Why incorporate in Arizona?

Business Information & Rankings

Arizona ranked 1st as the Hotest State for Entrepreneurs. (Entrepreneur & NPRC, 2005)
Phoenix, AZ ranked 16th in the overall category and 6th in the large city category for Best Places for Doing Business in America. (Inc. Magazine, 2005)
Ranked 4th by CEOs as the Best State to Do Business. (Chief Executive, 2005).

Cost of Living Index

For Phoenix, AZ (2004):	Index Score
Composite:	99.2
Housing:	95.9
Utilities:	90.3
Misc. Goods & Services:	102.1

Crime Rate

In 2003, Arizona had the highest crime rate in the nation, fueled largely by the high property crime rate. In addition, Arizona was ranked 13th in violent crimes. (Arizona Criminal Justice Commission)

Fees & Taxes

Business Inventory Tax
Arizona does not have a business inventory tax.

Corporate Income Tax
Arizona has a corporate income tax rate of 6.968% with a minimum tax of $50.

Personal Income Tax
Varies starting at 2.87% for the first $20,000 up to 5.04% for income over $300,000. Note that personal income taxes have been reduced for each of the past five years.

Real & Personal Property Tax
Taxable. The average is $12.70/$100.

State Sales and Use Tax
Base Rate: 5.6 %
Machinery Rate: None

Exemption for machinery or equipment used directly in manufacturing, processing, fabricating, job printing, refining or metallurgical operations.

Almost all services are exempt from sales tax.

Transaction Privilege & Use Tax
This tax is a tax on the privilege of doing business in the State. The tax ranges from 5.6% – 9.0% with a state average of 8.3%.

Unemployment Insurance
Arizona’s new employers’ tax rate is 2.7% for 2 years.