What is an Arizona registered agent?

An Arizona statutory agent is also known as an agent for service of process, and is also known as a resident agent. A registered agent or RA needs to be hired by business entities in compliance with the state laws. Such an agent can be an individual or a company and their main objective is to receive service of process (SOP) on behalf of the businesses who have hired them. All states have business laws that govern hiring and maintaining an agent in that state. Similarly, the Arizona registered agent requirements are governed by the Arizona Revised Statutes for different entity structures.

What are the roles and responsibilities of a registered agent in Arizona?

The roles and responsibilities of a registered agent are more or less specified within certain sections of the business laws. These also form an integral part of registered agent services in Arizona. The services or responsibilities will remain almost the same for domestic and foreign new businesses as well as existing entities. The core duties of an RA includes the following:

• Service of Process – The most important responsibility of any registered agent in Arizona is to provide service of process. In order to provide this, an agency or agent has to play the role of being the point of contact or liaison between the state and the business or client. When we speak about service of process, it is important to understand what it really stands for. Service refers to delivery of the legal paperwork to a company or the defendant. Process refers to the summons or legal documents being served to a company for starting a lawsuit. When you appoint a statutory agent in this state then their role and responsibility will be to receive legal notices on behalf of your company.
• Business Documentation – If you are planning to register a new company in Arizona then there are two types of documentation processes that will come into play. The first part is where the chosen agent assists you with filing of business registration and other related documents with the state. The second part is where the state sends you important documents pertaining to your company like articles of organization etc. So, assisting you with submission of documents and receiving state sent mails and documents are an integral part of registered agent services in Arizona.

Who can be a registered agent for your Arizona business?

The laws pertaining to RA services and requirements are more or less the same across all states in the USA. The Arizona registered agent requirements are governed by the Arizona Revised Statutes. There general qualification criteria for a statutory agent and a firm as well as an individual can be your RA in this state.

What are the requirements of an Arizona registered agent?

The state of Arizona has defined requirements for a registered agent in the Arizona Revised Statutes. The statutory agent needs to be either a registered business or an individual who is also the resident of this state. You can conduct an Arizona registered agent search based on the requirements as specified by the state. This will ensure your company is able to find the best possible service. The key requirements pursuant to the Arizona Revised Statutes are:

• A registered agent should have a physical street address in this state. This is also known as the Arizona registered agent office. P.O. boxes for RA services are unacceptable.
• A statutory should be at least 18 years old if they are an individual
• One of the important Arizona registered agent requirements is their availability. They should be available during regular business hours in order to accept legal documents or business notifications.
• If your agent is a firm then they should have proper authorization to conduct business in Arizona.

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Can I be my own registered agent in Arizona?

Yes, you can be your own registered agent in Arizona. It is important to ensure you are compliant with the Arizona Statutes, regulations, and requirements as required in this state. As an individual, the following criteria’s need to be met:

• To be a resident agent in Arizona, you should be over 18 years of age
• You can provide registered agent services in Arizona if you have a proper physical street address and not a PO Box address
• You should be available during working hours through the week

How to choose a registered agent in Arizona?

Arizona is one of the top states when it comes to starting a new company or moving your existing business. The state has a business-friendly climate and low average property taxes. The corporate and individual income tax rates are also lower as compared to some of the other top states. However, you will need to comply with certain state requirements like it is mandatory to appoint a statutory agent in Arizona.

• Look for a resident agent service who has knowledge of business entity and compliance rules of this state
• They should have a trained staff with experience in handling and forwarding of SOP documents
• The agents should have in place state-of-the-art processes that can handle, sort, and deliver crucial business documents
• A reputable Arizona statutory agent will provide additional compliance tools so that annual state requirements are fulfilled
• The RA services should keep business hours
• A nationwide registered agent service like IncParadise not only possesses necessary knowledge and expertise but can help you with other aspects of managing a company in this state.
• Registered agent services in Arizona should be able to provide reliable software like the Entity Management Software by IncParadise

Why appoint a professional Arizona registered agent service?

