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Incorporate in Arizona
Is Arizona a good state for small businesses?
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Known for its beautiful Grand Canyon and rich cultural history, Arizona is a tempting place for many new entrepreneurs to start their new businesses.
Before diving in headfirst, reviewing the current business demographics in Arizona can give you a better idea of who finds success in this state.
As of 2023, there are 650,151 small businesses in Arizona. These small businesses make up 99.5% of all Arizona businesses.
Women own almost half of the businesses in Arizona, with 245,679 being solely women-owned and 36,169 being co-owned by both genders. While the growth rate of women-owned businesses in Arizona is low, women are dedicated enough to pursue and find success in this state.
Veterans own 41,008 businesses and co-own 6,297 with non-veterans in Arizona. There is a trend of veterans forming co-owned companies rather than taking on the task alone, as shown by the number of solely veteran-owned businesses decreasing from 41,155 in 2022.
Hispanic people own 124,759 businesses in Arizona and co-own 3,891. The number of Hispanic-owned companies is slowly increasing, creating new opportunities for Hispanic people looking to incorporate in Arizona.
Racial minorities own 195,171 and co-own 5,970 businesses in Arizona. While Arizona is not one of the top states for minority-owned companies, the number of minority-owned firms is increasing steadily.
See the full range of features, benefits, and pricing tailored to your needs.
Incorporate in Arizona with MaxFilings|
Business tax climate info stats
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|||||
|---|---|---|---|---|---|
| 14 | 2.50% | 4.90% | 5.60% | 5.30% | 8.38% |
| Overall rank | Individual income tax rate | Corporate income tax rate | State sales tax rate | Maximum local sales tax rate | Combined state & average local sales tax rate |
What are the advantages of incorporating in Arizona?
One of the best things about living and working in Arizona? The weather. It’s sunshine and warm temperatures almost all year long—perfect for those who love outdoor activities and for running businesses without the hassle of snow shovels or slippery ice.
Other benefits to incorporating in Arizona include:
Tax benefits
Arizona’s corporate tax rate is lower than many other states, which helps companies keep more of their earnings. Also, Arizona does not charge a franchise tax, a fee some states charge businesses just for operating. Arizona has tax exemptions for specific items, like equipment or machinery.
Better public perception
Incorporating your business in Arizona can improve how trustworthy people see your company. An incorporated business looks more official and well-established, which attracts more clients and builds a strong reputation.
Investors and banks prefer working with incorporated businesses because investing is more professional and safe.
Access to capital
Relating to better public perception, incorporating in Arizona lets business owners sell shares to raise funds. Being more professional makes it easier to attract investors to help the business succeed. Banks are also more willing to lend money to incorporated businesses.
Limited liability protection
Incorporating in Arizona offers limited liability protection for business owners. If the business has debts or legal issues, any personal assets, like the owner’s home and savings, are safe. Only the business’s assets will be at risk.
Many business opportunities
Choosing to form your business in Arizona opens up many significant opportunities. The state is home to one of the largest cities in the United States, Phoenix, with a population of 1,650,070 in 2023. Plus, Arizona is growing quickly, which means even more people and potential customers.
Arizona offers many State Small Business Credit Initiative (SSBCI) programs to help new small business owners start their companies.
- The Arizona Multi-Fund Venture Program helps small businesses grow by investing in them through different funds. This program is excellent for businesses that need extra cash but cannot get loans.
- The Arizona Venture Co-Invest Program allows the state to partner with private investors to support small businesses.
- The Arizona Loan Guarantee Program helps businesses get loans from banks. The state guarantees part of the loan, making lending safer for banks.
Overview of business structures in Arizona
Business structure |
Management |
Liabilities |
Taxes |
|---|---|---|---|
| Sole proprietorship | One person manages everything | The owner is responsible for all company debts |
The owner pays taxes on personal income |
| Partnership | Two or more people manage together | Partners are personally responsible for debts |
Partners pay taxes on personal income |
| LLC | Managed by one or more members or managers | Business debts do not affect personal assets |
Can choose which business entity to be taxed as |
| S-corp | Managed by shareholders and directors | Business debts do not affect personal assets |
Business income passes through to shareholders, who pay taxes |
| C-corp | Managed by shareholders and directors | Business debts do not affect personal assets |
Business pays their taxes, and shareholders pay on dividends |
| Nonprofit | Managed by a board of directors | Business debts do not affect personal assets |
Exempt from federal and state taxes if approved |
Explore more about Arizona incorporation
Benefits and challenges of incorporating in Arizona
Are you curious about the pros and cons of incorporating your business in Arizona? This guide will help you make an informed incorporation decision.
Setting up a C corporation in Arizona
Learn how to set up a C corporation in Arizona with this guide. Discover the benefits of this business structure and follow a simple, step-by-step process to establish your corporation.
Starting an S corporation in Arizona
Discover how to establish an S corporation in Arizona with this comprehensive guide. Gain insight into the specific advantages, characteristics, and procedures for forming an S corporation in the state.
Creating an LLC in Arizona
Find out how to establish a Limited Liability Company in Arizona with our informative guide. We cover the crucial steps, benefits, and documentation for forming an LLC.
Comparing S corp and C corp in Arizona
Get a clear understanding of the differences between S corporations and C corporations in Arizona. This article outlines the main structural, tax, and operational distinctions to help you choose the best fit for your business needs.
How to incorporate in Arizona
Every business owner planning on incorporating in Arizona must understand the state laws to avoid future problems. Before taking any further steps, we recommend contacting a professional with any legal advice-related questions and concerns.
Starting an S-corp, C-corp, LLC, or nonprofit in Arizona may have different steps. Once you decide what business type to incorporate, we can help you accomplish this goal.
Incorporating in Arizona with MaxFilings
Let us make the incorporation process smooth and hassle-free for you. With our expert team, you’ll get clear, step-by-step guidance without any upfront costs. Our basic incorporation package is free—you only pay state fees. Plus, you’ll enjoy a complimentary year of registered agent services to get you started.
MaxFilings professionals aim to provide fast, high-quality service without the shock of hidden costs. Let us help you make your business visions a reality.
Start a business in Arizona
Which business structure offers the greatest advantages for incorporation within the state of Arizona? Check out our guide.
Arizona C Corp Formation
Form your Arizona C corp easily with MaxFilings. Get the perks of limited liability, great tax breaks, and easy capital access.
Arizona S Corp Formation
Form your Arizona S corp effortlessly with MaxFilings. Gain tax advantages, limited liability protection, and seamless fundraising.
Arizona LLC
Formation
Launch your Arizona business with ease. MaxFilings simplifies LLC formation, offering limited liability protection and valuable tax benefits.
Arizona Nonprofit Formation
Incorporate your Arizona nonprofit effortlessly with MaxFilings. Assess the costs, benefits, and potential community implications.
See the full range of features, benefits, and pricing tailored to your needs.
Incorporate in Arizona with MaxFilingsAt MaxFilings, we are committed to supporting you every step of the way.
