Comparable baseline
Arizona at a glance
| Population | 7,623,818 | July 1, 2025; +6.1% since 2020 |
|---|---|---|
| Business applications | 14,085 | July 2026, seasonally adjusted |
| Trailing-12-month applications | 154,366 | 2,024.8 per 100,000 residents |
| High-propensity applications | 3,306 | 23.5% of July applications |
| Projected employer formations | 734 | Census four-quarter projection for July's cohort |
| Small businesses | 706,640 | SBA 2025 profile; underlying employer and nonemployer data are from 2022 |
| Small-business employment | 1,186,389 | 42.6% of private employment in 2022 |
| Employer establishments | 162,845 | 2023 County Business Patterns |
Application rankings cover the 50 states and use unrounded figures. Applications are qualifying EIN filings, not confirmed business openings. Measurement years differ because federal datasets are released on different schedules.
Arizona recorded 14,085 business applications in July 2026, 30.1% more than a year earlier. The wider trend confirms that the increase was not limited to one month: the 154,366 applications filed from August 2025 through July 2026 were 24.8% above the preceding 12 months.
The state’s raw volume and population-adjusted rate tell nearly the same story. Arizona ranked 12th among states by July count and 12th at 184.8 applications per 100,000 residents. Over the trailing year it ranked 11th per capita.
Applications are growing faster than the population
Arizona is one of the country’s faster-growing states by population. Its estimated population reached 7.62 million in July 2025, up 6.1% from the 2020 Census base and eighth among states for growth.
Business applications increased much more over a longer, partly overlapping period: July’s total rose from 6,367 in 2019 to 14,085 in 2026, an increase of 121.2%. These comparisons do not show that population growth caused the increase in filings; they simply establish that both measures rose, at very different rates and over different windows.
The latest month also illustrates why direction and level should be kept separate. July applications were down 2.1% from June even as they remained well above the prior year. Arizona can have a high and rising annual application rate without increasing every month.
Applications are qualifying EIN filings, not confirmed business openings. Census identified 3,306 July applications as high propensity, 23.5% of the total, and projected 734 employer formations from the cohort within four quarters. Those measures narrow the lens toward potential payroll employers, but they remain a classification and model estimate—not observed openings or a success rate.
Arizona’s statewide economy is heavily concentrated in Maricopa County
Maricopa County accounted for 2.02 million jobs, or 69.8% of employment covered by 2023 County Business Patterns. Only one state had a larger share of its covered private jobs in a single county. Pima County contributed 11.8%, while Yavapai County held 2.4%; together, the top three counties represented 84.0% of the state total.
Statewide employment conditions are therefore heavily influenced by metropolitan Phoenix, while Tucson and smaller markets account for a much smaller share of the measured job base. The county percentages describe workplace employment, not the location of applications.
Health care and social assistance was the largest covered sector, employing 434,866 people. Retail trade employed 358,161, and accommodation and food services 343,720. Finance and insurance had Arizona’s highest large-sector location quotient at 1.33—meaning its employment share was about one-third above the 50-state share—but that is a supporting feature rather than an exceptional national specialization.
Many small businesses, but a lower share of private employment
The SBA reported 706,640 Arizona small businesses using 2022 component data. The count included 121,389 small employer firms and 585,251 nonemployer businesses. In other words, 82.8% of the published total had no paid employees.
Arizona’s small firms employed 1,186,389 people, equal to 42.6% of private-sector employment. That share ranked 46th among states: Arizona has a large small-business count and strong application activity, but small firms account for a comparatively low portion of payroll jobs.
Official starting points for an Arizona business
- Entity filings: The Arizona Corporation Commission handles corporations and LLCs and provides filing access and entity searches.
- Tax licensing: The Department of Revenue explains transaction privilege tax, which can apply based on business activity and jurisdiction.
- Licenses and permits: Arizona does not issue one universal statewide business license. The Commerce Authority’s Small Business Checklist helps identify state, city, and industry requirements.
- Startup sequence: The Corporation Commission’s 10-step guide organizes the relevant state-agency steps.
Source and calculation note
Application figures use the Census July 2026 Business Formation Statistics release. July values are seasonally adjusted; the trailing-year total sums unadjusted applications from August 2025 through July 2026 and compares them with the prior August–July period. Rates use the July 1, 2025 population estimate. SBA totals and employment use 2022 federal component data. County and industry measures use 2023 County Business Patterns employment. BizFacts calculated changes, rates, location quotients, shares, and 50-state ranks from data retrieved September 3, 2026.