The objective behind conducting an Arizona registered agent search is to find the most reputable and professional service. Most states in the USA have made hiring a registered agent a legal requirement and the same is true for Arizona. The most crucial aspect though is that your chosen registered agent should be available every business day. You cannot afford to miss out on receiving an important state document or a service of process (SOP). Missing an annual report submission notification can cost your business dearly. If you appoint a statutory agent in Arizona then there are several benefits that you will enjoy. They are:

• One of the main benefits of hiring a statutory agent vis à vis being your own agent is speed. Professional RA services are faster and reliable when it comes to providing business services.
• A reputable registered agent in Arizona has years of experience working with multiple businesses. They also possess the resources as well as staff necessary for receiving services of the state.
• A top statutory agent service like IncParadise can manage businesses across multiple states. This is especially beneficial, if you are planning to expand your business in several other states apart from Arizona.
• Privacy is one of the important registered agent services in Arizona. They will ensure your address is not on public records thus reducing junk mail. Your private information will also remain protected.

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How to change a registered agent in Arizona?

Different businesses have different reasons for changing their registered agent. Some companies need to change the agent as they are moving to a new state while others may want to change as they are not receiving the desired services. In order to change your registered agent in Arizona, you will need to complete and submit the Statement of Change form. The forms may differ according to the business structure. A corporation has to file the Corporation Statement of Change of Known Place of Business or Statutory Agent. A Limited Liability Limited Partnership has to file the Amendment to Certificate. The fee for changing your agent will be different based on entity structure. There are certain steps that may be involved. They are –

• In order to appoint a statutory agent in Arizona, you will need to choose one first.
• Conduct your search and select an agent according to your business requirements.
• Notify your current registered agent that you will be discontinuing their services.
• Now, complete and submit the Arizona Statement of Change form for your entity.

Want to change your Arizona registered agent?

Choose IncParadise as Your Arizona registered agent!

If you are planning to register a new business in Arizona then it is mandatory to hire and maintain a registered agent in this state. You will need to conduct an Arizona registered agent search so that you can find a professional service. IncParadise, one of the reputed registered agents in this state and is compliant with all Arizona registered agent requirements according to Arizona Statutes.

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.

Arizona Foreign Qualification

Arizona offers plenty of opportunities to businesses especially those planning to expand their entity or trading. The state provides a pro-business environment and a wide variety of tax incentives that can help lower your operating costs. The state has a strong transportation and logistics infrastructure and availability of a skilled workforce can make conducting business in this state almost a breeze. If you want to move your existing business from another state to this state then foreign qualification in Arizona is the process that you should opt for.

What is Arizona foreign qualification?

If you have already registered a corporation or an LLC in any state in the USA but are thinking of expanding your operations in Arizona then it is possible through a specific process. This process is known as foreign qualification in Arizona. The advantage of this process is that you will be able to operate your company in multiple states without the need to register or incorporate a new company. As a result, you will be able to operate your business in your home state (state of incorporation or registration) as well as the new state (Arizona).

Example: You have formed an LLC in Connecticut by filing the Certificate of Organization. Now, Connecticut will be known as your home state or home jurisdiction for the purpose of foreign qualification. You want to move or expand your LLC to Arizona. One option will be to close your Connecticut LLC and start a new domestic LLC in Arizona. If you don’t want to close your existing business then you can apply for Arizona LLC foreign registration. This process will provide you with the authority to transact business in this state.

Doing business in Arizona

When a business corporation, limited-liability Company, or any other form of entity is thinking of operating in any state other than their home state then foreign qualification is required. When we talk of operation, it signifies transacting in the new state or doing business. Foreign qualification in Arizona is based on transacting or doing business. There is a list of activities that are not considered as doing business and hence, any other activity apart from these will require you to apply for foreign business registration. According to the Arizona Revised Statutes, the following activities do not constitute doing business in Arizona.

• Maintaining, defending, or settling any legal action, lawsuit, or other proceedings in the state
• Holding any meetings of your company officials like board of directors, members, and shareholders
• Maintaining a business bank account
• Selling your product or service through an independent contractor
• Maintaining an office or agency for the transfer or exchange of a corporation’s own securities
• Acquiring mortgages or creating indebtedness through borrowing funds in Arizona
• If you own any real or personal property
• If your business transaction is a part of interstate commerce

Arizona Foreign Qualification Process

Arizona foreign business registration is also known as foreign qualification. This is a process that will vary according to the type of entity you are planning to form. So, the registration of a name or the authority to transact a business in this state will be different for an LLC or a corporation. If you are planning to foreign qualify your LLC or corporation then let’s delve deeper into the specific requirements of this state.

Arizona Foreign Corporation registration

If you have already incorporated in another state but want to expand your business to Arizona then you will need to undergo foreign qualification. There is a process for Arizona foreign corporation registration and it is governed by the 2019 Arizona Revised Statutes, Title 10 – Corporations and Associations, Chapter 15 – Foreign Corporation. As a part of the process, you will need to obtain an authority to transact business in this state. Let’s look at the important requirements for Arizona foreign business registration.

