Why Start an AZ Corporation?
The state of Arizona offers a competitive range of business incentives and programs, providing businesses in Arizona with an increased opportunity for success. Your corporation may be able to take advantage of these incentives, as long as it meets qualifying criteria.
For example, the Venture Ready program is a business mentor program set up by the Arizona Commerce Authority to connect Arizona talent with its incredibly rich resources. The program is part of a collaborative effort to create winning companies while retaining and developing entrepreneurial talent in the state of Arizona.
For those looking to form a larger business, an Arizona incorporation may be the best choice. As a corporation, your company may buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than a limited liability company (LLC). A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.
Is an LLC Better Than a Corporation?
It all depends on your ambitions. For a smaller business, a limited liability company is usually a better option. An LLC is easier to set up and receives many of the same benefits as corporations, but with less regulation.
Learn more about forming an Arizona LLC so you can decide which business entity is right for you.
Benefits of Forming an Arizona C Corporation
It offers you numerous advantages, including but not limited to:
- The strongest form of liability protection possible by insulating your personal assets and finances from business debts, obligations, damages, bankruptcy or other liabilities
- Several options to create, buy, sell or transfer stock, including publicly
- The ability to issue more than one type of stock
- The ability to raise more funds by issuing more stock
- The ability to sell stock to investors inside and outside the U.S.
Benefits of Forming an Arizona S Corporation
It offers several advantages similar to those provided by a C Corp including, but not limited to:
- Options for creating, transferring and selling stock, though not as many as a C Corp
- The capacity for up to 100 shareholders
- Simpler rules than those that apply to C Corporations
- Easy transfer of ownership simply by selling your stock
- The possibility of saving money by allowing you to pay less self-employment tax
In this guide, you’ll find information on naming your corporation, getting a Statutory Agent, the fees you’ll need to pay, business taxes and much more. We also cover what you'll need to register your corporation and how you'll interact with the Arizona Corporation Commission.
Start a Business in Arizona Checklist
To help you along the way, use our Starting a Business checklist to keep track of everything you need to do to get your business up and running.
How to Form an Arizona Corporation Yourself in 6 Steps
Step 1 - Choose a Unique Business Name and Complete a State Business Search
Step 2 - Provide an Official Business Address for Your Corporation
Step 3 - Assign a Statutory Agent
Step 4 - File Your Articles of Incorporation with the Arizona Corporation Commission
Step 5 - Get an Employer Identification Number (EIN) from the Internal Revenue Service
Step 6 - Write Your Bylaws
1
Choose a Unique Business Name and Complete a State Business Search
Every Arizona business must have a unique name that isn't already being used by another business in the state. If you’re having difficulty thinking of a name, try using our Business Name Generator to gather ideas. You'll need to follow a few naming rules, which you can read about in detail on the Arizona Corporation Names page.
Once you’ve chosen a name, you’ll need to confirm that it’s available in Arizona. To see whether another company in the state is using your desired business name, use our tool to do an Arizona entity search, or carry out a name search on the state's website.
2
Provide an Official Address for Your Corporation
Provide an Official Business Address for your Corporation All AZ corporations must have a designated address. It could be the address of your domicile (if you’re running the company from your home), a building where your office is located or any physical address of your choice. The address can be outside the state of Arizona and can be a P.O. Box.
If you prefer, you can also use a virtual mailbox for your business address. Incfile can provide you with an Arizona virtual mailbox where we'll receive your mail and scan it for your online review. This can be especially helpful if you run a home-based business and don't want your home address published as part of your business public record.
3
Assign a Statutory Agent
Referred to as a Registered Agent in most states, a Statutory agent is someone who receives official correspondence and is responsible for filing reports with the Arizona Corporation Commission. Every Arizona corporation is required to have a Statutory Agent.
You may fill this position yourself, assign another manager in your business or use a Statutory Agent service. If your Statutory Agent in Arizona is a person, they must have a physical street address in Arizona and must be available during business hours to receive important documents on behalf of your company.
You'll appoint your Statutory Agent when you file your Articles of Incorporation with the Arizona Corporation Commission and formally create your corporation. Your Statutory Agent must file a formal acceptance form before they can become your agent.
