How to start an Arizona corporation

It might seem like a lot at first, but once you understand the steps, it’s very doable. This guide will walk you through everything you need to know to start your Arizona corporation.

How to start a corporation in Arizona

Incorporating means registering your business as a corporation so the law sees it as its own entity, separate from you. Each state has its own rules for how to do this, so the process can seem confusing. Let’s go through each step: 

1. Choose a name for your Arizona corporation

Your corporation’s name should be unique and make a statement about your business. Make sure it complies with the following Arizona requirements:

• Your company's name must include "Association," "Incorporated," "Corporation," "Company," "Limited," or an abbreviation of one of these terms.
• The words "Bank," "Banc," or "Bancorp" cannot be used without approval from the Department of Banking.
• Your corporation's name must be distinguishable from all other business entity names already on file in Arizona.

Need help coming up with a business name for your corporation? Try the Rocket Copilot™ AI Business Name Generator, a free tool to help you brainstorm business names and get started registering your corporation.

2. Decide between an Arizona S-Corp and C-Corp tax designation

There are similarities between an Arizona S-Corp and a C-Corp regarding personal liability, management, structure, and compliance. The differences, however, come down to the following:

• Ownership Rules: a C-Corp can have unlimited shareholders and unlimited stock classes. An S-Corp is limited to a maximum number of shareholders, usually 100, and only one stock class.
• Taxes: a C-Corp is taxed separately. It pays taxes at the corporate level, and shareholders may also pay taxes on dividends they receive. S-Corps are "pass-through" tax entities. They pay no taxes at the corporate level. Taxes are paid individually by the owners instead.
• Documents: an S-Corp must file IRS Form 2553 to elect S-Corp status.

3. Appoint directors and shareholders for your Arizona corporation

Each state has its own personnel requirements for incorporating. In Arizona, corporations must have at least one director. There are no age requirements for incorporators or directors in Arizona, and there are no residency requirements.

State the number of your corporation's directors in either your Bylaws or your business's Articles of Incorporation. 

4. Choose a Registered Agent

A Registered Agent is the person or business responsible for receiving tax, legal, and government documents during regular business hours. It's important that every business has one. You can either serve as your own registered agent (if you have an Arizona address) or choose one to do that service for you (if you are not located in Arizona or would like an extra layer of privacy).

5. File your Articles of Incorporation with the state of Arizona

Once you have a business name and registered agent, you can register your business as an Arizona corporation with the state by filing your Articles of Incorporation. This document may be referred to in other states as "Certificate of Organization," "Certificate of Filing," or "Articles of Organization."

Arizona law also requires that you publish notice of your corporation's formation in a newspaper serving the corporation's place of business for three consecutive days. If the newspaper does not publish daily, you may have to publish longer. Your corporation must also file a Certificate of Disclosure with its Articles of Incorporation.

6. Get an Employer Identification Number (EIN)

Before opening your doors for business, apply to the IRS for an employer identification number, or EIN. All corporations with employees in Arizona must have an EIN. An EIN is similar to your Social Security number, but it's for businesses. You'll also need an EIN to open your corporate bank account.

Congratulations! After you have completed all these steps, you have formed your Arizona corporation.

What to do after incorporating in Arizona

Arizona requires that your corporation create and keep corporate records. These include:

• Bylaws.
• Corporate Minutes.
• The most recent annual report.
• Articles of Incorporation.
• Correspondence with shareholders.
• A list of the names and addresses of the directors and officers.

It's recommended that you keep these documents even when they're not required by the state. They help protect the legality of your corporate status. We have more detailed information about Arizona's requirements for Bylaws and Corporate Meeting Minutes.

Still have questions? Learn more about how to start your own business with Rocket Lawyer and get started today!
 

Key takeaways Starting a corporation in Arizona means following state rules, like choosing a unique name, filling out paperwork, and paying fees to make it official. One important choice is deciding how your corporation will be taxed in Arizona, either as an S-Corp or a C-Corp. This affects how the business and owners pay taxes, and the differences between the two change from state to state. After forming the corporation, you must also keep records – like Bylaws and Meeting Notes – to stay in good standing with the state and prove your business is real and operating correctly.

Additional resources

Learning how to enforce a contract is just one step. Explore these additional topics to learn more and take the next steps.

• What is a corporation?
• What is an S-corporation?
• How are corporations taxed?
• How to start a corporation
• How to register a corporation by state