How to Get an Arizona Business License (2023 Guide) (2023)

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Arizona is known to be one of the best states to do business. You may be ready to take off, but starting a business involves many crucial steps, such as obtaining an Arizona business license. In this article, we will break down the three basic types of business licenses in the state of Arizona. This guide will help you determine what category your business falls into and what licenses and permits you may need to legally operate your business.


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Does Arizona require a business license?

There is no general business license in the state of Arizona or one type of license that applies to all businesses. However, most towns or cities in which a business operates require a license. While not everyone will need a business license, the type of business you operate, the nature of your business, and your location will determine the license requirements to operate.

Arizona Business License Searchis a great tool to help you determine if you need a license and how to register your business.

(Video) How to Start an LLC in Arizona (Step by Step 2023) | Arizona LLC Formation Guide

Types of Business Licenses

In general, there are basically three basic types of business licenses in Arizona: Transaction (Sales) Privilege Tax (TPT), Business, and Regulatory (Professional/Special). If your business falls into one or more of these categories, you must apply for the necessary licenses.

  • State Tax Transaction (Sales) Privilege (TPT) License.This license is required for any business that sells a product or provides a service subject to state transaction privileges tax. This is commonly known as sales tax, resale tax, sellers tax, wholesale tax, or license tax. For more information on whether or not your business activity is subject to the transaction (sale) or use (tax) privilege, seeArizona Department of Revenue (ADOR). Your business must register with ADOR before any taxable activity can occur in Arizona.
  • Business License/Local Licenses/Permits.Every city or town in Arizona where a business is located or operates may require a license. It is best to check with the town hall where your business is located or operates to obtain the necessary permits.
  • Statutory licenses (professional/special).Certain businesses and professions may require special licenses, certifications, and permits. Business regulations depend on the type of industry, as well as state, local, and federal government requirements. To search for trade compliance requirements, you can use theArizona Commerce Authority (ACA) Small Business Services Checklist Program.

To better serve you when starting a new business, theArizona Department of Revenue(ADOR) is available to help business owners maintain tax and license compliance. If you need help determining the license, contactlicense complianceat

Steps to Obtain Your Arizona Business License

To download the business license preparation process, we've listed six important steps to determine what licenses, permits, and tax returns your business may require in the state of Arizona.

Here's how to get a business license in Arizona in six steps:

1. Evaluate your need for a license

If you plan to operate a business in the state of Arizona, you will likely need some form of license to operate, but licensing and registration requirements are not all the same. EITHERArizona Commerce Authority Small Business Checklistcan help you determine what licenses you need, if any. You may need a license if:

(Video) How to Start an LLC in Arizona in 2023

  • You sell a taxable product or service
  • Conduct business in a town or city that requires a business license
  • Your type of business requires a state, federal or state license, such as selling alcohol, giving massages, preparing food, managing investments, etc.

2. Have business information ready

Each app is a bit different, but you can expect to provide the following information
when applying for licenses and permits:

  • taxpayer information
  • type of license
  • Property
  • Federal Employer Identification Number
  • Business Name
  • TPT Information (once you get it, see Step 3)
  • Business start date
  • Sales start date

3. Apply for the Arizona Tax License

If you plan to sell a product or contract for a service subject to TPT (Transaction Privilege Fee), you will need to obtain a license from TPT. This is commonly known as a seller's permit in some states. To obtain a TPT license you will need to visit therevenue Department. You must obtain a TPT license for each location where business is conducted. Some taxable business activities include:

  • retail sales
  • Restaurants/bars
  • hotel/motel
  • rental of personal property
  • independent contractor

4. Apply for the local Arizona business license

Eachciudadin Arizona has its own rules regarding business requirements and may require permits and licenses specific to your business. You should check with the city where your business is located to see if there are any zoning restrictions, such as where you can locate your business and what improvements you can make to an existing property.
Some common local licenses and permits include:

  • sick leave
  • zoning license
  • building permit
  • business license
  • signage license

5. Apply for state and local regulatory licenses and permits

Check directly with state agencies or check the Arizona Business One Stop page to determine if you need state licenses for your business. You should also check with the county office to comply with the necessary licenses and permits. Some examples include:

  • food related business
  • sale of firearms
  • pet Shop
  • auction houses
  • Pawnshops