All of Incfile’s business formation packages include Statutory Agent service. It’s free for the first year and just $119 per year after that. You can also access a digital dashboard to view any document we've received on your behalf.
4
File Your Articles of Incorporation with the Arizona Corporation Commission (ACC)
Once you've gathered all the information for your corporation, you’ll need to file a form with the ACC. Once you have filed your Articles of Incorporation you will have officially created your business.
Here’s what is typically included in your Articles of Incorporation:
- Your business name and type
- Your corporation's purpose
- The corporation’s capital structure (number of shares to be issued)
- The corporation's address
- Name and address of each director
- Statutory Agent's name and address
- Name, address and signature of each incorporator
Your Articles of Incorporation can be filed online via the state's digital portal. You can also fax or mail the form to the Arizona Corporation Commission, or Incfile can file it on your behalf. The AZ Corporation filing fee is $60.
File by Mail
Arizona Corporation Commission
Examination Section
1300 W. Washington St.
Phoenix, Arizona 85007
File by Fax
(for Regular or Expedite Service ONLY):
602-542-4100
(for Same Day/Next Day Service ONLY):
602-542-0900
Important: The state of Arizona also requires a Certificate of Disclosure to be submitted along with your Articles of Incorporation. The Articles will be rejected if the Certificate of Disclosure is not submitted at the same time.
You only need to file your Articles of Incorporation in Arizona once, but once a year after, you'll also need to file an annual report with the Arizona Corporation Commission. You can complete your report by logging in to the ACC's online portal and filing the required information. Incfile can remind you about this every year, or we can do it for you if you have us handle the paperwork.
What are the fees and requirements to incorporate in Arizona?
Arizona Filing Time & Price
| State Fee | State Filing Time | Expedited Filing Time |
| $60 | 4 Weeks | 5 Business Days |
| State Fee | $60 | |
| State Filing Time | 4 Weeks | |
| Expedited Filing Time | 5 Business Days |
Arizona Compliance Requirements
Frequency
Annually
Due Date
Corporations are required to file an Annual Report with the Arizona Corporation Commision. The Annual Report is due by the anniversary date of the filing.
Filling Fee
$45Important
Arizona requires that you publish the Articles of Incorpration in their entirety. The publication must be in a newspaper in general circulation in the county of the known place of business in Arizona for 3 consecutive publications. The publication must be filed within 60 days of the date of incorporation. The corporation may be subject to administrative dissolution if it fails to publish.
Where do I publish the document?
The A.C.C. does not endorse any particular newspaper, but, as a courtesy they provide a list of newspapers that have attested to the A.C.C. that they meet the statutory criteria for publishing documents. Upon publishing you will receive an Affidavit of Publication. It is not required, but you may send the Affidavit of Publication you receive from the newspaper to the A.C.C. for placement into the entity’s public record. If you do not submit the Affidavit of Publication to the A.C.C. you should retain it as part of your entity's permanent record.
(We do not assist in the filing of the Publication Requirement)
5
Get an Employer Identification Number (EIN) from the Internal Revenue Service
In order for the IRS to identify your business, you'll need an EIN. You'll use this number for filing and paying taxes, submitting payroll information and payments for your employees and opening a business bank account. You can obtain one directly from the IRS, or Incfile can get one for you as part of the AZ corporation formation process.
6
Write Bylaws
Bylaws are a set of rules that govern how a corporation will be run. They detail how many directors the corporation will have, whether the board of directors will have annual meetings and what the voting requirements will be, among other things.
Some states — including Arizona — legally require companies to create bylaws. However, you aren't required to file your bylaws with the Arizona Corporation Commission - simply keep them with your other business records.
It's always a good idea to write and follow bylaws to protect your business from any future changes and events.
Types of AZ Corporations
C Corporation
When you file to start a corporation, by default, it's a C Corp. This is the choice for large businesses that will trade shares in the stock market.
An Arizona C Corporation will offer you several liability protections, but it will also be required to adhere to numerous strict rules and regulations. It will also likely have a substantial amount of administrative overhead, and won't enjoy as many tax advantages as other corporation types.
