Moving Your LLC or Corporation to Arizona

Why Arizona?

If you have already established your company and are thinking of expanding to multiple markets like Arizona then it will help to know more about this state. Moving your business to Arizona can have a positive impact on the entire operations as this is a state with a vibrant industry and diverse market driven by constantly evolving technology. The state provided strong support to new and existing businesses and this can be in the form of grants, loans, financial incentives, industry-based incentives, tax credit programs, and much more.

Thriving innovation/startup culture

Arizona is considered a hotbed for start-ups. Innovation and start-ups walk hand in hand to achieve larger objectives on a national and global scale. Relocating a business to Arizona will help you to leverage several opportunities for expansion. The state is home to a robust and well-planned startup ecosystem supported by a community of accelerators and incubators. The Arizona Innovation Challenge is the largest business plan competition in the nation and attracts entrepreneurs from within and outside the state. Apart from this, you can find useful resources and also participate in various entrepreneurship programs, attend workshops and conferences, and even attend DesTechAZ, Arizona’s signature tech event.

Low cost of doing business

Business owners opt for entity domestication in Arizona due to several benefits offered by the state. One of the top benefits is the overall low cost of conducting business in this state. In fact, it is one of the lowest in the United States due to low taxes. The national average of per-capita income that goes towards taxes is 9.9 percent while the same average in Arizona is 8.4 percent. In addition to this, taxes on Arizona gas, property and personal income is quite low as compared to other states.

Top talent

Whether you form a new business or simply expand your company operations to Arizona, one of the foremost drivers of your organizational success will be dependent on employees. Hence, it’s critical to identify the skills of your prospective employees. Talent always results in success! If you are moving your business to Arizona then the good news is that the state will provide you access to an abundant workforce that is highly skilled, extremely talented, and young. Currently, the state is ranked #1 in higher education degree opportunity and ranked #2 in terms of workforce quality and availability.

Business-friendly regulations

Business laws are important especially when it comes to formation of a new business or relocation. If you have a question like “does Arizona allow domestication?” then the answer lies in the Arizona Revised Statutes and regulations. The state has worked really hard towards creating a friendly regulatory environment for all forms of businesses. The state has successfully minimized red tape and has repealed several burdensome regulations. This has helped in providing the Arizona business community with more streamlined regulations that promise smooth business operations. Tax returns, collection, and audits have also been streamlined.

Access to international markets

There are primarily two types of markets that most businesses need to cater to and they are the local (state, city) market and national markets. There is also the global market, which is important for companies relying on trade or focusing on export and import of goods. Conducting business in international markets will require you to have access to the right infrastructural and logistics support and network. Relocating a business to Arizona will definitely provide you with this access. Arizona sits on a strategic location and is a part of the larger trade corridor that encompasses a wide network of roads, rail, and air transportation.

Simplified tax system

Whether you are moving an LLC to Arizona or registering a new business, you will be required to fulfill state annual requirements. One such requirement is that of filing taxes. Different states have different tax structures and types of business tax but the salient highlight of Arizona is a simplified tax system. Arizona has successfully simplified its income tax. Income tax rate used to be 4.5 percent and now it has been reduced to a rate of 2.5 percent, which incidentally is the lowest in the country. On top of that, the state has introduced several tax exemption and tax credit programs for all sizes of businesses over different industries. This will help you in lowering your overall tax burden.

Steps to Move Corporation to Arizona

If you have taken the decision of moving your business to Arizona then there are several options available. You can close your existing business and start a new business in this state. Alternatively, you can operate your company in the home state as well as in Arizona. While moving your business, you may have several questions like does Arizona allow domestication and the applicable processes. Let us look at the various options for relocation in detail.

Register as a foreign Corporation

The first option for relocating a business to Arizona is through the process of foreign qualification. This option is best for entrepreneurs who want to operate their corporation in the home state (state of incorporation) as well as other states like Arizona. The various requirements related to foreign qualification are governed by the 2019 Arizona Revised Statutes, Title 10 – Corporations and Associations, Chapter 15 – Foreign Corporation. Moving a corporation to Arizona through foreign qualification includes the following steps:

• Designate an Arizona registered agent for handling service of process pursuant to AZ Rev Stat § 10-1510 (2019)
• Conduct name availability search and file the Application to Register Foreign Corporation Name
• File the Application for Authority to transact business or conduct affairs in Arizona pursuant to AZ Rev Stat § 10-1503 (2019)
• You will also need to submit a Certificate of Existence (Certificate of Good Standing) issued by the home state or state of incorporation

Do you want to relocate as a foreign corporation in Arizona?