1. Corporate name of foreign corporation

In order to register an Arizona foreign corporation, you will need to register a business name. According to AZ Rev Stat § 10-1506 (2019), the name of a foreign corporation should include words and abbreviations like “corporation,” “incorporated,” or “inc.,” or “corp.” among others. The name should not include any language in the corporate name, which implies that your foreign corporation has been organized for any purpose other than what is being permitted by section 10-301.

2. DBA or Trade Name

If the Arizona foreign entity search reveals that your corporation’s existing name or chosen name is not available then you will need to opt for a DBA (Doing Business As) name. This is also known as a trade name in this state. Once you choose a DBA name, you need to conduct a DBA availability search on the website of the AZ Secretary of State. If the chosen trade name is available then you need to submit the Trade Name Registration Application. There is a filing fee of $10.

3. Registered Agent

Whether you form a domestic corporation or register an Arizona foreign corporation, service of process is a procedure that is applicable to all types of entities. Service of process is handled by a reputed or state-listed registered agent. Hence, it is mandatory by law for foreign corporations to hire and maintain a registered agent in this state. According to AZ Rev Stat § 10-1510 (2019), your Arizona foreign business registration will be rejected if you have not hired a registered agent in this state. We at IncParadise are one of the top Arizona registered agents and have helped several domestic and foreign entities to incorporate in this state.

4. Application for Authority

There is a process towards registration of Arizona foreign corporations. You will be required to file proper documents also known as the application for authority to transact business or conduct affairs in Arizona. This is governed by AZ Rev Stat § 10-1503 (2019) and has to be filed with the Arizona Corporation Commission – Examination Section. There is a fee of $175 for regular processing.

Do you want to register a foreign Corporation in Arizona?

Arizona Foreign LLC registration

A limited-liability company is one of the most popular business entities that entrepreneurs opt for. If you have already formed an LLC and are thinking of opening a branch company or expanding your operations in Arizona then this is one of the top pro-business states in the nation. The process to expand your business is by opting for Arizona LLC foreign registration. This is also known as foreign qualification and will be governed by 2019 Arizona Revised Statutes, Title 29 – Partnership, Chapter 4 Arizona Limited Liability Company Act, Article 9 Foreign Limited Liability Companies. The Arizona foreign business registration process for an LLC may be different from that of a corporation.

1. Business Name

If you plan on moving your business through Arizona LLC foreign registration then the first step would be to register a business name. You can register your existing business name if it is available. You can conduct an Arizona foreign entity search also known as name availability search. It is important to ensure your name has words or abbreviations like “limited liability company”, “L.L.C.” or “LLC”. If the existing LLC name is available then you can register the said name using the Application to Register Foreign Limited Liability Company Name. You will need to submit this application with the Arizona Corporation Commission – Examination Section along with a non-refundable fee of $10.

2. DBA or Fictitious Name

If the Arizona foreign entity search reveals unavailability of your existing LLC name then you can opt for a Doing Business As (DBA) name also known as a fictitious name or an assumed name. You will need to conduct a name search for the fictitious name. If it is available then register the same by filing the Trade Name Registration Application with the office of the Secretary of State pursuant to AZ Rev Stat § 29-804 (2019). There is a fee of $25.

3. Registered Agent

One of the important aspects of Arizona LLC foreign registration is service of process. This is executed by a registered agent in the state. According to AZ Rev Stat § 29-811 (2019), a foreign LLC has to continuously maintain a registered agent in the state. A reliable registered agent service like IncParadise, will not only fulfill service of process requirements in Arizona but also assist with all forms of Arizona foreign business registration and annual maintenance requirements.

4. Foreign Registration Statement

Once you have registered a business name and hired a registered agent in the state, the next step would be to file the right paperwork for Arizona LLC foreign registration. You will be required to file the certificate of registration also known as Foreign Registration Statement pursuant to AZ Rev Stat § 29-803 (2019). You will need to submit a Certificate of Existence also known as a Certificate of Good Standing acquired from the home state along with the registration statement. This statement has to be submitted with the Arizona Corporation Commission – Examination Section, along with a fee of $150.

Want to start a foreign LLC in Arizona?

Need Any Assistance in Applying for Arizona Foreign Qualification?

If you are planning to move your company or expand your business to Arizona then the state promises good regulatory laws, pro-business environment, committed workforce, state grants, and small business incentive programs. You don’t have to necessarily close your existing business to move to this state. You can simply apply for Arizona foreign business registration. This will ensure you are able to operate your company in Arizona as well as your home state.