6. Apply for Federal Business Licenses and Permits

If your business activities are regulated by a federal agency, you will need to obtain a federal license or permit. Fees and requirements depend on the nature of the business and the agency issuing the license or permit. Some examples include:

  • US Department of Agriculture:issues authorizations for the import, transit and release of regulated animals, animal products, plants, veterinary biologics and much more
  • Secretary of Commerce and Taxes on Alcohol and Tobacco:if you manufacture, wholesale, import or sell alcoholic beverages in a retail establishment
  • Bureau of Alcohol, Tobacco, Firearms and Explosives:if your company manufactures, markets or imports firearms, ammunition and explosives

How much does a business license cost in Arizona?

The price of a business license or permit can vary depending on the type of license, business location, processing fees, and recurring fees.

Phoenix charges an application fee of $24 to $1,665 and a license/authorization fee of $10 to $360, depending on the type of business. On the other hand, the City of Flagstaff requires a general business license for every permanent business location in the city, unless exempt. The fee is $8 and is paid to the City of Flagstaff.

The state fee for each new TPT license/location is $12 plus any applicable municipal fees. This fee also applies when there is a change in business location or a program city is added or a reprint is requested. There is no additional cost to cancel or reinstate a license. If the ownership of your business changes, the TPT license is not transferable.


Please note that almost all licenses expire after a period of time and must be renewed annually. In general, there are a wide variety of permits and licenses to keep track of.

Every company should check with theArizona Trade Authority, City Clerk, County Clerk, and local Chamber of Commerce for more information on specific business licenses.

(Video) Arizona LLC | How to Start an LLC in Arizona (in 2023)

frequent questions

How do I register my business in Arizona?

You must complete the application form for each local agency or office and submit it directly to them according to their specific instructions. For example, the TPT license can besent three ways(online, in person or by mail to the address indicated on the form).

How can I change my company name?

You must notify all offices that issued a license to determine their procedures for name changes. For example, you must notify the Department of Revenue in writing by completing the Business Account Update (Form 10193) in addition to submitting payment with the form. The form is available atwww.azdor.govin the Transaction Privilege Tax (TPT) Forms section.

How can I cancel my license?

To cancel a license, you must contact the agency or municipality that issued it. For changes to the TPT license, the current owner or corporate director of the license must make an application to cancel or suspend a business license. Your request can be made in three ways:

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  • TPT Tax Return: Check the "Final Return" box and submit the form as usual
  • Online:www.aztaxes.govin trading account update function
  • Written request including license number, company name with signature, or written license cancellation with expiration date. Mail to:

License and Registration
1600 W. Monroe St.
Phoenix, Arizona 85007

How long does it take to get a business license in Arizona?

It generally takes no more than seven business days to receive your business license once it has been processed by the state of Arizona. You will receive the license via the email address used to request the license, unless other arrangements have been made. You can print the business license and post it in a highly visible location in your business if it is open to the public.

What are the types of business licenses?

The term "business license" can sometimes describe a general operating license, but is often used to refer to a variety of permits. The most common types of business licenses include:

  • A business operating license, sometimes just called a business license
  • A sales tax license, which allows businesses to sell goods and services.
  • A liquor license if your business sells or distributes alcohol
  • Specialty licenses, such as accounting, massage therapy, plumbing, or legal counseling

Can you operate a business without registering it?

You can run a business as a sole proprietorship (only you) or general partnership (you and one or more partners) instead of forming a business entity such as an LLC or corporation. However, sole proprietorships and partnerships may be required to register DBAs and obtain business licenses from government agencies. Learn more about the differences between asole proprietorship and an LLC.


How to Get an Arizona Business License (2023 Guide)? ›

Business License - Arizona does not issue nor require a state business license, however, most city/town offices issue business licenses.

Does an LLC need a business license in Arizona? ›

Business License - Arizona does not issue nor require a state business license, however, most city/town offices issue business licenses.

Which state is the easiest to get a business license? ›

The best states to start a business are Delaware, Wyoming, and Nevada. These states stand out, especially for small businesses, because they have low tax requirements, business-friendly laws and savvy court systems.

