How to Incorporate in Arizona
Forming your corporation in Arizona starts with filing the Articles of Incorporation with the Arizona Corporation Commission (ACC). After that, to get your business up and running, you will need to obtain an employer identification number from the IRS, draft and finalize corporate bylaws, hold an organization meeting, and apply for any required licenses and permits relevant to your business.
Why Choose Arizona Registered Agent LLC to Incorporate Your Business?
Forming an Arizona incorporation can be tricky. It’s not rocket science, but it’s not a piece of cake either. Good thing we know the ins and outs of the incorporation process in Arizona.
From start to Inc., we got this.
ARIZONA REGISTERED AGENT LLC INCORPORATING SERVICE
When you hire Arizona Registered LLC to start your Arizona corporation, we prepare and file the Articles of Incorporation, provide one full year of statutory service, and offer on-point customer care to your clients.
- Custom corporate bylaws
- Custom shareholder certificate
- The Certification of Incorporation emailed directly to you
- Access to your client account to manage filings
|Arizona State Filing Fee||$95|
|Our Incorporation Service Fee||$100|
|One Year Statutory Agent Service||$95|
Arizona Corporation Advantages
The corporation is the oldest legal business entity in the USA. Because of this, the legal system has had more opportunity to get corporate law on the books compared to any other business entity.
When you add the “Inc.” to your company, you also add a board of directors, a CEO, shareholders, and meeting minutes. All of a sudden, things get pretty serious. Incorporating your company adds a dash of credibility and a dollop of prestige–ingredients that go far in the business world.
Investors are attracted to the history and reputation of the corporation as a legal business entity. Before they invest money in a company, investors like to have a general understanding of the laws that apply and the company’s structure. These are things that a corporation offers.
DO IT YOURSELF GUIDE
TO FORMING A CORPORATION
Forming your corporation in Arizona is a multi-step process that begins with completing the Articles of Incorporation. In order to file this document with the ACC and incorporate your company, you will also need to file a cover sheet, a statutory agent acceptance document, and a certificate of disclosure.
Once your company is incorporated, you are required to publish a Notice of Incorporation, obtain an Employer Identification Number (EIN) for federal tax purposes, create bylaws, hold an organization meeting, and apply for any required permits or licenses.
Complete the Articles of Incorporation
The first step to incorporate your business in Arizona is completing the Articles of Incorporation. This series of instructions is to complete the Articles of Incorporation for a “For-Profit (Business) Corporation. For more information on professional corporations, check out the FAQ section of this guide
1. Choose a Name
All Arizona corporations are required to have a name that is distinguishable from any other legal entity on file with the ACC. You may think you have the perfect name for your business, but it’s a good idea to check if it is available by visiting the ACC website.
Besides being unique, your company name must also include one of the following words or abbreviations:
- Association or Assn.
- Company or Co.
- Corporation or Corp.
- Incorporated or Inc.
- Limited or Ltd.
2. Provide Character of Business Information
Section 4 of the Articles of Incorporation (titled “Character of Business”) requires a brief description of what your business does. The description can change, but you must provide a brief initial description.
3. Provide Share Information
Section 4 of the Articles of Incorporation, you are required to provide information about the stock structure of your company. In Arizona, a corporation is required to have at least one share. While it is not required that you list the par value of the shares, you are required to list the class and series of the shares that you are authorizing.
Company stock structure is confusing. If you want more information, it is a good idea to talk with an accountant or attorney.
4. Determine the Known Place of Business
Section 6 of the Articles of Incorporation requires information regarding the corporation’s known place of business (KPB). The KPS must be a physical address, located in Arizona. It is permissible that this address be the same as the Statutory Agent’s address. Once the Articles of Incorporation are filed, this information will be public record.
5. List the Name and Address of All Company Directors
You are required to list the name and address of all initial company directors on the Articles of Incorporation. Once the Articles of Incorporation are filed, this informatuon will be public record.