Doing Business in Arizona

Over the last few decades, technology and innovation enabled industries in Arizona have grown in stature. Today, the state has one of the best collaborative business ecosystems in the country. The diverse tech ecosystem is helping towards accelerating innovation. By setting up your business in this ecosystem, you will not only benefit from a robust network of accelerators, incubators, and co-working spaces but will also be able to apply for a variety of Arizona small business incentives.

Why do businesses prefer doing business in Arizona?

Arizona is one of the best states for creating your business footprint. There are several factors that help entrepreneurs to establish and operate successfully like easy access to Arizona small business funding. In a world fueled by high competition and adaptability to evolving technology, an ideal location with a business-friendly ecosystem can be quite helpful. So, let us look at some of the factors that will help you to conduct your business in Arizona. These include:

• Tax Friendly State – One of the reasons why small business owners prefer to start a company in Arizona is low taxes. In fact, the state has a flat income tax rate of 2.5 percent, which is lower than several other states with flat income tax rates like Illinois, North Carolina, and Georgia. There is no estate or inheritance tax in this state. This will help in lowering the tax burden. On top of this, there is a wide variety of tax credit programs that you can participate in or apply for. These Arizona small business incentives programs have been designed to reduce your tax liability.

  Example: If your business creates high-quality employment opportunities in this state then you will be able to apply for the Quality Jobs Tax Credit (QJTC), which is a nonrefundable tax credit program. Similarly, if your business requires the use of heavy machinery then one of the top Arizona small business incentives programs is the Transaction privilege tax (TPT) exemption on various machinery or equipment.

• Business-Friendly Environment – Arizona is quite famous for offering both new and existing businesses an environment that is conducive for rapid growth. Some of the factors that contribute to the business-friendly environment include:
  • Good tax policies including tax exemptions
  • Availability of Arizona small business funding programs
  • Access to a diverse pool of highly motivated workforce
  • Accelerator and incubator programs for startups
  • Growing as a hub for testing as well as scaling of new technology
  • Top startup ecosystem in greater Phoenix
• Strategic Location – One of the salient aspects that is often undermined is the location of Arizona. If you look from the business perspective then it shares an international border with Mexico and a state border with Colorado, Utah, and New Mexico. It has a robust transportation and logistics infrastructure connecting the rest of the nation through Interstate highways.

Small Business Incentive Programs and Grants in Arizona

Arizona small business grants have been designed to provide small businesses with a financial helping hand. These grants are quite useful in the early stages or new company formation stage and even in the operational stage. Apart from grants, there are several other Arizona small business funding solutions available including traditional financing options as well as alternative financing sources. These funding options can help you to explore new opportunities for expansion of your company. You can even use them to conduct research and development (R&D) of new services or products. Let us get to know some of the top grants and other funding programs in the state.

Arizona Commerce Authority Programs

The Arizona Commerce Authority (ACA) is a leading economic development organization with the objective to assist with the growth and strengthening of the state’s economy. They have a three-pronged approach that focuses on recruiting, growing, and creation. They also offer a wide variety of Arizona small business grants and other funding programs that your business can leverage. They have programs that even provide tax relief and small business incentives. Let us take a look at some of the top Arizona small business funding programs by the ACA.

Tax Relief

The Arizona Commerce Authority (ACA) provides certain tax relief programs to small businesses. They are beneficial as these programs will help reduce your tax burden in this state. The Foreign Trade Zone (FTZ) program is one such solution. If your business is located in a zone or sub-zone that comes under a FTZ then you may be eligible for a maximum of 72.9 percent reduction in personal and state real property taxes. Similarly, the computer data center program is one of the top Arizona small business incentives programs. It provides exemptions in Transaction Privilege Tax (TPT) as well as use tax on qualifying purchases of computer data center equipment. This is applicable on the state as well as county level.

Talent and Training

The Arizona Commerce Authority (ACA) programs play a key role in preparing the state for creation of manufacturing jobs in the near future. Established businesses as well as startups in their growth stage are creating a higher number of jobs in the advanced manufacturing industry. This is due to the availability of Arizona small business funding and certain tax credit programs like the Quality Jobs tax credit and the Qualified Facility tax credit programs. You can also benefit from the Arizona Advanced Technology Network, which will provide you with an educated and highly skilled talent pipeline and thus cater to a rapidly expanding market.