Learn more about C Corporations.
S Corporation
Technically, an S Corporation isn't a business entity the way LLCs and C Corporations are. It's a tax filing status. An LLC or a C Corporation can be an S Corporation. It's just a matter of filing a form with the IRS.
The main reason to file as an S Corp is to save money on self-employment taxes. To get an idea of how much money you might save, use our S Corp Tax Calculator.
If you want your Arizona C Corporation to be treated as an Arizona S Corporation, file the IRS Election by a Small Business Corporation form, also known as Form 2553 or an S Corp Election form.
Consult with your tax advisor or accountant to determine whether this is your best option.
Learn more about S Corporations.
Compare S Corp vs. C Corp to learn the benefits and drawbacks of both, and decide which one will best suit your needs.
Professional Corporation
Some states, including Arizona, allow certain occupations to form Professional Corporations. The Arizona Revised Statutes (ARS), Title 10, Chapter 20, Article 1, § 10-2201 defines a Professional Corporation in Arizona as:
"...a corporation for profit that is not a foreign professional corporation and that is incorporated under or subject to this chapter."
And a professional service as:
"...a service that may be lawfully rendered only by a person licensed or otherwise authorized by a licensing authority in this state to render the service."
ARS Title 32 lists several of the professions permitted to form a Professional Corporation in Arizona, which include, but may not be limited to:
- Architects
- Certified Public Accountants
- Podiatrists
- Chiropractors
- Dentists
- Engineers
Check with the Arizona Corporation Commission to confirm whether your business should and can be a Professional Corporation.
Close Corporation
Put simply, a Close Corporation is one that has a limited number of shareholders, and isn't publicly traded.
Per Arizona Revised Statutes Title 10, Chapter 18, Article 1, § 10-1803, an Arizona Close Corporation may not exceed ten (10) original investors.
This entity is often chosen by family-owned businesses to prevent non-family members from establishing or claiming any ownership of the company.
Foreign Corporation
If your business operates in another state and you want to expand into Arizona — or vice versa — you’ll need to form a Foreign Corporation.
Learn more about Arizona Foreign Corporation registration.
Nonprofit Corporation
Charitable organizations can incorporate as nonprofit corporations. This means all the profits they generate are donated to the organization supported by the charity, minus administrative costs.
A nonprofit corporation is also exempt from federal and state taxes, allowing more of the profit to benefit the charity.
Note: Everything in this guide applies to for-profit corporations, and mostly to C Corps and S Corps. Items listed as requirements for forming a corporation may or may not also apply to nonprofits.
Limited Liability Company
Depending on your personal circumstances, goals and the kind of business you want to form, an LLC may be a better option for you. For example, you may only want to start a small business that you yourself will run with just a few employees and you may not need the options to buy and sell stock.
An Arizona LLC is usually a better option for a smaller business. It's easier to set up, but it still offers you certain advantages you'd get from a corporation. You can even have your LLC treated as an S Corporation for tax purposes to save you money.
Regardless of which direction you decide to go, we can help you with your Arizona business registration.
Learn more about limited liability companies.
Sole Proprietorship or Partnership
These are considered the simplest types of businesses to set up. That's because there's no real setup to do. If you don't choose to form a separate business entity, by default, you'll have either a sole proprietorship (just you) or a partnership (you and one or more other people).
Neither of these options provide you with any special benefits or liability protections and can leave your personal assets vulnerable. For these reasons, we don't recommend them.
Compare business entity types to decide which one is best for you.
Helpful Resources from the State of Arizona
More Information in This Guide
You’ll find plenty more insight and guidance on the other pages of this guide, including:
How to search the state business registry and find the right name. Includes information on naming rules, trade names, reserving names for AZ corporations and more.
How to appoint, change and search for Statutory Agents. Also includes the duties they fulfill and the rules they’re required to follow.
Details the various fees you’ll need to pay and the state and federal requirements you’ll need to meet. Includes details about Employer Identification Numbers (EINs), state and federal business licenses, annual reports and more.
Covers the various taxes you’ll have to pay to the state and federal governments. Includes details about state taxes such as income and sales, and federal taxes such as income and self-employment.
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