Was the pandemic profitable for Arizona? Real estate trends suggest so. According to Redfin, Phoenix enjoyed a net inflow of over 82,000 residents in 2020, the largest national metro growth for the year. And it makes sense. Year-round sunshine, lower taxes, and fewer regulations make the state an attractive option for start-ups. It makes sense to setup your start-up in Arizona! Plus, it’s one of the few places where you can still find a lovely home for mid-six figures.
Arizona: A Start-up Overview
For decades, area politicians have groomed the state’s regulatory landscape to attract business — and they’ve succeeded. As a result, Arizona now enjoys the fourth-best GDP growth rate of the United States. Plus, it has a relatively low unemployment rate, and infrastructure innovation is a top priority.
Six Good Reasons to Setup Your Start-up in Arizona
We’ve established that Arizona fosters a business-friendly environment. But why is the state, specifically Phoenix, fertile ground for start-ups?
#6: Phoenix Has an Established and Thriving Tech Sector
In the public’s general consciousness, California and Washington State — with their Silicon Valleys and Redmonds — is where the country’s “digital innovation” happens. But insiders know that Phoenix, the 5th most populous city in the country, enjoys a thriving tech scene.
#5: Lower Cost of Living
In Arizona, it’s still possible to get a super house for six figures — unlike California, where a million bucks will score you a 600-square-foot studio apartment on Skid Row or a dilapidated shack.
#4: Access to Talent
Phoenix is a tech hub, and there’s tons of talent milling about. Moreover, it’s easy to attract top recruits to the region because of the living and lifestyle perks. After all, $150,000 goes a whole lot further in Arizona than it does in California, New York, or Washington.
#3: Supportive Infrastructure and Logistics
For years, Arizona lawmakers have landscaped an exceptionally business-friendly economy. As a result, taxes are lower, and regulations are looser. Many big players maintain Arizona offices, and the city has met their infrastructure demands.
The state’s roads and public transportation are top-notch, plus the area airports are high-volume hubs. So quickly finding a flight out of or into Phoenix is a snap.
#2: Supportive Research Initiatives
In addition to a bustling tech scene, many research outfits have set up shop in Arizona over the past decade. Frequently, businesses will collaborate with research entities, which pushes innovation.
#1: Better Work-Life Balance
Hustle culture works for many people, but not everybody — and it’s not the only path to success. With that in mind, many people find the pace of life more manageable in Arizona. Please don’t read that wrong: Arizonians work incredibly hard, but they also understand the need for a work-life balance — perhaps a little more so than in traditional tech corridors.
Consult with an Arizona Start-up Lawyer
The Kelly Law Firm has worked with countless Arizona start-ups on everything from business formation to litigation. If you have a legal question, need, or concern, let’s talk.
