Department of Revenue Portal
Department of Revenue Phone
602-255-3381
Name Reservation Required?
No
Taxpayer Portal
Comprehensive State Guide

General Business Information

ARIZONA:

When considering whether or not to start a small business, there are several factors to keep in mind while determining where you would start your business. Fit Small Business compiled a 2018 ranking of all 50 states to determine the best states to start a small business, using the following categories:

  • Taxes – This includes corporate, sales, property tax, individual income, and unemployment insurance tax rates. The ranking demonstrates how much you can expect that your business would have to pay in taxes in the state ranked.
  • Labor Market – This category was assessed by including unemployment rates well as education levels (% of adults ages 25 to 34 who have attained at least a bachelor’s degree). This is meant to measure availability of desirable employees and the overall strength of this market in the state ranked.
  • Cost of Living – This includes costs of utilities, grocery, healthcare, housing, and transportation.
  • Quality of Life – This category is based on access to education, physical safety, and healthcare.
  • Cost to Start a Business – Using per capita income in the state ranked, this is meant to evaluate costs to staff your business as well as the per sq. ft/year cost to rent a commercial building.
  • Startup Activity – Meant to illustrate how likely new businesses are to succeed or fail in the state ranked, this represents the # and survivability of new businesses in that state.
  • Access to Capital – This assesses the likelihood of your business attaining startup capital by evaluating the size and # of small business loans granted and by measuring access to capital based on the availability and amount of venture capital funds.

Taking into account these factors, the survey ranked Arizona 47th out of the 50 states, with each of the categories above ranked accordingly:

  • Taxes: 21 out of 50
  • Labor Market: 45 out of 50
  • Cost of Living: 21 out of 50
  • Quality of Life: 37 out of 50
  • Cost to Start a business: 48 out of 50
  • Startup Activity: 34 out of 50
  • Access to Capital: 43 out of 50

Some cities in Arizona such as Tolleson, Sedona, and Wickenburg are better to start a business in than others.  It’s worth noting, too, that Arizona is home to the oldest franchise in the NFL, the first barrel of U.S.-produced tequila, and the world’s first retirement community, Sun City! If margaritas and the Grand Canyon peak your interest (but not margaritas while climbing the Grand Canyon), then Arizona may be the right place for you and your new business!

Arizona Department of Revenue
1600 West Monroe Street
Phoenix, AZ, 85007
P  602-255-3381

Portal Link

Arizona Secretary of State
1700 W Washington St Fl 7
Phoenix, AZ, 85007
P  602-542-4285

Website Link

Small Business Advocacy
Arizona District Office
2828 North Central Ave. suite 800
Phoenix, AZ 85004
P  602-745-7200

Website Link

Business Filing Fees

LLC Filing Fee
$50.00
Incorporation Filing Fee
$60.00

Tax Information

Tax Type
Applicable
Rate / Fee
Due Date
Corporate Income Tax
Applicable:
Yes
Applicable:
4.90%
3/15
Sales Tax
Applicable:
Yes
Rate:
5.60%
Due Date:
20th of the month following the reporting period
Property Tax
Applicable:
Yes
Rate:
0.72%
Due Date:
April 1
Unemployment Tax
Applicable:
Yes
Rate:
2.00%
Due Date:
The last day of the month following the end of the quarter
Annual Report Required?*
*(C-Corp & LLC only)
Applicable:
Yes
Rate:
Corporations - $45 / LLC's - N/A
Corporations - Annually by anniversary of formation or registration. You can start filing 3 months prior. / LLC's - N/A
File Report

Reserving your name in Arizona:
Registration is not legally required but is an accepted business practice. Registration may be required to open business bank accounts and/or obtain additional business licenses. Sole proprietorships and partnerships may register names with the Secretary of State; LLCs and Corporations register with the Arizona Corporate Commission. Link to register as LLC or Corporation is below:
Reserve Your Name in Arizona

Additional Information

New Hire Reporting Required?
Yes
E-Verify Required?
Yes
Comprehensive State Guide

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