I
United States

United States

Company Formation in Arizona

State of Arizona — Arizona Corporation Commission (ACC)

Formation Time
2–4 business days
Min. Capital
No minimum
Corporate Tax
4.9% flat state corporate income tax
Foreign Ownership
100%

Overview

Arizona is the premier growth hub of the American Southwest, powered by the booming Phoenix metropolitan economy ('Silicon Desert'). Renowned for its friendly business environment, Arizona boasts a low 4.9% flat corporate income tax, an ultra-low 2.5% flat personal income tax (the lowest flat income tax rate in the US), and a truly standout structural benefit: **Arizona LLCs have zero annual report filing requirements and zero annual state report fees ($0/year)**. Phoenix has emerged as the semiconductor capital of the United States, hosting historic multibillion-dollar foundry investments from TSMC (Taiwan Semiconductor Manufacturing Company) and Intel, alongside massive logistics, aerospace, autonomous vehicle, and solar energy corridors.

$0 annual report fee for LLCs
2.5% flat personal tax
Silicon Desert chip hub
Maricopa publication exemption
Low $50 state fee

Why Choose Arizona

1

$0 annual report fee for LLCs — Arizona requires no annual reports and charges zero annual state fees

2

Lowest flat personal income tax rate in the US (2.5% flat)

3

Low 4.9% flat state corporate income tax rate

4

'Silicon Desert' — semiconductor capital of the US (TSMC $40B+ foundry, Intel, Microchip)

5

Phoenix is the 5th most populous city in the US with massive population and corporate in-migration

6

Low initial formation fee ($50 for LLCs via Arizona Corporation Commission)

7

Strategic logistics gateway connecting California ports with the Southwestern and Texas markets

8

Remote US business banking integration with tier-one financial institutions

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
LLC100%N/A (member or manager managed)NonePass-through taxation; 0% state tax for foreign non-resident owners with no US incomeSemiconductor supply chain, tech startups, e-commerce, real estate, consulting, logistics
Corporation100%1None21% federal CIT; 4.9% flat Arizona corporate income taxHardware manufacturing, engineering firms, venture-backed enterprises

Step-by-Step Formation Process

1

Entity Name Verification

1 day

Search Arizona Corporation Commission eCorp registry.

2

Filing Articles of Organization

2–4 business days

Submit formation documents via ACC eCorp.

3

Publication Exemption Verification

1 day

Entities formed in Maricopa County (Phoenix) are exempt from publication as ACC publishes electronically.

4

Federal EIN Issuance

3–10 business days

Obtain Employer Identification Number from IRS.

5

FinCEN BOI & Corporate Banking

3–5 days

Submit federal beneficial ownership report and establish US corporate bank accounts.

Costs & Fees

Government / License FeeUSD 50+
Our Service FeeUSD 850 – 2,000
Annual RenewalUSD 0+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Arizona companies enjoy broad banking support from Western regional banks, national institutions, and digital platforms (Mercury, Relay).

Account Opening Time
3–7 business days
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

Western Alliance Bank (Phoenix HQ)JPMorgan ChaseMercuryRelayWells Fargo

Tax Overview

Corporate Tax
4.9% flat state corporate income tax; 21% federal CIT
Personal Income Tax
2.5% flat state personal income tax (lowest flat rate in the US)
VAT / Sales Tax
5.6% state transaction privilege tax (TPT, up to 11.2% combined local)
Capital Gains Tax
2.5% flat state rate (with 25% exemption for long-term gains)
Withholding Tax
30% federal statutory (reduced by treaties)
Double Tax Treaties
68 countries

Arizona LLCs have NO annual report filing requirement and pay $0 in annual state fees. Arizona Corporations file an annual report with a modest $45 fee.

Frequently Asked Questions

Is it true that Arizona LLCs have no annual report requirement?
Yes. Under Arizona corporate law, Limited Liability Companies are not required to file annual reports with the Arizona Corporation Commission, and there is zero ($0) annual report fee. This eliminates ongoing state filing deadlines and late penalty risks.
What is the publication requirement for Arizona LLCs?
Arizona requires LLCs to publish a notice of formation in an approved newspaper for three consecutive runs within 60 days. However, under current law, if your statutory agent is located in Maricopa County (Phoenix) or Pima County (Tucson), the ACC publishes the notice directly to its website, completely exempting you from newspaper publication fees. Incorp International registers clients in Maricopa County to bypass all newspaper fees.
Why is Phoenix called the 'Silicon Desert'?
Phoenix has become the epicenter of US semiconductor manufacturing, highlighted by Taiwan Semiconductor Manufacturing Company's (TSMC) massive $40+ billion mega-fab complex, Intel's $20 billion expansion in Chandler, and dozens of supporting advanced electronics, chemical, and robotics suppliers.
What is Arizona's Transaction Privilege Tax (TPT)?
Arizona does not have a traditional sales tax. Instead, it levies a Transaction Privilege Tax (TPT) for the privilege of doing business in Arizona, measured by gross receipts. For businesses delivering services outside Arizona, TPT generally does not apply.
Can foreign nationals incorporate in Arizona remotely?
Yes. Foreign founders can form and own 100% of an Arizona LLC or corporation without traveling to the United States. Incorp International provides the statutory agent and manages remote banking setup.
What is the personal income tax rate in Arizona?
Arizona levies a 2.5% flat personal income tax rate, which is the lowest flat income tax rate of any US state with an income tax.