S-corporation in different state than I now live.
If you are physically operating your business from Arizona, then you certainly have nexus in Arizona and need to register your business there. Having said that, California will not easily let go of the nexus you have already established there. California has recently passed a law creating a concept known as economic nexus. Simply by selling enough to California customers, you effectively have California nexus, so it is likely that under current California law, you would need to continue to pay tax in California also and will likely need to apportion your income between the two states.
Every situation is unique and nexus is very fact based, so I would highly recommend that you contact a tax professional who can assist you with the pros and cons of your unique situation and help you decide where is the best place to have your business incorporated