Convert a Foreign Corporation to Arizona entity

The second option facilitates entity domestication in Arizona. This is also known as the process of entity conversion. You can use this option if you want to change the status of a foreign entity into that of a domestic corporation or any other form of entity. You will be required to file a Statement of Domestication. The governing laws for converting a foreign corporation into an Arizona entity are A.R.S. §§ 29-2101 through to 2703 and A.R.S. §§ 29-2501 through to 29-2507.

Dissolve home Corporation and establish a new Corporation in Arizona

Relocating a business to Arizona can be done through another process through which you will need to dissolve your existing corporation. When you dissolve your home entity, you will be able to apply for domestic incorporation. This process of moving a corporation to Arizona will require you to follow the laws and process of dissolution of the home state. There are some general dissolution procedures applicable in all states and they are:

• Approval of dissolution of a corporation by incorporators, directors, or shareholders
• Filing Articles of dissolution in the home state
• File any federal, state, and local taxes and claims outstanding
• If applicable, publication of notice of dissolution
• Wind up business affairs in the home state like canceling of business licenses and permits

• Appoint an Arizona registered agent for service of process
• Identify and reserve a business name using the Application to Reserve Corporation Name
• File Articles of Incorporation along with a Certificate of Disclosure and appropriate fee
• Prepare bylaws for Arizona Corporation
• Apply for relevant state and local business licenses and permits

Incorporate in Arizona with ease!

Steps to Move an LLC to Arizona

Moving your business to Arizona may seem like a challenging task but the state offers multiple ways to make this happen smoothly. Arizona is a pro-business state and has regulations that help in minimizing the time taken for relocation and the processes are also entrepreneur friendly. You may also have certain questions regarding relocation like does Arizona allow domestication? So, let’s take a look at the different options including entity domestication for an LLC.

Register as a foreign LLC

Relocating a business to Arizona, especially a limited-liability company will open your doors to several opportunities that the state has to offer. You will be able to not only expand your business in a technology driven startup ecosystem but also apply for small business incentives and grants. There are different steps involved in moving an LLC to Arizona and the most important is through foreign qualification. As a foreign entity, you will have the advantage of operating your company in the home jurisdiction (state of registration) as well as new jurisdiction (Arizona).

• Hire and maintain an Arizona registered agent for handling service of process pursuant to AZ Rev Stat § 29-811 (2019)
• You can keep the existing name of your foreign LLC only if it is available. If the said name is unavailable then you can choose a DBA by filing the Trade Name Registration Application pursuant to AZ Rev Stat § 29-804 (2019).
• File the Foreign Registration Statement to transfer an LLC to Arizona through foreign qualification pursuant to pursuant to AZ Rev Stat § 29-803 (2019)
• Submit a Certificate of Existence also known as Certificate of Good Standing issued by the home state

Do you want to move your LLC through Arizona foreign qualification?

Convert a Foreign LLC to Arizona entity

Entity domestication in Arizona is also known as the process of conversion. If you want to change the entity type or the home state of your company then this process will be applicable. You will be required to file a Statement of Domestication pursuant A.R.S. §§ 29-2101 through to 2703 and A.R.S. §§ 29-2501 through to 29-2507. This process will change the home state of your company to Arizona. You can convert a foreign LLC to a domestic LLC or even a domestic corporation. Depending on the type of entity structure you opt, the forms and fee will vary. For example – If you plan on relocating a business to Arizona as an LLC then apart from a Statement of Domestication, you will also need to file an Article of Organization.

Dissolve home LLC and form a new LLC in Arizona

There is a third option for moving your business to Arizona. This involves dissolving the limited liability company in your home state and then registering a domestic LLC in Arizona. The rules for dissolution will be governed by the home state or the state where you have registered your company. There are certain aspects and laws of dissolution that remain the same for all states. In order to transfer an LLC to Arizona through dissolution, the following steps may be involved –

• Approval of dissolution of an LLC through unanimous member consent
• Filing Articles of dissolution in the home state
• File any outstanding claims as well as federal, state, and local taxes
• Publish a notice of dissolution if applicable
• Cancel all business licenses and permits

• Appoint an Arizona registered agent pursuant to AZ Rev Stat § 29-604 (2019) for handling of service of process
• Conduct an LLC name availability search and reserve a business name using the Application to Reserve Limited Liability Company Name
• File Article of Organization Arizona Corporation Commission – Examination Section along with the appropriate fee
• Prepare Arizona LLC operating agreement
• Open a business bank account
• Apply for state and local business licenses and permits

Register your LLC in Arizona Today!

Move Your Business to Arizona with IncParadise

There are several processes for relocating a business to Arizona. These processes may require rigorous documentation. That is why IncParadise is here to help. We provide a variety of services to fulfill different business requirements. We can assist you to move your corporation to Arizona or your LLC. We can help facilitate paperwork for dissolution in your home state, foreign qualification, and new business registration in Arizona.