Innovation and Entrepreneurship

There are certain programs that are considered to be a different type of Arizona small business incentives program like the Arizona Innovation Challenge (AIC). This is the largest business plan competition in the nation and finalists can receive an award of approximately $100,000. You can even gain access to their Venture Raise and Venture Scale programs that provide customized support. These are focused programs or accelerator courses that will introduce you to the world of startup financial health, various funding options to choose from, and pitching to investors. Apart from this, there is the pioneering IAM program that will provide you with necessary technical guidance and coordination for deployment of automation.

Small business opportunities

The Arizona Commerce Authority (ACA) plays a vital role in the creation of small business opportunities through several Arizona small business funding programs. The Arizona State Trade Expansion Program (AZSTEP) is quite a popular program for entrepreneurs like yourself. This program will assist you to enter export markets as a first time business owner or even help expand into newer markets. Then there is the State Small Business Credit Initiative (SSBCI), which is a federal program administered by the Department of Treasury. You will be able to participate in three programs under this, which are Arizona Loan Guarantee Program, Arizona Venture Co-Invest Program, and Arizona Multi-Fund Venture Capital Program.

Manufacturing opportunities

The economy of the state of Arizona relies heavily on traditional and technology driven manufacturing. So, if you are entering the manufacturing industry then there are several programs that will make doing business in Arizona financially less stressful. There are several sales tax exemptions on various manufacturing equipment like –

• Machinery or equipment that you will use directly in manufacturing
• If you use equipment for directly in producing or transmitting electrical power
• Any equipment or machinery being used for research and development

Rural economic development

If you are planning to start your Arizona business in a rural area or community then there are several targeted programs that you can benefit from. If you set up your company in an opportunity zone then there are dedicated Arizona small business incentives programs that you can participate in. In fact, Arizona is ranked #2 in terms of attracting opportunity fund capital. There is a budget of $2.29 billion allocated by the state for opportunity zones.

International trade

The Arizona Commerce Authority (ACA) is responsible for creating international trade opportunities for new and existing businesses. It has partnered with the Small Business Administration (SBA) for facilitating the Arizona State Trade Expansion Program (AZSTEP). As a part of the initiative, you will be able to participate in the international trade shows and expos while gaining ExporTech export education and planning development simultaneously. There are dedicated and innovative cross-border collaboration programs with Europe, Israel, Mexico, Republic of Korea, and Taiwan.

Form a Startup in Arizona Today!

Other Grants in Arizona

One of the key advantages of doing business in Arizona is the access to a wide variety of grants and tax exemption programs. These small business grants in Arizona play a key role in helping startups, home-based businesses, and first time entrepreneurs to grow sustainable businesses. Grants and other funding opportunities are provided at the state as well as county level. There are several grant programs administered by the government while others are being provided by private organizations. Some of the top grant programs include –

• Small business grant programs available in various cities or at a local level like the PHXbizGrants (City of Phoenix), Phoenix Flash Grants Program, City of Mesa Business Export Assistance Program (BEAP), and Town of Pinetop-Lakeside Façade Grant Program among others.
• There are women based grant programs like the highly popular Amber Grant where you can get a minimum grant of $10,000 and maximum of $25,000
• There is the Fearless Fund for under-resourced entrepreneurs where you can apply for pre-seed level or series A financing
• You can apply for Arizona advanced manufacturing facilities grant where you receive a maximum grant of $75,000.

Ready to Start a Business in Arizona!

If you are planning to start a new company then you will require some form of financial assistance in the initial stages. The Arizona small business incentives programs as well as other grants and loans can help fulfill financial requirements of your company. There are several types of funding options and opportunities that you can avail of in this state. You can even apply for tax credit and exemption programs that will lower your financial burden of doing business in Arizona.

Arizona Business Tax

Arizona business tax includes a wide range of taxes and they are levied on individuals and businesses. The taxes are normally levied on the profits earned by a company but can also be on the sales and purchase of products and services. A business tax is basically collected by the state government as it is a source of income for the state. Whether you register a domestic entity or operate as a foreign company, taxes are an integral part of this state’s annual requirement. Since every business will be levied a different type of tax, you may need an Arizona business tax Calculator to move forward with your overall tax planning including accounting and bookkeeping.

What taxes do businesses pay in Arizona?

