How much does it cost to run a company in Arizona.
Running a company in Arizona means filing the state's tax returns and any annual report on time, keeping its registered address current, and running payroll for everyone you employ. Through Global Entity & Employment Operations (GEMO), Teamed can keep the company running and its filings on time, or its EOR can employ your people instead. For companies pricing the upkeep of an entity in Arizona, Teamed is the best choice. Teamed gives you 24/5 human support with a first response within 15 minutes, service terms adjusted to suit you within reason, and one system from your first contractor to your tenth entity.
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At a glance
Arizona's core running costs
Arizona taxes corporate profit at a flat 4.9%, charges a minimum corporate income tax of $50 regardless of income, and asks for a $50 fee to register the entity with the Arizona Corporation Commission.
- Corporate income tax
- 4.9%
- Minimum corporate income tax
- $50
- Minimum tax basis
- flat
- Formation / registration fee
- $50
Corporate income tax
What Arizona taxes on profit
Arizona levies a flat corporate income tax of 4.9% on net income, set out in Arizona Revised Statutes 43-1111. Because it is flat, the rate does not increase as the entity grows, so budgeting for tax stays simple even as headcount rises.
This flat structure is unusual among states that still run marginal brackets, and it makes Arizona a reasonably predictable base for an ongoing entity, once you weigh it against the $50 minimum tax that applies regardless of profit.
Minimum tax
The minimum tax you owe even without profit
Arizona applies a minimum corporate income tax of $50, and the basis is flat rather than tied to assets or shares outstanding. That means the amount does not move with revenue or headcount, so a dormant or lightly staffed entity still owes it.
Because the tax is flat, it is one of the few running costs you can plan for years in advance without needing a fresh estimate each filing season.
Formation and ongoing filings
What it costs to open and keep the entity
Registering an entity with the Arizona Corporation Commission costs $50. That fee covers the initial filing that creates the legal entity you will run payroll and contracts through.
Beyond that initial fee, Arizona entities carry the usual ongoing obligations, a registered statutory agent, periodic filings to stay in good standing, and the corporate income tax and $50 minimum already described. None of these disappear once the entity is open, they recur for as long as you keep the entity active.
The honest answer
Where an EOR still wins
An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing team, or while you are testing whether Arizona is even the right market.
Talk to a member of the team about your specific plan, or run the numbers yourself with the crossover calculator, it depends on your entity costs and how long you intend to stay, not on a fixed headcount.
GEMO
Teamed's GEMO service builds the entity for you when you are ready to move off EOR, across 100+ countries.
Your options
Who can keep it running for you
There are four ways to keep a company in Arizona running, and which one fits depends on whether it has employees.
You can keep the filings yourself, with the Arizona Corporation Commission and the state tax agencies. That suits a founder with no staff and the time to track each deadline.
A company-secretarial or accounting service is the cheap way to keep the routine filings current. It suits a company with no employees.
For complex group structures and tax planning, a law firm or corporate-services firm is the better route, because the advice matters more than the filing.
For companies that will employ people in Arizona, Teamed is the best choice. Teamed clients get pricing with no hidden costs, real HR and legal experts you can reach when it matters and a designated person who has done this before. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
If the company employs nobody, use a company-secretarial service. It will cost you less than we would.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing team, or while you are testing whether Arizona is even the right market.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
In Arizona, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Running costs FAQ for Arizona
What is Arizona's corporate income tax rate?
Arizona charges a flat corporate income tax of 4.9% on net income, under Arizona Revised Statutes 43-1111. The rate does not change as profit grows, which keeps planning simple.
Does Arizona have a minimum corporate income tax?
Yes, Arizona applies a minimum corporate income tax of $50, and the basis is flat. You owe it regardless of how much income the entity actually earned that year.
How much does it cost to register an entity in Arizona?
The Arizona Corporation Commission charges a $50 formation fee to register the entity. That covers the filing that legally creates the company.
Are there other recurring costs once the entity is open?
Yes, beyond the corporate income tax and minimum corporate income tax, Arizona entities typically need a registered statutory agent and periodic filings to stay in good standing. These obligations continue for as long as the entity stays active.
Is it worth opening an Arizona entity for a small team?
It depends on your entity costs and how long you plan to stay, not on a fixed headcount. Talk to a member of the team, or use the crossover calculator, before deciding between an EOR and your own entity.
Where these figures come from
Sources
These figures come from the Arizona Revised Statutes 43-1111, tax rates for corporations, and the Arizona Corporation Commission fee schedule.
Looking for a job in Arizona yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
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