What do I need to start a business in Arizona? ›

How to start a business in Arizona in 8 steps
  1. Choose your business entity.
  2. Choose a business name.
  3. Write your business plan.
  4. Register your business in Arizona.
  5. Separate your personal and business assets.
  6. Secure funding.
  7. Obtain your licenses and permits.
  8. Review an employer's responsibilities.
Sep 11, 2020

How do I get a business license in Maricopa AZ? ›

Maricopa County does not issue a General Business license. The Arizona Department of Revenue provides a Licensing Guide for obtaining business licenses in Arizona. Certain Food establishment and activity permits are obtained through Maricopa County Environmental Services.

How much is a LLC license in Arizona? ›

Arizona LLC Cost. The state fee for LLC formation in Arizona is $50. Most Arizona LLCs also need to pay to publish an announcement of their LLC formation in a local newspaper, which can cost anywhere from $60 to $300. LLCs in Arizona don't file annual reports, which means you won't need to pay an annual report fee.

How much does an Arizona business license cost? ›

The price of a business license or permit can vary depending on the type of license, business location, processing fees and recurring fees. Phoenix charges an application fee from $24 up to $1,665 and a license/permit fee between $10 and $360, depending on the type of business.

What is the best state to own a small business in? ›

1. Texas. Texas is the best state to start a business. Businesses in Texas consistently land loan dollars for their operations, with nearly $3 billion in small business loans approved in total, coming in second after California.

What state is best to open LLC for non residents? ›

Which state is best for non-resident LLCs? Wyoming, New Mexico, and Delaware are the best states for non-citizens to register LLCs in the US in terms of popularity. The factors driving their popularity with foreign founders are privacy, low costs, and funding-friendly local regulations.

Which state is most advantageous to open an LLC? ›

Below we'll dive deep into the pros and cons of forming an LLC in the “best” states.
  1. Delaware. Delaware has a longstanding reputation for being one of the most business-friendly states in the nation. ...
  2. Nevada. ...
  3. Wyoming. ...
  4. Alaska. ...
  5. South Dakota.
Mar 28, 2023

How do I get a business license in Arizona? ›

Steps to Apply for Business Licenses and Permits in Arizona
  1. Search for any Arizona general business licenses.
  2. Obtain applicable federal licenses for your Arizona business.
  3. Check for Arizona permits and licenses.
  4. Check your city or county for local licensing in Arizona.
  5. Search for applicable Arizona professional licenses.

What is the best business to start in AZ? ›

Best Businesses to Start in Arizona
  • Travel Agency.
  • Arts and Crafts.
  • Online Teaching.
  • Financial Planning.
  • Courier.
  • Insurance Sales.
  • Event Planning.
  • Food Truck.

How long does it take to start a business in Arizona? ›

Arizona LLC Approval Times

Mail filings: In total, mail filing approvals for Arizona LLCs take 4-5 weeks. This accounts for the 14-16 business day processing time, plus the time your documents are in the mail. Online filings: In total, online filing approvals for Arizona LLCs take around 3 weeks.

How long is an Arizona business license good for? ›

The state of Arizona and its cities and towns continue to work together to achieve the goal of simplifying the manner in which taxpayers report and pay their transaction privilege tax (TPT). The Arizona Department of Revenue (ADOR) requires all licensed businesses to renew their Arizona TPT license annually.

How do I register an out of state business in Arizona? ›

To register a foreign corporation in Arizona, you must file an Application for Authority to Transact Business in Arizona with the Arizona Corporation Commission, Corporations Division. You can submit this document by mail, fax, online, or in person.

How much does it cost to register a small business in Arizona? ›

It can cost anywhere from $10 to $60 to file for an Arizona business entity. Other costs may include licenses and permits, lease costs and general overhead. Every business is different and should develop a reasonable starting budget.

How much taxes does an LLC pay in Arizona? ›

Arizona LLCs have a default tax status as pass-through entities, which means the LLC's income is reported on the members' individual tax return. LLC members are taxed at a 15.3% rate, while LLCs that choose C-corp status are taxed at 4.9%.

Is AZ a good state to LLC? ›

The primary advantages of forming an LLC in Arizona are: Easy to Form – With less paperwork and less expenses, formation of an LLC is easier than other business structures.