Arizona is quite a popular destination for first time business owners and one key factor is its good tax environment. The state has one of the lowest flat tax rates in the USA and thus Arizona business tax climate is quite favorable for both domestic and foreign entities. You can choose to form different types of entities in this state right from a limited-liability Company to a C Corporation, sole proprietorship, general partnership, and an S Corporation. Each type of entity will have a different tax status in this state. Depending on the entity structure and the primary business activity, your company may have to file a single form of state tax or multiple taxes like Arizona LLC taxes including individual and state taxes. Let’s try to understand the different types of taxes applicable to new and existing businesses in this state.

Arizona corporate income tax

There are different categories of income taxes in the state and one of them is the Arizona corporate income tax. It is also known as the corporation tax and is levied on any taxable profits generated from your business. The taxable income may include several items like capital gains, investment profit, and trading profit. This type of Arizona Corporation taxes can be reduced through common tax-deductible expenses like operating expenses and employee salaries or bonuses among others. Currently, the rate of corporate income tax in Arizona is 4.9 percent.

Pass-through entity (PTE) tax

The Pass-through Entity (PTE) tax is considered as an entity-level income tax. This type of tax is applicable to mostly partnerships and subchapter S corporations. Currently, the rate of this Arizona corporate income tax is 2.50 percent of the income attributed to the S Corporation or partnership’s shareholders or resident partners. It is also applicable on any income derived from various sources within Arizona and attributed to nonresident shareholders or partners.

Small business income (SBI) tax

The Arizona Small Business Income Tax (SBI) is a fairly new form of tax that is often considered under Arizona LLC taxes. This allows an individual taxpayer to report his or her small business income on a separate return. There is a flat tax rate of 3 percent. It is important to note that the Arizona SBI tax return has to be filed along with the regular income tax return.

Transaction privilege tax (TPT)

The TPT is one of the most important forms of Arizona business tax. It is commonly referred to as the state sales tax. This type of tax is subjected to an individual or company for the privilege of conducting business in this state. There are various business activities that are subjected to the transaction privilege tax like advertising, telecommunications, residential rental, retail, and restaurants among others. You will need to use an Arizona business tax Calculator as the TPT tax rate varies according to the type of business activity and the county or city your company is operating from.

Local Arizona Taxes

There is the Arizona business tax also known as state tax and then there is the local tax. The most common form of local tax is the use tax. The use tax is often seen as a complement to the Transaction privilege tax (TPT). It is also filed using the TPT return. There are certain conditions in which this type of Arizona LLC taxes will be applicable. They are –

• If you make any out of state purchases towards operating your company and have not paid any sales tax on it or if the sales tax is less than that of Arizona use tax rate, then you will be required to file use tax.
• If you have purchased goods using a resale certificate, and if such goods have been stored, used, or consumed within the state contrary to the actual purpose stated in the certificate then will be required to pay use tax.

Arizona State Employer Taxes

State employer taxes are also known as Arizona Withholding Tax. This is additional to any Arizona corporate income tax and is purely based on the situation where your company has employees. If you have employed the services of people and are paying salary then you will need to withhold Arizona income tax from those employees. This is applicable for services being rendered within Arizona. This type of Arizona Corporation taxes is calculated on the basis of a percentage of your employee’s gross taxable wage. There are certain situations in which the withholding tax is not applicable like if you pay salary or wages to a nonresident employee.

Industry Taxes

When it comes to starting a new business in Arizona, it is important to know that you might be levied taxes if your business is connected to specific industries. These can be in the form of state tax or local taxes. For example – if you are operating from Mesa, AZ and are planning to invest in industrial or commercial property then there will be an assessment ratio for property taxes at the rate of 16.5 percent of the limited property value (LPV). Industries like aviation fuel will attract Arizona business tax. If you are producing aviation fuel or importing it into Arizona then the tax rate will be 5¢ per gallon.

Are you thinking of forming a new business in Arizona?

How Arizona Businesses are Taxed?

Once you form a new business in Arizona, your company will have to be compliant with both federal and state taxes in order to maintain good standing with the state. Your company may be required to file Arizona LLC taxes or some other form of taxes depending on the entity structure. The type of taxes levied will also vary according to the location of your company, the business activity, industry, employment. Let us look at the different types of entities and their tax obligations in this state.

Taxes for an LLC

If you are planning to register an Arizona limited-liability company then for tax purposes, it will be considered a pass-through entity. As a result, instead of filing Arizona corporate income tax, you will be required to file personal income tax at a flat rate of 2.50 percent. In a pass-through entity, the business income will pass through to the owners and other members. Apart from this income tax, there are other forms of Arizona LLC taxes that you may be required to file in this state.

