How to Form a Company in Arizona
Introduction
Ready to form a company in Arizona? This guide will walk you through the process, from choosing a business structure to filing for an EIN (Employer Identification Number). We’ll also cover some important details about Arizona business taxes. So if you want to learn how to form a company in Arizona, read on!
If you want to learn how to form a company in Arizona, you’ll need to know some of the basic requirements and how the process works.
Registering with the state and federal government is the first step in forming a company in Arizona. After that, you’ll need to create an official name for your company and form articles of organization. The process is fairly straightforward but will require some paperwork, so it’s important to follow all of the requirements carefully.
Choosing a business structure
Choosing your business structure is an important decision that can have long-term effects on your company.
There are several different types of business structures available to you, including:
- Sole proprietorship (1 owner)
- Partnership (multiple owners)
- Corporation (separate legal entity)
- Limited liability corporation (LLC)
Creating an official name
First things first, you’ll need to choose an official name for your company. There are a few factors to consider when choosing a name. The name should be easy to pronounce, spell, and remember—you don’t want people spending time trying to figure out what your company does or how they can contact you. In Arizona, the name of your business must begin with one of three approved words: “Limited” (Ltd.), “Corporation” (Corp.), and “Incorporated” (Inc.).
The name should not be too similar to an existing business; it may cause confusion among customers about which company provides services in Arizona. Additionally, names that sound similar but have different meanings can lead consumers astray when trying to find the service they need from one business over another—for example, Pamela’s Bakery vs. Pamela’s Bed & Breakfast Inn would cause some confusion as both businesses provide lodging services but are operated by different individuals under separate entities within their respective industries.
Formulating articles of organization
Articles of organization are a public record, so you should be careful not to include any sensitive information in your articles. The articles must include:
- The business name, address and purpose
- The incorporator’s signature (or signature of someone authorized to act on behalf of the corporation)
- Notarization by a notary public or other official authorized to administer oaths
Getting an EIN (Employer Identification Number)
What is an EIN?
An Employer Identification Number (EIN) is a tax identification number used by businesses in the United States. It’s also sometimes referred to as a federal tax ID or FEIN, or Federal Employer Identification Number. You’ll be given this number when you form your company in Arizona: it’s required for both corporations and LLCs.
What does my EIN do? Your EIN will help you open a bank account for your business, file taxes as an individual, and make sure everything is done legally under U.S.-imposed laws. What if I already have an EIN from another state? If you have already filed taxes in another state or country with your own business entity, then you probably have an existing EIN that can be transferred over if needed! Otherwise—and this applies mostly to new companies—you’ll need to apply online at www-irs-gov/EmployerIdentificationNumber (or just go straight there by clicking here).
Understanding Arizona business taxes
- When you form a company in Arizona, you must pay taxes to the state. You’ll have to pay corporate income tax, which is 5.5% of your taxable income. The gross receipts tax applies to businesses that maintain property or employees in Arizona and earn annual gross receipts exceeding $50,000. The rate is 4.9%.
- The sales tax rate in Arizona is 5.6%. It applies to goods sold through retailers or wholesalers (but not services).
- If you’re an employer who pays unemployment insurance tax on behalf of your employees, then this applies: The unemployment insurance tax rate is 3%, and it’s levied on wages up to $7,000 per employee per calendar quarter—the maximum amount subject to social security coverage by the federal government for each employer-employee relationship within a given state during any calendar year (this can differ from calendar year). Employers are required by law not only provide their staff members with health care benefits but also make sure that everyone has access if necessary throughout their employment period!
Additionally: If your business owns real estate within Arizona, there may be special taxes applicable depending upon whether or not it’s used as an office space rather than just residential housing space alone – these include property taxes
You can form a company in Arizona fairly easily if you pay close attention to the details.
When you’re starting a new business, one of the first things you need to do is choose the right structure for your company. This includes choosing a name and filing paperwork with the government.
It’s important to know that there are several types of companies in Arizona, including sole proprietorships (which are not legal entities), partnerships, corporations and limited liability companies (LLCs). Each type has different rules for taxation and liability protection.
When forming an LLC in Arizona, it’s important to keep these considerations in mind:
- The name must contain “limited liability company” or “LLC” within it somewhere. It can’t just be something like “My Company,” which would imply a partnership instead of an LLC.
- A registered agent is always required when incorporating as an LLC; this person will receive all official mail from state agencies related to your business activities so make sure they live close by! You may also want someone with experience dealing with legal matters if possible so they can help out if anything goes wrong down the line (like getting sued).
Conclusion
In conclusion, forming a company in Arizona is something that can be done fairly easily if you pay close attention to the details. You’ll need to know some of the basic requirements and how the process works, but once you do that then it’s just a matter of choosing a business structure, creating an official name for your company, formulating articles of organization for submission with our state’s Secretary of State office (and paying $50 fee), obtaining an EIN from IRS or SSA if applicable (we recommend doing this first so they don’t have any questions while filing articles), understanding Arizona’s tax laws before filing return.
