--- title: "Arizona Entity Running Costs and Filings" description: "Arizona running costs for Teamed's entity: corporate tax, minimum franchise tax, and formation fees explained simply." canonical: https://www.teamed.global/country-hiring-guides/united-states/arizona/entity-running-costs-and-filings --- ![Arizona business district.](/cluster-assets/country-hiring-guides/united-states/arizona/entity-running-costs-and-filings/images/hero.webp) # How much does it costto run a company in Arizona. Teamed shows the real cost of running an Arizona entity, corporate tax, minimum franchise tax, and formation fees, before you commit capital. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Arizona guide At a glance ## Arizona's core running costs Arizona taxes corporate profit at a flat 4.9%, charges a minimum franchise tax of $50 regardless of income, and asks for a $50 fee to register the entity with the Arizona Corporation Commission. Corporate income tax4.9% Minimum franchise tax$50 Franchise tax basisflat 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 franchise tax that applies regardless of profit. Franchise tax ## The minimum tax you owe even without profit Arizona applies a minimum franchise 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 franchise tax 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 salaries and how long you intend to stay, not on a fixed headcount. GEMO ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Teamed's Global Entity and Employment Operations service, which we call GEMO, builds the entity for you when you are ready to move off EOR, across 100+ countries. We handle formation, banking, and the handover, so the entity you receive is fully yours, not a shell you have to unwind later. In Arizona, that means we register the entity with the Arizona Corporation Commission, get the flat 4.9% corporate income tax and the $50 minimum franchise tax set up correctly with the state, and hand you a running entity rather than a stack of paperwork. 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 salaries and employer costs rather than on a headcount rule of thumb. Talk to a member of the team Model the crossover for the United States Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it. In Arizona, that means we register the entity with the Arizona Corporation Commission, get the flat 4.9% corporate income tax and the $50 minimum franchise tax set up correctly with the state, and hand you a running entity rather than a stack of paperwork. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about Arizona 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 franchise tax? Yes, Arizona applies a minimum franchise 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 franchise 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 salaries 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. ## More on entities in Arizona - [Hiring in Arizona, overview](/country-hiring-guides/united-states/arizona)parent - [Arizona setting up](/country-hiring-guides/united-states/arizona/entity-setup)sibling - [Arizona tax presence](/country-hiring-guides/united-states/arizona/permanent-establishment-risk)sibling - [Arizona entity or eor](/country-hiring-guides/united-states/arizona/eor-vs-entity)sibling - [Arizona moving from an eor](/country-hiring-guides/united-states/arizona/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Arizona](https://www.teamed.global/contact?from=entity-running-costs-and-filings)CTA