Arizona has a highly manageable, affordable system for incorporating a business. The Arizona Corporation Commission (ACC) handles filings online, and the state agency notes the process can be done in as little as 15 minutes. Approvals often take just a few days.

But the incorporation process still requires precision: businesses must appoint a statutory agent with an in-state address, file articles of incorporation and a certificate of disclosure, and, in some counties, publish a notice of incorporation in a local newspaper. Getting these details right ensures your business stays compliant and in good standing from Day 1.

Below, we'll discuss how to incorporate in Arizona, including the costs and paperwork required.

What's in this article?

• What does it mean to incorporate a business in Arizona?
  
• What are the advantages of forming a corporation in Arizona?
  
• What are the steps to incorporate your business in Arizona?
  
• How much does it cost to incorporate in Arizona?
  
• How Stripe Atlas can help
  

What does it mean to incorporate a business in Arizona?

If you incorporate your business in Arizona, it becomes a distinct legal entity that is independent from you. Once it's incorporated, your business can own assets, sign contracts and pay taxes in its name. The most immediate benefit is protection for your personal assets from business debts and lawsuits, known as limited liability.

C corporations vs. S corporations

When you incorporate, you'll choose between two main tax structures:

• C corporation (C corp): The entity pays taxes at the corporate rate (4.9% in Arizona) and can distribute profits to shareholders as dividends.

• S corporation (S corp): This structure avoids corporate-level taxation by passing on income and losses to the owners' personal returns.

These corporation types are formed the same way and follow the same corporate rules. The differences are in how they handle taxes and who can own them.

Incorporation vs. LLC formation

Limited liability companies (LLCs) provide the same limited liability as corporations, but they operate with fewer formalities and default to pass-through taxation. This can make LLC formation in Arizona less complex and more flexible than incorporation. Corporations use a more structured system with directors, officers and shareholders. They can also issue stock, so they're better suited for growth or investment.

What are the advantages of forming a corporation in Arizona?

Arizona offers an environment that's supportive of new businesses: predictable laws, moderate taxes and a startup culture that's growing fast. If you incorporate in the state as a founder or business owner, you get the legal protection and credibility of a corporation without a heavy compliance burden.

Here are some benefits of setting up your business in the Grand Canyon State:

• Limited liability: Once it's incorporated, your business becomes its own legal entity. That separation protects your personal assets (e.g. your home, savings) from business debts and lawsuits. Shareholders in Arizona corporations can lose only what they've invested.

• Incentives for growth: Corporations are designed to scale. They can issue stock, which makes it easier to raise capital from investors or employees. Arizona supports growth of corporations with programmes such as the Angel Investment Tax Credit, which offers state tax breaks to investors who back early-stage Arizona startups, especially those in bioscience or rural areas.

• Flexible tax options: Arizona's corporate income tax rate is 4.9%, with a $50 minimum, and there's no separate franchise tax. C corps pay at that rate; S corps can elect pass-through taxation so profits are taxed only once on shareholders' personal returns. That flexibility lets founders match structure to scale and keep tax planning straightforward as corporations grow.

• A pro-business climate: The state's energy and real estate costs are below the national averages for those costs, and the ACC's online eCorp system makes it easier to file and maintain a corporation. It's an environment that rewards businesses that are ready to build for the long term.

What are the steps to incorporate your business in Arizona?

Arizona simplifies incorporation, with most steps completed online through the ACC's eCorp system. Once you've filed the required documents, published your notice (if applicable) and set up your internal records, your corporation is officially recognised under state law. Here are the steps to turn your idea into a legally recognised corporation:

Choose your entity type

To start, confirm whether a corporation or an LLC is the right structure for your business. Corporations suit founders who plan to raise money, issue stock or scale nationally, while LLCs offer simpler management and pass-through taxation by default. You can later elect S corp status with the IRS, if eligible.

Pick and verify your business name

Your corporation's name must be unique in Arizona and include a corporate suffix such as "Corporation," "Incorporated," "Company," or "Limited" (or an abbreviation such as "Inc." or "Co."). Use the ACC's online name search tool to confirm availability. You can reserve your name if you're not ready to file immediately.

Appoint a statutory agent

Every Arizona corporation must pick a statutory agent (the state's term for a registered agent) with a physical address in the state. This person or business receives legal and official documents on behalf of the corporation. You can serve as your own agent if you're based in Arizona, but many founders appoint a service for reliability and privacy. The agent must formally accept the appointment when you file.

File your articles of incorporation

These filings legally create your corporation. You can submit the required filings online through the ACC's eCorp portal or by mail. You'll need to include:

• Your business name and purpose

• The number and type of authorised shares

• Statutory agent information

• Principal business address

• Names and addresses of your initial directors and the incorporator

Along with the articles, you'll file a Certificate of Disclosure, which confirms whether any officers, directors or major shareholders have recent criminal, bankruptcy or revocation history. An incorporator or officer must sign this form.

Publish your incorporation notice

If your statutory agent's address is outside Maricopa County or Pima County, Arizona requires you to publish a notice of incorporation in a local newspaper for three consecutive issues. If your address is in one of those counties, the ACC automatically handles publication, so there's no action needed on your side.

Hold your first organisational meeting

Once your filing is approved, hold your initial board meeting to adopt corporate bylaws, elect officers and issue shares. Keep meeting minutes and bylaws on file. They're not submitted to the state, but they're necessary for maintaining your liability protection.

Register for taxes

If your corporation sells goods or taxable services, apply for Arizona's transaction privilege tax license through AZTaxes.gov. If you plan to hire employees, register for state withholding and unemployment insurance accounts with the Department of Revenue and the Department of Economic Security.

File your annual report

Each year on the anniversary of incorporation, you must file an annual report. You'll update basic details such as officer and director information. Missing deadlines leads to monthly penalties and eventually administrative dissolution, so it's important to track due dates.

Maintain good standing

Keep your corporate records organised, including bylaws, the stock ledger and meeting minutes. Update the ACC when major changes occur, whether you move offices, change directors or issue new shares. To keep your corporation in good standing, stay current with filings and records.

How much does it cost to incorporate in Arizona?

Starting a corporation in Arizona is more affordable than doing so in many other states, and the costs are clear from the start. The state has no franchise tax, and its corporate income tax rate is 4.9%, one of the lowest in the country. Arizona maintains a clear schedule of required filing and corporation fees so there won't be any surprises.

Here are the costs associated with incorporation in Arizona:

• Filing articles of incorporation: $60, paid to the ACC

• Business name reservation (optional, valid for 120 days): $10

• Accelerated processing (optional): $100 for next-day service, $200 for same-day service, $400 for 2-hour service

• Registered agent service: Free if you serve as your own agent, or roughly $100–$300 per year for a professional service

• Publication requirement: Costs vary; required only if your statutory agent's address is outside Maricopa County or Pima County

• Annual report filing fee: $45

How Stripe Atlas can help

Stripe Atlas sets up your company's legal foundations so you can fundraise, open a bank account and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You'll choose your company structure, instantly confirm whether your company name is available and add up to four co-founders. You'll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers and then e-sign all your documents. Any co-founders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your Employer Identification Number (EIN). Founders with a US Social Security number, address and mobile phone number are eligible for IRS expedited processing, whilst others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g. copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal Income taxes. Atlas will file it for you – whether you are a US or non-US founder – with USPS Certified Mail and tracking. You'll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world's leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance and operations from industry leaders like AWS, Carta and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you'll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payment volume.

Learn more about how Atlas can help you set up your new business quickly and easily or get started today.