How long does it take to register an LLC in Arizona? ›

Though processing times vary depending on the number of pending applications, it generally takes a little under two months to process an LLC registration in Arizona. Most applicants report the process takes 50 – 55 days. If time is of the essence, you can pay an additional fee for expedited processing.

Do I need a sellers permit in Arizona? ›

Arizona cities generally require anyone selling at retail within their jurisdiction to obtain a city business license and a city privilege tax license. Remote sellers and marketplace facilitators with no physical presence in Arizona are not required to obtain any city business licenses.

Do I need a business license for an online business in Arizona? ›

Q: Do I need a business license? A: Business licenses are handled at the city level. There is no business license for the State of Arizona. Contact the city in which you are located to see if that city requires retailers to obtain a city business license.

Do I need a business license to sell crafts in Arizona? ›

Arizona imposes a “transaction privilege tax” or TPT on the privilege of doing business in the State of Arizona. If you sell tangible personal property of ANY kind, including crafts and foods, you MUST be licensed and pay the TPT or sales tax on those sales.

What is the best state to live in financially in 2023? ›

1. Mississippi. Coming in as the cheapest state to live in in the United States is Mississippi with a cost of living index score of 83.3. It also has the lowest average housing costs in the nation at 33.7% below the national average.

What is the #1 state for business? ›

Best and worst states by business survival rates: Washington state has the highest year-to-year business survival rate across the nation at 89%.

What is the easiest place to start a business? ›

New Zealand

Can I transfer my EIN to another state? ›

Your EIN is used by the IRS for federal tax purposes. Therefore, relocation usually does not affect your EIN if you are sole proprietor who moves their business to another state in the United States. You might have to pay certain state taxes that are specific to your new state, however.

Why is Delaware good for LLC? ›

Delaware is often considered one of the best states to form an LLC because it has limited fees and tax obligations. In fact, many businesses choose to form an LLC in Delaware even if they don't intend on doing business in Delaware.

Which state has the lowest taxes for an LLC? ›

While there are no specific laws that make it more suitable for LLCs than other states, Delaware is the state of choice to incorporate because of their business-friendly corporate tax laws. There's a reason why 66.8% of all Fortune 500 companies choose Delaware as their incorporation state.

What types of businesses are best suited for LLC? ›

LLCs can be a good choice for medium- or higher-risk businesses, owners with significant personal assets they want protected, and owners who want to pay a lower tax rate than they would with a corporation.

What type of LLC is most common? ›

Single-member LLCs are recognized in every state and are the most common type of LLC. Here, the word "member" is a stand-in for "owner." Single-member LLCs have an individual owner. The Internal Revenue Service (IRS) treats them as sole proprietorships for tax purposes.

Do I need to register my out of state business in Arizona? ›

If a foreign entity wants to transact business or conduct affairs in Arizona, it must register with the Arizona Corporation Commission. The entity must determine for itself if its activities constitute the transaction of business – the A.C.C.

How do I register a small business name in Arizona? ›

To register a trade name, go to the Arizona Secretary of State's website. You can also register "dba" or trade names with the County Recorder's office. To check on the availability of and reserve a name, click here.

How do I get a tax ID number in Arizona? ›

You must have a federal tax ID number, or EIN, in order to get an Arizona state tax ID number. You can go to a local Internal Revenue Service to apply or call the IRS directly. The exception to this is if you are a sole proprietor with no employees.

How to start a business with $100 000 dollars? ›

Let's talk about those types of the best business to start with $100k that will bring you big profits.
  1. Cryptocurrency Trading. ...
  2. Web & mobile app development. ...
  3. Launch your SEO agency. ...
  4. Start a Digital Marketing Agency. ...
  5. Start an eCommerce Store. ...
  6. Start an eCommerce Store.

How long until a small business is profitable? ›

Two to three years is the standard estimation for how long it takes a business to be profitable. That said, each startup has different initial costs and ways of measuring business profitability. A business could have enough cash to become profitable immediately or take three years or longer to make money.

How fast can you start a small business? ›

Typically it takes a startup business 6 months to one year from initial idea to product launch and their first paying customers. Service businesses can be launched in 3 months, online businesses in 30 days and retail stores, restaurants, and clothing lines commonly take one year from conception to launch.

