by Richard Keyt, an Arizona LLC attorney
Arizona Corporation Commission Entity Statistics as of Its Fiscal Year Ending June 30, 2016
During the ACC fiscal year that ended June 30, 2016, people formed 55,503 Arizona LLCs and 5,728 Arizona for profit corporations. People are forming Arizona LLCs ten times more often than 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.
The table below shows entity formations for the Arizona Corporation Commission’s fiscal years ending June 30 from 1982 to 2016. For current year to date and historical numbers, see the Arizona Corporation Commission statistics.
|Fiscal Year||New Corporations||New LLCs|
*The ACC’s website does not display accurate stats for its fiscal years 1993-1994 and 1995-1995.
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.
|Fiscal Year||Total Corps||Revocations||Percentage|