Taxes for a C Corporation

If you are planning to incorporate in Arizona then you will be required to file Arizona corporate income tax. The current tax rate for corporate taxes is 4.9 percent. C Corporations may be required to file some of the following taxes –

• Transaction privilege tax (TPT) – This is a mandatory tax if you are selling a product or promoting a service specifically mentioned by the Arizona Department of Revenue.
• Use tax – This is one of the important Arizona Corporation taxes and is mostly levied for different business activities by specific counties.
• Corporate income tax – If you incorporate in this state then you will be required to file the Arizona corporate income tax.
• Individual Income tax – Shareholders and directors of a corporation will have to file individual income tax returns.
• Withholding Tax – If your company has employees then this tax return has to be filed.
• Other Taxes – Depending on your business activity and industry, you may be required to file certain other taxes. These include severance tax on metalliferous minerals, luxury tax on liquor, and workers’ compensation insurance premium tax among others.

Taxes for S Corporation

If you have started an LLC or a C Corporation and elect S Corporation tax status then one of the benefits is that you will not be subjected to the Arizona corporate income tax. S Corporation is a pass-through entity like an LLC hence each member or owner would be required to file personal income tax. S Corporations in this state may choose to file the Arizona Pass-Through Entity (PTE) income tax. Of course the PTE election needs to be done by the S Corporation prior to the due date or extended due date for filing of the state income tax return. You will be required to file Arizona Form 120S for the PTE election. This is one of the important Arizona Corporation taxes and the rate is a flat 2.50 percent of the income attributed to the S Corporation’s shareholders.

Taxes for a Sole Proprietorship

A sole proprietorship is one of the easiest forms of businesses. Once you form this type of company, you will need to report your profits by filing the individual income tax return. Apart from this, depending on the type of activity, you may be required to file an Arizona business tax in the form of transaction privilege tax, and use tax. You can also choose to file the Small Business Income Tax (SBI) where you have to report your small business income on a different return (Arizona Form 140ES-SBI) at a flat rate of 3.0 percent.

Taxes for Partnerships

If you form a partnership company in Arizona then the applicable taxes would be similar to that of taxes for sole proprietorships, S Corporations, or Arizona LLC taxes. Partners will be required to file individual tax returns based on the income they have earned through the business. Partnerships can also elect to file the Arizona Pass-Through Entity (PTE) income tax. If you are selling specific products or services then you will be required to file sales tax or the transaction privilege tax. You may also be required to file withholding tax.

Ready to Incorporate Your Arizona Company?

Arizona provides just the right business environment, good policies and regulations, and strong infrastructural support to new and existing businesses. You can choose to form different types of entities like Limited Liability Company, partnership firm, sole proprietorship, C Corporation, and S Corporation. Once you have formed or registered your company, you will need to ensure fulfillment of all annual state requirements including filing Arizona business tax. IncParadise can help you by providing information and assistance pertaining to business taxes and annual requirements.

Doing Business As or DBA in Arizona

A “Doing Business As” (DBA) name is also known as a trade name in Arizona. When you start a sole proprietorship or a single member LLC in Arizona, you may be required to list your business name with the state. Once you file a trade name in Arizona, it will be considered as the official legal name of your company. It is important to understand that not all businesses opt for a DBA. Some entities prefer a business name like CampusLogic while others prefer to use their own legal name like Carol Danvers Sports Equipment.

What is DBA in Arizona?

It is essential to understand what a trade name actually is before you can apply for Arizona DBA online. If your company or any company plans to use a name that is different from your legal name then such a company will be considered to be using a DBA or trade name. It is also known as an assumed name or fictitious name. Generally speaking, the name of your company can be any of the ones mentioned below –

• Your name or name of the owner like Maurice Jensen Inc.
• Traditional business name like Axon Technologies
• Trade name or DBA like Natalie’s Pie

When do you need a DBA in Arizona?

If you are planning to start a business and are a newcomer then there are certain aspects of operating a company that you need to be familiar with. One such aspect is providing a name to your company. Small businesses and first time individual owners normally prefer to go with a DBA also known as a trade name. Once you identify a name, filing a DBA in Arizona becomes necessary. But why a DBA? Do you actually need a DBA? These are some of the important questions that may arise in your mind. So, let’s look at some of the common reasons for choosing an Arizona trade name –

• Type of Structure – The structure of your company may be a decisive factor when it comes to opting for and filing an Arizona DBA online application. The most common and easy to form businesses are sole proprietorships and partnerships. You may use your full legal name or a trade name if you are opting for either entity structures. Even a general partnership company can select a DBA name. This is because these types of entities are considered as unincorporated businesses as they are not required to file any business registration paperwork with the state. Even a single-member LLC can choose to use a trade name in Arizona.
• Franchises – A doing business as name can be extremely beneficial if you are planning to operate a franchise business. A franchise owner may not require a DBA. As a franchise owner, you may file a trade name in Arizona to establish your company’s identity as a local or state business.

