pay Arizona TPT.
Start your formation with Lovie — $499 one-time, state filing fee included.
State-specific formation guides, cost breakdowns, compliance checklists, and expert comparisons — updated for 2026.