Arizona Corporation Commission Entity Statistics
The average number of Arizona LLCs formed during the last three fiscal years of the Arizona Corporation Commission is 45,882. The average number of Arizona for profit corporations formed in the last three fiscal years of the ACC is 8,419.
The table below shows entity formations for the Arizona Corporation Commission's fiscal years ending June 30 from 1982 to 2010. For current year to date and historical numbers, see the Arizona Corporation Commission statistics.
Over the last three ACC fiscal years, people formed 137,646 Arizona LLCs and 25,257 Arizona for profit corporations. That is 5.5 times more LLCs than corporations. During the most recent fiscal year of the ACC ending June 30, 2010, people formed Arizona LLCs 6.5 times more often than they formed Arizona corporations. Most people forming Arizona corporations do not know that the corporation is an obsolete entity that should be used only in a few select circumstances.
|
Fiscal Year |
New Corporations |
New LLCs |
|
1992-1993 |
1,336 |
|
|
1993-1994 |
* | * |
|
1994-1995 |
* | * |
|
1995-1996 |
13,100 |
5,630 |
|
1996-1997 |
13,260 |
6,644 |
|
1997-1998 |
13,190 |
8,733 |
|
1998-1999 |
13,173 |
10,643 |
|
1999-2000 |
13,170 |
12,862 |
|
2000-2001 |
13,204 |
14,785 |
|
2001-2002 |
12,872 |
17,069 |
|
2002-2003 |
13,571 |
23,954 |
|
2003-2004 |
12,722 |
30,793 |
|
2004-2005 |
12,246 |
40,819 |
|
2005-2006 |
14,282 |
53,277 |
|
2006-2007 |
11,081 |
49,966 |
|
2007-2008 |
9,981 |
48,455 |
| 2008-2009 |
8,199 |
43,526 |
| 2009-2010 |
7,076 |
45,665 |
|
Total |
129,984 |
393,778 |
*The ACC's website does not display accurate stats for its fiscal years 1993-1994 and 1995-1995.
Corporate Revocations
Arizona law requires every Arizona corporation (for profit and nonprofit) to file an annual report. Arizona law provides that an Arizona corporation that does not file its annual report before the deadline will have its charter revoked, which means the ACC will kill the corporation and it will cease to exist.
As of October 1, 2009, the Arizona Corporation Commission ceased mailing annual reports to Arizona corporations. See ACC No Longer Mails Annual Reports. I am predicting that the number of corporations that are terminated by the ACC for failure to file their annual reports will sky rocket in the next few years because most corporations do not have a method to remind the powers to be to file the annual report. In the good old days, it was receiving a hard copy of the annual report in the mail that served to remind the people running a corporation that it was time to file the annual report.
For the 2010 fiscal year, the percentage of corporations that had their charters revoked was the same as the prior fiscal year.
ACC Stats on the Number of Corporations Revoked by Year
|
Fiscal Year |
Total Corps |
Revocations |
Percentage |
|
2008 |
168,328 |
22,101 |
13% |
|
2009 |
174,952 |
15,817 |
9% |
|
2010 |
180,587 |
16,158 |
9% |
Phoenix Attorney Richard Keyt
Richard Keyt is an Arizona LLC attorney who practices business, transactions, contracts, Arizona real estate law, estate planning and internet law. Rick has formed 2,400+ Arizona limited liability companies in the last few years. Rick is a Phoenix attorney licensed to practice law in Arizona. He has provided legal services to businesses and people in Arizona since 1980. Rick can be reached by telephone at 602-906-4953, ext. 3 email at rickkeyt@keytlaw.com and fax at 602-297-6890. Rick's Arizona law, internet, e-commerce and domain name law web site is KEYTLaw, located at www.keytlaw.com.
