Incorporate in Arizona

For Incorporate in Arizona prices and State Filing Fees, please visit the costs page for Incorporating in Arizona.

Incorporating in Arizona is the first step in providing effective protection from personal liability and excessive taxation. There are many reasons to incorporate in Arizona; by incorporating, you are forming a separate, distinct legal entity that can be utilized to safeguard your personal wealth and assets by separating you, personally, from business liability, lawsuits, creditors and excessive taxation.

By forming a Corporation or LLC, you are forming a separate "person", a legal entity that can own property, pay taxes, and create income that is separate from yours. A corporation can sue and be sued on its own, thereby safeguarding the personal assets of the shareholders. This separation is known as “limited liability.” Other advantages include perpetuity of the business, as the business is not affected by the changing of the shareholders due to death, transfer of shares, sales, acquisitions, etc.

Another key advantage is that potential vendors, creditors, partners as well as investors in your business associate the “inc.” after your company’s name as an indication that they are dealing with a company that is viable and professionally run. Further, savvy investors will recognize the increased protection from personal liability and undue taxation that an incorporated business provides.

There are several ways to incorporate in Arizona: hire a lawyer to do the job for you (a very expensive option) or to use a professional business incorporation company, such as Companies Incorporated, the fastest and easiest way to form a corporation or LLC in Arizona.

Arizona Incorporation Rules

What is a corporate identifier (name ending)?

• The name that you choose for an Arizona corporate identity must be distinguishable from any other registered or authorized Arizona business entity and any reserved names on record. The name of the corporation must contain one of the following words as a corporate identifier:
• Association, "Corporation", "Company", "Incorporated", "Limited", "Assoc." or contain the abbreviation "Inc.", Corp.", "Co". or "Ltd."

LLC Corporate Identifiers

• Similarly, an Arizona limited liability company (LLC) must be distinguishable from any other registered or authorized Arizona business entity or any reserved names on record. The name of the LLC must contain one of the following words as a company identifier:
• “Limited Liability Company”, “Limited Company”, “L.C.”, “LC”, “LLC” or “L.L.C”.

Corporation Corporate identifiers

• The name that you choose for an Arizona corporation must be distinguishable from any other registered or authorized Arizona business entity and any reserved names on record. The name of the corporation must contain one of the following words as a corporate identifier:
• Association, "Corporation", "Company", "Incorporated", "Limited", "Assoc." or contain the abbreviation "Inc.", Corp.", "Co". or "Ltd."

Disallowed words in corporate names

• The corporate name can’t imply affiliation with a religious, charitable, veteran, or professional organization without that tie being officially certified in writing.
• The corporate name can’t be misleading, meaning you can’t have the phrase, “bank” in your corporate name if the company has not satisfied state requirements for incorporating as a bank.

Arizona Corporate Formalities

Annual reporting requirements for LLCs and Corporations

• Every corporation (corporation or LLC) must submit an annual report once a year. This annual report must be correctly filled out and submitted by the assigned due date or the corporation may be administratively dissolved or have its authority revoked by the State of Arizona. Penalties accrue on business corporation annual reports which are submitted late (after the due date). Corporations must use the annual report form prescribed by the Arizona Corporation Commission. No other format is allowed. The Commission will directly mail the corporation's annual report form to the official corporate address. Only forms distributed by the Commission are acceptable. Corporations should note any changes to their annual report and promptly return the form with the applicable fee.

Record Keeping

• The legislature establishes and maintains a system of accounts to be kept by public service corporations, or classify the corporations and establish a system of accounts for each class, and prescribe the manner in which accounts shall be kept. It may prescribe the forms of accounts, records and memoranda to be kept, including the records of the movement of traffic as well as the receipts and expenditures of money, and any other records necessary to carry out the provisions of this article. The commission may prescribe the accounts in which particular outlays and receipts shall be entered, charged or credited.

License requirements

• A corporation or limited liability company must be registered with the Arizona Corporation Commission and in good standing with that agency before submitting an application for a license. The corporation or limited liability company must remain in good standing in order to renew their license.

Arizona Business Certification

Arizona Small Business Services (SBS) provides information and resources for every stage of your business development. Small Business Services collaborates with state agencies and numerous business organizations to promote entrepreneurship among small, minority-, women-owned, and disadvantaged business enterprises.

1. Small business certification
2. Women owned business certification
3. Minority owned business certification
4. Disadvantaged business certification

Incorporation and Tax Information

Business inventory tax

• None

Corporate income tax

• The income tax rate is 9.0% of net income or $50, whichever is greater. The minimum tax is $50.

State Sales & Use tax

• 5.60%. Prescription drugs may be exempt. Local rates may also apply. Mining-nonmetal taxed 3.1%; transient lodging taxed 5.5%. Some cities tax food for home consumption.

Machinery Rate

• None

Unemployment Insurance

• The FUTA tax of 6.2 percent is also assessed on the first $7,000 in wages paid to each worker in a calendar year. When state taxes are paid on time, a tax credit of 5.4 percent is awarded to reduce the FUTA tax, regardless of the Arizona unemployment tax rate.

For more information on taxes in Arizona, you can visit www.revenue.state.az.us/.

Arizona Incorporate Quick Reference

Table Legend

• ACC = Arizona Corporation Commission
• SHDR = Shareholder
• M = LLC Member
• M/M = LLC Member/Manager
• D&O = Directors & Officers