At Harrison Law, we've worked with entrepreneurs and international clients from all over the world – and more and more, they're choosing to build their businesses right here in Arizona.
From its favorable business climate to its strategic location and growing innovation ecosystem, Arizona is quickly becoming one of the best places in the U.S. to start, expand, or relocate a business.
Here's why, and what you need to know to get started:
A Pro-Business Climate That Encourages Growth
Arizona has made a name for itself by creating an environment that supports innovation and investment. The state has low regulatory burdens, business-friendly tax policies, and a strong infrastructure – all of which help entrepreneurs move faster.
We've seen firsthand how attractive Arizona is to tech companies, manufacturing firms, and startups. With global players like TSMC and LG establishing facilities here, a vibrant ecosystem is developing. This benefits smaller companies as well, as many of our clients either supply or support those larger operations.
And of course, the lifestyle doesn't hurt. Our weather, low cost of living (compared to coastal cities), and access to nature make Arizona a great place to live as well as work.
Choosing the Right Legal Structure
One of the first conversations we have with new business owners is about structure. It's critical to get this right at the beginning.
In most circumstances, we recommend forming a Limited Liability Company (LLC) to start. LLCs are flexible, relatively simple to form, and offer excellent legal protection. Whether you're a solo founder or starting something with partners, an LLC gives you room to grow without the securities and regulations other corporate structures require.
As your business matures (especially if you begin raising outside capital or seek to go public), we can help you transition into a more complex structure like a corporation. But for many businesses, an LLC is a strong, scalable foundation.
International Companies Are Also Planting Roots Here
Many of our international clients come to Arizona either to invest in local projects or to launch U.S.-based operations. We regularly assist with the formation of Arizona subsidiaries, registration of foreign entities, and compliance with U.S. laws.
While some companies incorporate in Delaware or other states, operating in Arizona typically means registering with the Arizona Corporation Commission and complying with local tax and licensing requirements.
We also make sure our international clients understand the local nuances that may differ from federal or home-country regulations. Too often, we see foreign-based companies try to rely on out-of-state counsel unfamiliar with Arizona law. And that can lead to costly errors.
Compliance: Simple, But Not Optional
Arizona offers a smoother path than many other states when it comes to setup and compliance. But that doesn't mean you can ignore it. Businesses still need to:
- Register and receive approval from the Arizona Corporation Commission
- File for a Transaction Privilege Tax (TPT) license if applicable
- Obtain local city or county business licenses
- Secure an EIN (Employer Identification Number)
- File as a foreign entity, if incorporated outside Arizona
We help clients navigate this process efficiently, so they can focus on building their business; not fighting bureaucracy.
Common Pitfalls for Startups
One of the biggest mistakes we see early-stage businesses make is committing to a long-term commercial lease too soon.
Commercial leases in Arizona often last 5 to 10 years and may include personal guarantees. If your business pivots or doesn't scale as expected, you could be liable for hundreds of thousands of dollars in rent.
We always recommend clients speak with us before signing any lease, contract, or financial agreement. There are ways to negotiate more favorable terms or delay that commitment until the business is more stable.
From Formation to Growth: We're With You
Starting a business is exciting, but it's also a legal process that deserves careful planning. At Harrison Law, we guide clients through every phase, from formation to expansion. We assist with:
- Business formation and structuring
- Contract drafting and negotiation
- Commercial lease reviews
- International compliance
- Tax registrations and licensing
- Ongoing legal counsel
We pride ourselves on being proactive partners to the companies we serve. Whether you're a local entrepreneur or an international investor, we'll help you make Arizona work for your business both today and into the future.
If you're thinking about starting or expanding a business in Arizona, Matthew would be happy to help.
Call us Harrison Law at (480) 320-2310 or fill in their online contact form to schedule a consultation
For further insights from Matthew on business law in Arizona, listen to his full IR Global: Expertise Unlocked podcast episode.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
