• Arizona Contractor & Community

Why Arizona is Great for Construction Startups

Updated: Oct 13

Every construction worker knows how important location is, and the right location is required for more than just your job site. As the title suggests, Arizona is the place to go for construction startups looking to establish their business. Choosing the right location for your startup business will inevitably impact how you conduct business, the clients you get, and even the grants that you're eligible for. If your business has taken a backseat due to the pandemic, this article will hopefully help make one of the most important business decisions — where to set up shop — a lot easier for you.

Small business support Local economies are built up and supported by small businesses, and Arizona knows that. In an interview with Construction Dive, Arizona Builders Alliance president Tom Dunn maintains that "One of the advantages that Arizona has is that it is a right-to-work state. So, another reason people are wanting to invest and develop in Arizona is because the construction costs are lower here than in the rest of the country." Construction is a labor-intensive business, and right-to-work policies can help build employee morale and incentivize top performers to stay and grow within a company. The City of Phoenix has also set up a relief grant to help small businesses, but policies such as right-to-work are how you know that a state has a true commitment to its small businesses. Option to register under different business structures Choosing the right business entity is as important as choosing where to locate your business in the first place. Chron highlights that setting up as a limited liability company (LLC) may be a good move for construction companies as this protects your personal assets from any claims made against your business. Arizona allows you to go through the registration process online. In reality, forming and registering an LLC in Arizona is a straightforward process. You'll need a company name and operating agreement, which you probably already have. From there, you'll need a statutory agent who will receive all your company’s legal documents on your behalf, an employee identification number, and your Article of Organization. Arizona also requires LLCs to publish your Article of Organization in a newspaper within your county. Thriving construction industry The fact that Arizona takes care of its construction businesses means that the companies who do set up shop have the freedom to be as innovative as possible. The upcoming Reunion Rehabilitation Hospital Phoenix project is one such example, and goes to show that construction companies are vital in shaping the lives and care of the communities they live in. The Construction Dive piece also highlights that data center construction is booming in Arizona, thus providing construction companies a lot of opportunities to partner with international companies and open up more spaces for business in the state. Of course, there are other factors that feed into the growth of the construction industry such as Arizona's reputation as a transportation hub and its relatively low record of natural disasters. Construction companies thrive in Arizona, and these three factors are the proof of that. Indeed, it's clear that establishing your construction business in Arizona is the way to go if you truly want to start your business off on the right foot.

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