Large, medium and small businesses are welcomed for incorporation in the 16th largest state of America, Arizona, in sectors like manufacturing, tourism, mining, IT or agriculture. The company registration procedure starts with the preparation and submission of documents to the Arizona Corporation Commission. We have prepared a general guide to company incorporation in Arizona and we invite you to take into consideration the main steps in forming and registering your business in this state. We mention that our company formation agents in America can provide you with complete support in the company incorporation procedure, regardless of the chosen state for business.

The minimum share capital for an LLC in Arizona

The most preferred business form in Arizona is the limited liability company which can be set up by at least one shareholder and there is no requirement for a minimum share capital. Once the name of your LLC has been approved (a name which must contain LLC, L.C., L.L.C., or LC at the end of it), your company must appoint a representative agent in Arizona.

Conditions to set up a company in Arizona

If you want to start a business in America and especially to set up a company in Arizona, it is necessary to prepare the Articles of Association which must contain details about the owners, the name of the business, the purpose, the activities, the name of the registered agents, the business address, the signatures of the owners, and the number of the shares. As soon as the documents have been approved by the commission of incorporation, the Articles of Association must be published in a general circulation newspaper in Arizona. Please keep in mind that a fee of about $60 must be paid at the date of the incorporation of the company in Arizona. Here are a few facts you should consider when opening an LLC in Arizona:

• the Employer Identification Number or the EIN is issued by the IRS (Internal Revenue Service) for taxpayer companies in Arizona;
• even though it is not mandatory, the operating agreement which is the governing document of a company should be created by the owners;
• a company seal is needed once the firm is incorporated in Arizona;
• registering for social contributions if you want employees in the firm is mandatory.

Each step of the LLC registration in Arizona can be supervised by our team of company formation agents in USA. Let us handle the formalities on your behalf, in order for you to concentrate on doing business in USA.

The statutory agent for your company in Arizona

Each company in Arizona need to appoint a statutory agent who can be whether a person or a business entity with a physical address in the state. The responsibility of such representative is to accept the documents of the company in a legal manner. Even foreign corporations are accepted as statutory agents for brand-new companies in Arizona.

Opening a bank account for your business in Arizona

One can establish a bank account for his/her company in Arizona if the necessary documents are provided to the financial institution. The Articles of Association, alongside with the incorporation number or the employer identification number (EIN) are in most cases sufficient for opening a bank account, but there might be other documents to offer at the request of the bank. The company registration procedure in Arizona can be entirely supervised and explained by our company formation representatives in America.

Employees for your Arizona company

If you want to open a company in USA as a foreign entrepreneur, you might want to consider the available and skilled workforce on the market. In Arizona, you can ask for support from varied recruitment companies that can help you choose the suitable employees for the available positions in your firm. If you already have a human resources department, this can take care of searching for staff with the help of recruitment agencies in Arizona.

The sales tax in Arizona

Companies settled in Arizona, with at least one employee, goods stored in a warehouse, and with real estate assets are entitled to pay the sales tax. This tax is imposed for companies which produce all kinds of goods but with certain exceptions for grocery, medicine, machinery, medical devices and chemicals which are used in Arizona for research and science purposes. The sales tax is imposed in the price of the products available for sale, and the business person who deals with such activities must apply for a sales tax permit, in order to collect the fee and provide it to the financial authorities in Arizona.

Salaries in companies incorporated in Arizona

The annual average salary for an office manager in Arizona is around $45,000. Depending on the type of job, an employee can gain from $15 to $50 or more per hour according to the Occupational Employment Statistics for 2016.

Create a website for your company in Arizona

If you have registered a company in Arizona, you should consider the proper ways of promoting the activities, goods, and services. For instance, you can consider creating a website which must contain as many details as possible about your business. Even if the competition is strong, you can have success on the market if you adopt the well-known promotion channels, including the ones linked to the social media.

A virtual office for your business in Arizona

Entrepreneurs who decide for USA company formation, especially in Arizona, must bear in mind that besides opening a traditional office, they can benefit from the services of a virtual office. Our agents will take care of each detail, starting with a notable business address and a local phone number and ending with complete mail and correspondence services, besides providing information and support for future partners. Virtual office services can be offered on request by our team of consultants in Arizona.

Do I need a merchant account for my company in Arizona?

Yes, if you offer the credit card payments, it is recommended to set up a merchant account. This is a special bank account used for financial transactions made with credit or debit cards. A merchant account can be used by companies with sale activities or the ones developed on the internet. One should observe the fees for setting up a merchant account, plus the monthly fees.