If you need more space to list additional directors, you can attach the Director Attachment form, which is available on the ACC Corporation Forms Division Forms website under the “Corporation Forms” section.
6. Choose a Statutory Agent
A statutory agent (sometimes called a registered agent in other states) is an individual or business entity chosen by the corporation to receive all legal notices–including service of process–and annual report reminders from the ACC on behalf or the company. Statutory agents are required to have a physical street address in Arizona. PO box addresses are not valid.
All corporations formed in Arizona are required to have a statutory agent. If you have a physical Arizona street address, you can serve as your own statutory agent, but the drawback of this is that, if you list any personal information on the Articles of Incorporation it becomes public record.
Arizona Registered Agent LLC provides stautory agent service in Arizona for $35 a year. This service includes:
- Access to client account to manage documents
- Annual report reminders
- On-point customer care and expert service
The statutory agent must accept the appointment of statutory agent by signing the “Statutory Agent Acceptance” form. In order for the incorporation to occur, this form must be included wit the Articles of Incorporation filing. See the “Filing the Articles of Incorporation” section for more information.
Filing the Articles of Incorporation
Once you have completed the Articles of Incorporation, the next step is filing the document with the ACC.
In addition to the Articles of Incorporation, you must submit the following documents and correct payment:
|Cover Sheet||Provides general information regarding the type of filing||1||Cover Sheet||No Signature Required|
|Statutory Agent Acceptance||States the entity name and the statutory agent name||1||Statutory Agent Acceptance||Statutory Agent|
|Certificate of Disclosure||States the entity name, the type of certificate, felony & judgment information, and bankruptcy information||2||Certificate of Disclosure||All Incorporators|
Any document, and the information contained within the document, filed with the ACC is made public record upon filing.
|Fee Type||Price||Filing Date|
|Filing Fee||$60||20 Days|
|Expedited Processing||Filing Fee + $35||8 Days|
At this time, the ACC does not offer same-day service for business filings. For processing time updates, please visit the ACC Corporations Division Document Processing Times website.
|Submission Type||Cash||Credit Card||Check/Money Order|
If you are paying by check or money order, make payment to: Arizona Corporation Corps.
Incorporation occurs when the Articles of Incorporation, required documents, and necessary fees are paid. If all requirements are not met, the ACC will provide notice that the Articles of Incorporation have not been filed. After that, you will have thirty days to comply with the filing requirements to incorporate your business.
Publishing a Notice of Formation
Unless you live in Maricopa or Pina counties, you are required to publish a Notice of Formation within sixty days of incorporation. If you do not publish this notice, your corporation will be administratively dissolved.
The Notice of Publication is required to be published for three consecutive weeks by a newspaper circulated in the county of incorporation. It must contain the business name, the file number provided by the ACC, and the name and address of the statutory agent. Additional instructions for publication will be included with the corporation approval letter sent by the ACC. To compare rates for publication cost, contact the acceptable publications listed with the ACC.
Once the Notice of Incorporation has been published for three consecutive weeks, an Affidavit of Publication will be sent by the publication. You are not legally required to record this Affidavit with the ACC, however, it is a good idea to do so to ensure there is evidence of compliance on file. There is no charge to record the affidavit.
Filing the Beneficial Ownership Information Report
After you’re officially incorporated in Arizona, you have a required federal filing: the Beneficial Ownership Information (BOI) report. This report must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 30 days of incorporation or by January 1, 2025 if you incorporate before 2024.
You must provide information about your corporation and the individuals with the most power over your business.
|Reporting Company||Your corporation|
|Beneficial Owner||Anyone with substantial control over business decisions (like corporate officers) or who owns 25% or more of the company (unlimited)|
|Company Applicant||The person(s) responsible for company formation (up to 2)|
|Reporting Company||Beneficial Owner and Company Applicant|
Note: Corporations formed before 2024 don’t have to include company applicant information. Additionally, some highly-regulated companies are exempt from BOI filing.
