General Guide to Company Incorporation in Arizona
Updated on Tuesday 21st September 2021
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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 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 needs 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 a 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. If you would like to know more in this topic and about how to start a business in Arizona, feel free to talk to us.
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 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 real estate assets are entitled to pay the sales tax. This tax is imposed for companies that produce all kinds of goods but with certain exceptions for grocery, medicine, machinery, medical devices, and chemicals that are used in Arizona for research and science purposes. The sales tax is imposed on 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 that 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 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. Make sure you talk to us when opening a business in Arizona.
Do I need a merchant account for my company in Arizona?
Yes, if you offer 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. Feel free to discuss more on how to start a business in Arizona with our consultants.
Accounting services in Arizona
There are companies that have an accounting department and there are firms that 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 on a company in Arizona. This kind of plan will reveal important facts about the ideal clients, 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 your needs. We remind you that opening a business in Arizona can be a process overseen by our agents.
4. Don’t forget to protect the intellectual property
Companies with activities in sectors like entertainment, research, and innovations should protect 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 the big cities in Arizona, with more than 160,000 inhabitants and the highest average revenue. More about how to start a business in Arizona can be discussed with our agents.
Types of businesses you can open in Arizona
As mentioned above in the article, Arizona is an excellent business destination for both local and foreign investors. In the following lines, you can discover some business ideas from which to be inspired if you want to start a business in Arizona.
1. A transportation company - Such a business idea is welcome for those who want to grow their profits in Arizona. In addition, infrastructure is a great advantage for such a business in this state.
2. An import and export company - This business is among the most successful ones and generates substantial revenues. The connections with the other American states, but also with the collaborators from other continents can develop such a company quite quickly.
3. A restaurant in Arizona - Another area that may interest you is gastronomy. Regardless of the direction you approach, the business will be profitable. In addition, for decent costs, you can collaborate with the local producers.
4. A maintenance company - A good business can also be one that offers maintenance services for household consumers who use home appliances. In addition, the company may expand to other US states.
5. An insurance company - Entrepreneurs can choose to open an insurance company in Arizona. The formalities are quite simple, and once the license is obtained, the company can operate on the market.
6. An investment company - Foreign entrepreneurs who have experience in the field of investments can generate even more profits with the help of such a company. Once the business structure is established, the company can start its activities immediately.
7. A cleaning company - If your investment budget is limited, then you can turn your attention to a cleaning company in Arizona. Such services can be offered for both residential and commercial clients.
8. A car rental company - In Arizona, you can open a multitude of businesses, depending on your budget. A car rental company can address both regular customers and businessmen. And in this case, the formalities are quite simple and can be explained to you by our team of company formation agents in USA.
9. A hotel in Arizona - With a reasonable budget, but also a complete business plan, you can open a hotel in Arizona. This type of business can be profitable from the start, especially if the hotel is open in one of the areas of interest in Arizona, considering the rate of tourism.
10. A real estate company - Renting or selling real estate properties will always be a reliable source of income. This type of business is among the favorites of foreign entrepreneurs due to its fast profits and diversified customers.
11. A construction company - The construction field is constantly developing, and a business in this area is profitable from the very beginning. However, more investment is needed and a solid business plan that includes all the details. We remind you that you can count on our specialists if you want help in developing this idea.
12. A digital printing company - This type of business can serve medium and large companies, therefore, you can turn your attention to such an activity. Even if the investments are quite large at the beginning, they will be amortized in a relatively short time.
13. A bakery in Arizona - Depending on the budget set for a business in Arizona, a bakery shop can be a successful idea. However, it is recommended to carefully analyze the market, to know what kind of customers to go to.
14. Sports equipment supplier - Foreign entrepreneurs can set up different types of businesses in Arizona. One of these may involve the supply of sports equipment or even a retail store that attracts a certain niche of customers.
15. A car service - This type of business is successful regardless of the city in which you open it. In addition, start-up costs are affordable, and maintenance is commensurate.
16. An IT company - As technology continues to grow in all areas, and companies need tailored services. You can set up an IT company to provide maintenance to other companies or different media and applications.
17. A company in agriculture - Agriculture is also a priority sector in Arizona, and business in this field is appreciated by local and foreign investors. A farm can be the kind of profitable business you are looking for.
18. An energy company - Foreign investors can discover the benefits of the energy field in Arizona, especially in the context in which the emphasis is on renewable energy. Authorities may impose other conditions in addition to the business license.
19. A healthcare company - Many entrepreneurs have had to rethink their businesses and move to more profitable ones in recent years. This is how the health sector is one of interest, and companies can be set up quite easily.
20. An online store - The e-commerce field is constantly evolving all over the world, including the USA. If you have relocated to Arizona and want to open an internet business, the activities and opportunities are multiple.
For a better understanding of the terms and conditions related to company registration in Arizona, please feel free to contact our team of company incorporation consultants in America.