NV vs. Arizona

Nevada vs. Arizona Incorporation Comparison

The big advantage of incorporating in Nevada over Arizona is the lack of state income tax in Nevada. Arizona has a 6.968% state corporate income tax rate and personal income tax as high as 4.54%. While both Nevada and Arizona have no gift tax, unitary tax or estate tax, series LLC corporations are allowed in Nevada but not in Arizona. For current info on Arizona’s business and taxation laws see their website. Below we’ve compiled some information on the benefits of incorporating in Nevada vs. Arizona:

 
 
Nevada
Arizona

State Corporate Income Tax
None
6.97%

Tax Foundation’s, Corporate Tax Ranking Index
1
35

Personal Income Tax
None
2.59%-4.54%

Tax Foundations, Personal Income Tax Ranking Index
1
29

Franchise Tax

Tax on corp shares

Gift Tax

Unitary Tax

Estate Tax

Statutory Indemnification of Officers, Directors & Employees
Yes

Charging Order Protection for Corporation
Yes

Charging Order is Creditor’s Sole Remedy for LLC or Corporation
Yes
Yes

Highest Standard of Corporate Veil Protection
Yes

Series LLC Allowed
Yes

Business Court*
Yes