Filing is free and can be completed online through FinCEN’s secure database. The information you disclose does not go on the public record.
If you knowingly do not file or list false information, you could face steep penalties—up to $10,000 and/or 2 years of jail time.
Obtaining an EIN
An employer identification number (EIN) is a unique nine-digit number assigned to your corporation by the Internal revenue System (IRS) for federal tax purposes. All corporations are required to obtain an EIN. The process is free, simple, and easy. Visit the IRS website for more information.
Arizona Corporations are required to adopt initial bylaws for the corporation. The bylaws set forth rules on how the business should be managed, including information pertaining to board to directors, stock structure, shareholders, conflicts of interest, corporate officers, how the bylaws should be amended, and shareholder meeting time and location. Typically these bylaws are adopted by the corporation during the organization meeting.
Holding an Organization Meeting
Organization meetings are the initial meetings of all incorporators and the board of directors of a corporation. Usually, the agenda of the organization meeting includes:
- Taking attendance
- Presenting the Articles of Incorporation
- Electing the Board of Directors
- Presenting stock certificates
- Adopting the bylaws
Applying for Required Permits and Licenses
If your corporation is selling a product, you are required to apply for and obtain a transaction privilege tax licenses for the Arizona Department of Revenue. The TPT is a tax on vendors in Arizona. The Arizona Department of revenue collects these taxes for most counties, however, some cities in Arizona collect these taxes independently. Tax rates are varied based on the industry, county, and city that the corporation conducts business in.
TPT licenses are valid for one calendar year and must be renewed annually. Fees for renewal vary by jurisdiction. For more information on TPT, or to file your TPT, you can visit the State of Arizona Department of Revenue website to find out more.
FREQUENTLY ASKED QUESTIONS
What is a professional corporation?
A professional corporation is a for-profit corporation that is conducting a professional service that can only be lawfully practiced by an authorized professional. These services include: architect, assayer, engineer, geologist, landscape architect, and land surveying.
How will my corporation be taxed?
Arizona corporations are subject to a 6.968% corporate tax with a minimum tax of $50–regardless if the corporation was profitable. If you would prefer that the profits of your corporation are passed on to the shareholders and taxed as person income, you can apply for your corporation to be distinguished as an S-corp.
An S-corp is a “pass-through” entity–which means that profits are not subjected to corporate tax and personal income tax, but are instead passed through the corporation to the shareholders. You can apply for your corporation to be distinguished as an “S-corp” for tax purposes by visiting the IRS S Corporations website.
What is the difference between an S-corporation and C-corporation?
They are the same legal business entity—the term “S-corporation” only is used as a tax identifier for IRS federal tax purposes.
An S-corporation is taxed as a “pass-through” entity, while a corporation without the S-corp qualification is subject to corporate tax at the federal level.
Different rules and regulations apply to an S-corp. For example an S-corp can have no more than 100 shareholders, an S-corp must be a domestic company, and S-corps can only issue one class of stock. It is a good idea to consult a tax specialist if you have more questions about S-corp status.
What is a trade name (DBA) and do I need one?
DBA stands for “doing business as.” Many Arizona companies choose to operate under a trade name because it allows for franchising and branding. If you’re interested in registering a trade name, select our Trade Name Service inside your account after you sign up for our business formation service. We will register your company’s trade name for $110 and keep your name off the paperwork.
When and where do shareholders meet?
The bylaws of a corporation determine when the annual meeting of shareholders will occur. There are no regulations limiting the location of a shareholder meeting. If no location is stated or if information regarding the location of the meeting is not provided in the bylaws, the meeting is to be held at the location of the statutory agent.
It’s not too late.
Arizona Registered Agent LLC can help.
For $244 we can incorporate your Arizona business.
- On-point customer care
- Business documents emailed directly to you
- Articles of Incorporation filed by experts
- Transparent prices & straightforward service