Summary
The fact that you may need to register with state agencies like Arizona Corporation Commission is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in Arizona, use this guide to:
- Explore the that triggers the need to register with the Arizona Corporation Commission, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the Arizona Corporation Commission.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the Arizona Corporation Commission?
Here's a breakdown of what Arizona considers "doing business":
- Physical Presence: Maintaining a physical location in Arizona, such as an office, store, warehouse, or factory.
- Employees in Arizona: Having employees who reside and work within the state.
- Regular Business Activity: Engaging in regular, ongoing business activities in the state, such as selling goods or services, or providing services within Arizona.
- Economic Benefit: Deriving income or economic gain from activities conducted in Arizona.
Specific Examples of Activities Deemed "Doing Business"
- Selling products to Arizona customers
- Providing services to Arizona customers
- Owning or leasing property in Arizona
- Having a sales representative or agent in Arizona
- Attending trade shows or conferences in Arizona to solicit business
Important Note: Even if a business does not have a physical presence in Arizona, it may still be considered as "doing business" in the state if it meets other criteria, such as regularly selling to Arizona customers.
Where do I register, and what else is required?
Arizona Corporation Commission
- A Certificate of Good Standing is required
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in Arizona. Here's a Arizona specific guide we put together.
What is the registration fee?
The fee charged by Arizona is $175.
How long does Arizona usually take to process?
Arizona usually takes approximately 1 - 2 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at Arizona's:
C-Corporation
- Filing Date: By the registration anniversary
- Filing Frequency: Annual
LLC
- Filing Date: Not required
- Filing Frequency: Not required
Non-Profit
- Filing Date: By the last day of the anniversary month
- Filing Frequency: Annual
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for Arizona. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
