50 State Series: How to move your LLC or corporation out of Arizona and keep your EIN

Attorney and CPA Chad D. Cummings highlights Arizona’s tax reality in this presentation. While the state’s 2.5 percent flat individual income tax is a significant improvement over its previous graduated structure, it is still a tax. Florida and Texas impose none. For a pass-through business owner earning $500,000 annually, that 2.5 percent represents $12,500 per year in state income tax that simply does not exist in those two states. Over five or ten years, the difference becomes substantial. Arizona also maintains a 4.9 percent corporate income tax and one of the higher combined state and local sales tax rates in the country. This presentation explains why Arizona, despite its progress, still falls short of the best options available and how redomestication allows business owners to move their company’s state of domicile to Florida or Texas without creating a new entity, without dissolution, and on a completely tax-free basis while keeping the same FEIN, contracts, credit history, and bank accounts. If you own a business in Arizona, this could be the move that puts meaningful money back into your company every year. Learn more: https://www.cummings.law/redomestication/