  Example: You bought a local Dickey’s BBQ restaurant franchise. Franchisees are normally formed as a corporation or ab LLC. Now, you form a franchise under Fastfood Business LLC. You will need to ensure your DBA is “Dickey’s BBQ”. This will help your state (Arizona) to know that you are “doing business as” the franchise you have joined.

• Operate a separate business – Normally, business corporations (S and C corporations), limited liability companies (LLC), and limited partnerships (LP) are technically not required to file a ‘doing business as’ name. However, if the state laws or local laws (city or county) requires these entities to apply for Arizona DBA online then you will need to choose a trade name. This requirement changes if you are planning to operate multiple businesses under the same name. If you were to expand your business area and open a new company then filing a DBA will spare you the hassle of registering or incorporating the new company.

Filing DBA in Arizona for LLC and Corporation

A DBA (doing business as) is known as a trade name in the state of Arizona. Whatever structure of business you choose like an LLC, general partnership, or a sole proprietorship, filing a DBA in Arizona will ensure registration of your company name. If you are wondering how you can look up a DBA in Arizona then there is a specific process to apply for and obtain a trade name certificate. The process as well as the fee may be different from that of the standard business name reservation process and fee.

Do Arizona Trade Name Search

If you want to apply for Arizona DBA online then the most important thing is to ensure it is compliant with Trade name laws of the state as well as other business name related rules and regulations. Once you have carefully thought of a company name, the next step would be to conduct an Arizona trade name search also known as DBA name availability search. This search is facilitated by the website of the AZ Secretary of State as well as the Arizona Corporations Commission website. It is important to note that you can file a DBA only if the search reveals availability of your chosen name. If your company name is not available then you will need to change the name and search again. You can conduct the name search using any of the following criteria’s –

• Trade name or DBA
• Statutory agent name
• Principal name
• Entity ID

Register your Arizona DBA

Once you conduct an Arizona trade name search, you will know if your chosen name is available or not. If your chosen name is available then the next step is to register the assumed name. You will need to submit the Trade Name Registration Application with the office of the Secretary of State pursuant to AZ Rev Stat § 44-1460 (2023). There is a filing fee of $10. If you want to expedite the process then there is an additional fee of $25.

Do you need help with an Arizona DBA?

Managing Arizona DBA

Once you file an Arizona DBA online application, the process will share certain information regarding your company with the state. The people of the state will know the name under which your business operates legally. The state of Arizona has rules and regulations pertaining to various aspects of a DBA or assumed name. These laws state the requirements for renewal, changing, or canceling of the trade name in the jurisdiction the business is operating from. Let’s look at the various processes applicable for managing an Arizona DBA.

How to renew Arizona DBA?

In most states, once you register a DBA then it will need to be renewed. Different states in the nation have different renewal dates or duration of expiry of an assumed name. Once you file a trade name in Arizona, it will expire after a period of 5 years from the date of registration. You will need to renew it for another five-year period and this is governed by the 2023 Arizona Revised Statutes, Title 44 – Trade and Commerce, § 44-1460.02. The Trade Name Renewal application has to be filed online with the office of the Secretary of State. There is a renewal fee of $10.

How to change Arizona DBA?

Once you have filed an Arizona DBA online application, the only way to change your business name is by canceling the existing name and filing an application for a new trade name. The process is easier for standard business names as all you have to do is submit Articles of Amendment.

How to cancel Arizona DBA?

You can cancel a trade name only after filing a DBA in Arizona. Once the name has been registered, you can file the online Trade Name Cancellation application with the office of the Secretary of State pursuant to AZ Rev Stat § 44-1460.07 (2023). There is no fee for cancellation.

Need Any Assistance in Filing Arizona DBA?

The process to file a trade name in Arizona requires you to provide accurate information while being compliant with the federal trademark laws as well as Arizona Revised Statutes. Conducting an Arizona trade name search is also of utmost importance as it will ensure your chosen name is not rejected by the state. IncParadise can assist you with this process. We have expertise and knowledge regarding the Arizona state rules and regulations pertaining to trade names and new businesses.