Accounting services in Arizona

There are companies that have an accounting department and there are firms which decide to externalize such service by hiring an accounting firm. Either way, it is important to have complete control over your finances, bear in mind the taxes you need to pay and submit the annual financial statements. These are only a few of the accounting matters a company should consider. Bookkeeping and payroll are essential for a business to legally operate in Arizona. Also, there are varied deadlines and tax classifications a company owner needs to be aware of, and instead of dealing with misunderstandings and unwanted tax problems, it is best to talk to an accountant and find out the ways in which your company can benefit from complete tax advice. Also, if it is the case, an accountant can propose to you a series of legal tax minimization methods, in order for you to save some money and make further investments in the company. Please feel free to talk to our team of consultants and ask for accounting services for your business in Arizona.

How to avoid mistakes when opening a company in Arizona

1. Don’t forget to create a business plan
Even though a new beginning is exciting, it is advisable to pay attention to all of the business requirements in any American state you might want to activate. For instance, there is a solid need for a business plan which needs to comprise a market evaluation, the type of customers, the investments which are about to be made and the profits the company will generate. Things cannot work out without a suitable business plan, and this is why there are many entrepreneurs who realize that the firm is not running as expected. Alongside the business plan, a marketing plan is mandatory when deciding for a company in Arizona. This kind of plan will reveal important facts about the ideal clients, about the market and the competition. A marketing plan will help you avoid the cases of investing money without something in return.

2. Be patient! A business will have profits in time
As it is known, a business takes time, therefore, investors should know the word patience. A business profit won’t show in less than a year or two, therefore, it is recommended to wait for the results and concentrate as much as possible on the ways of developing the business. In this matter, having complete control over the expenses is mandatory. It is recommended to keep track of the money invested in the firm and avoid debts as much as possible. Also, your products and services should be attentively measured from a pricing point of view, meaning that you should properly calculate the prices for your goods for selling purposes on the market. Underpricing is definitely not a good solution for your firm.

3. Choose the proper business structure
There are also cases in which the entrepreneurs think that the chosen business structure is not complying with the operations on the market. For example, there are cases in which a limited liability company doesn’t fit, but a sole proprietorship would. Luckily, in Arizona, you can switch the business structure and choose the one that fits most for your needs.

4. Don’t forget to protect the intellectual property
Companies with activities in sectors like entertainment, research and innovations should protect the intellectual property. In other words, it is important to bear in mind the patent protection and the copyright with the help of federal and state trademark protection. This way you can skip any possible infringements that might occur when running the business in Arizona.

Why open a company in Arizona?

With less bureaucracy, no minimum share capital, and a low taxation offered for companies, Arizona is a suitable place for doing business. Additionally, you can rely on the skilled workforce and on the states’ main developed industries: manufacturing, financial, health, agriculture or transportation. Phoenix, Chandler, Prescott, Tempe, and Scottsdale are among big cities in Arizona, with more than 160,000 inhabitants and the highest average revenue.

Arizona is among the American states where the business develops in a solid and reputable climate. Foreign investors need to observe the taxation structure in Arizona and to align with the conditions imposed for each type of company. In matters of company formation in USA and the ways in which your business can operate on the market, we suggest you to address your inquiries to our team of company formation specialists in USA. We are also at your disposal with in-depth information about the taxes that companies and natural individuals need to pay.

The sales tax in Arizona

One of the main taxes in Arizona, which concern companies with goods and services for sale purposes on the market, is the general sales tax. This is set at a rate of 5.6%, but it is good to bear in mind that municipalities in Arizona are entitled to collect their own sales tax which must not exceed 4.6% rate.

The corporate tax in Arizona

Corporations in Arizona are subject to a corporate tax of 4.9%. As for the limited liability companies in Arizona, for example, with a net income of $100,000 in a year, the corporate tax will be imposed on each partner. If you want to start a business in USA and particularly in Arizona, we invite you to talk to our company formation agents in USA for complete assistance and information in tax matters.

What are the taxes for individuals in Arizona?

Residents in Arizona need to consider the personal income tax in accordance with their registered revenues and status, as seen in the table below:

Taxable Income            Tax Rate
$0 – $10,179                   2.59%
$10,179 – $25,445         2.88%
$25,445 – $50,890       3.36%
$50,890 – $152,668     4.24%
$152,668+                      4.54%

Understanding the tax requirements in Arizona can be done with complete support offered by our team of company incorporation consultants in USA.

What is the personal property tax in Arizona?

Properties used for industrial, commercial and agricultural purposes in Arizona are subject to a personal property tax which is payable in two tranches, if it is more than $100. Half of the tax can be paid until October and the other half needs to be paid until the following March. Please note that penalties are imposed for late payments of the personal property tax.

The inheritance tax in Arizona

It is good to know that the state of Arizona imposes no inheritance tax or a gift tax.

How do I pay the taxes in Arizona?

Entrepreneurs and natural persons in Arizona can pay the taxes using debit and credit cards or by checks through the local tax offices or via the internet, on the official website of the Arizona Department of Revenue.