Arizona Formation Guide

Form a 📊 S-Corp in 🌵 Arizona

Step-by-step guide to forming a S-Corp in Arizona. Filing fee ($60), requirements, timeline, taxes, and what international founders need to know.

Start Formation — $60 → Get AI Recommendation

$60

Filing Fee

$0/yr

Annual Cost

Min Processing Days

Low

Privacy Level

Why Arizona for a S-Corp?

Low-Tax Sun Belt Business Hub

✓ Arizona Advantages

Lowest flat income tax (2.5%)
No annual report fee
Low filing fee ($50)
Rapidly growing Phoenix tech market

✗ Considerations

Low privacy protection
Less startup recognition
Hot climate limits some talent
Less established legal ecosystem

How to Form a S-Corp in Arizona

Step-by-step process for international founders.

Form a C-Corp or LLC first

File Form 2553 (S-Corp election) with IRS

Meet all eligibility requirements

Set up payroll for owner salary

File annual Form 1120-S

File annual report / pay annual fees in Arizona

Annual fee: $0. Due: None

S-Corp in Arizona: Costs Breakdown

Cost Item	Amount	Notes
State filing fee	$60	One-time, paid to Arizona SOS
Registered agent (Year 1)	$50–$150/yr	Required in Arizona
Annual report / renewal	$0/yr	Due: None
EIN (Federal Tax ID)	Free	Apply via IRS Form SS-4
Operating Agreement / Bylaws	$0–$500	DIY or attorney-drafted
Business bank account	$0	Mercury or Relay recommended
Total Year 1 (estimated)	$160–$710	Varies with registered agent choice

Tax Treatment: S-Corp in Arizona

Federal Tax

Pass-through (but owners pay salary + save on SE tax)

IRS Form: Form 1120-S + Schedule K-1

State Tax in Arizona

Yes (2.5% flat 2023)

Franchise tax: None

Frequently Asked Questions

Can I form a S-Corp in Arizona as a non-US resident?

Yes. Arizona allows non-US residents to form a S-Corp entirely remotely. You need a registered agent with a Arizona address, and you'll apply for an EIN from the IRS using Form SS-4.

Do I need to live in Arizona to form a S-Corp there?

No. You can form a Arizona S-Corp from anywhere in the world. However, you must maintain a registered agent with a physical Arizona address.

How long does S-Corp formation take in Arizona?

Standard processing: 2–5 days. Expedited processing is available for an additional fee through the Arizona Secretary of State.

What bank account should I open for my Arizona S-Corp?

Mercury and Relay are the top choices for international founders. Both open accounts fully online, require no US visit, and work well with Arizona entities.