The trend of entrepreneurs choosing Arizona as the prime location to set up their enterprises continues. Arizona’s business-friendly environment, affordable living, and operating costs are credited for the trend.
The Arizona Corporation Commission also credits “streamline regulations that make it easier to start and run a business.”
“We are both pleased and excited to be recognized as one of the foremost states to start and grow a business,” said Tanya Gibson, Corporations Division Director. “The Commission has worked diligently to make conducting business in Arizona streamlined and affordable, while also providing entrepreneurs with the resources they need to flourish.”
In 2024, the Corporations Division processed 212,547 filings with an 85% online adoption rate. Also in 2024, 10,504 new corporations were formed, and 118,015 new limited liability companies (LLCs) were formed.
Several newly released studies are showcasing the various advantages that the Arizona business environment has to offer entrepreneurs. Sources of these studies include SimplifyLLC, a technology company that focuses on network and software development; the USA Today Homefront research team; and Wallethub, a personal finance company.
Arizona ranks as the 14th best state for entrepreneurs in 2025 – according to a new study from SimplifyLLC. The Grand Canyon State jumped 11 spots this year compared to its ranking in this study in 2024. SimplifyLLC credits these key factors for Arizona’s improved ranking:
- New business growth: No. 8, up from No. 38 last year.
- Job creation rate: No. 4, same as last year.
- Consumer spending: No. 26, up from No. 43 last year.
Additionally, the USA TODAY study ranks Arizona as the third most affordable state to live and operate a business in, with the typical cost of living at $47,805 per resident. For business owners, Arizona has some of the cheapest filing fees at $50 for a one-time LLC filing fee, and no annual LLC fee.
The Wallethub study ranks Arizona as the 9th best state in the country to start a new business. WalletHub compared 25 key indicators of startup success across the 50 states, including aspects such as access to financing, skilled workforce and affordability. Arizona provides ideal conditions for entrepreneurs to not only launch a new business, but to help those new enterprises succeed and thrive.
“The one stop business portal and technological improvements made by the Arizona Corporation Commission are very helpful to the small business community and entrepreneurs who are seeking to start a business in our state,” states Corporation Commissioner Lea Marquez Peterson. “As a former Chamber of Commerce President, I know how confusing it can be for an entrepreneur as they work to file the necessary paperwork to launch their new venture. The online filing portal is an excellent tool that will lessen the administrative burden felt by businesses and allow them to focus on their future business success.”