Is Arizona a good state to do business? ›

Chief Executive. In putting Arizona no. 4 in its CEO rankings for its “Best & Worst States for Business,” the magazine cited the Small Business Jobs Index that said the state was tops in small business job creation in 2021.

How much is a sales tax license in Arizona? ›

How much does it cost to apply for a sales tax permit in Arizona? The state of Arizona charges $12.00 per application for a sales tax permit. On top of that, vendors are required to file for a sales tax permit in individual cities where they do business.

How often do Arizona licenses expire? ›

While licenses are currently valid for eight years, there are many residents whose license doesn't expire until they turn 65. At that point, renewals are required every 5 years.

Why are Arizona licenses good for so long? ›

Why Do Arizona Driver's Licenses Last So Long? Arizona law states that a driver's license doesn't need to be renewed until the driver turns 65 years old. The standards were set by Arizona lawmakers decades ago, and in 1999 state legislators actually voted to extend the renewal age from 60 to 65.

Can I work in Arizona with an out of state license? ›

What the new law does not do: The new law DOES NOT recognize other states' occupational licenses automatically. For example, workers licensed in other states who move to Arizona still must apply for a license through the appropriate Arizona licensing board before working.

Can an Arizona LLC have an out of state address? ›

Limited Liability Company (LLC)

Arizona law requires that every LLC (foreign or domestic) have an Arizona business address.

Can I name my business the same as another in a different state? ›

You can often use the same business name in your own state or another state, if it is not in the state where the business name is filed, and it doesn't violate trademark rules.

What qualifies as a small business in Arizona? ›

A qualified small business means a corporation, limited liability company, partnership or other business entity that has at least two full- time equivalent employees who are Arizona residents and whose sole responsibilities are not administrative and that maintains at least a portion of its operations at an office or ...

How much does an LLC cost in AZ? ›

Arizona LLC Cost. The state fee for LLC formation in Arizona is $50. Most Arizona LLCs also need to pay to publish an announcement of their LLC formation in a local newspaper, which can cost anywhere from $60 to $300. LLCs in Arizona don't file annual reports, which means you won't need to pay an annual report fee.

Do I need a business license if I have an LLC in Arizona? ›

But good news: Arizona doesn't require a general license to do business in the state. Meaning, your Arizona LLC doesn't need a general state business license. But depending on what type of business you run, your LLC might need an occupational license.

What is needed to form an LLC in Arizona? ›

  • Name your Arizona LLC.
  • Choose your statutory agent.
  • Prepare and file articles of organization.
  • Receive a certificate from the state.
  • Create an operating agreement.
  • Complete publication requirements.
  • Get an Employer Identification Number.
May 11, 2023

What are the tax requirements for an LLC in Arizona? ›

Arizona LLCs have a default tax status as pass-through entities, which means the LLC's income is reported on the members' individual tax return. LLC members are taxed at a 15.3% rate, while LLCs that choose C-corp status are taxed at 4.9%.

What is the cheapest way to set up an LLC in Arizona? ›

You need to file an Articles of Organization in order to create an LLC in Arizona. The Arizona Articles of Organization can be filed by mail or online. The fees for both are the same: $50 for regular filing and $85 for expedited processing. These filing fees are the only initial LLC formation cost in Arizona.

What are the benefits of an LLC in Arizona? ›

The benefits of starting an Arizona LLC:
  • Filing fee is only $50.
  • No franchise tax.
  • File taxes easily and find other potential advantages for tax treatment.
  • Protect your personal liability from your business liability and debts.
  • Quick and simple filing, management, compliance, regulation and administration of your LLC.

Do LLCs pay taxes in Arizona? ›

Every corporation subject to the Arizona Income Tax Act of 1978 must file an Arizona corporate income tax return. A limited liability company that makes a valid federal election to be taxed as a corporation must file an Arizona corporate income tax return.

Does an Arizona LLC pay state taxes? ›

If your LLC will be taxed in its default status with the IRS, the state of Arizona doesn't impose a state-level income tax on your LLC. Instead, the profits from your LLC flow-through to the owners (Members) and you'll be responsible for paying state income taxes on the personal level.

Does Arizona allow single member LLC? ›

For many new entrepreneurs and small business owners, though, having one or more partners in their Arizona LLC is either impossible or would cause more headaches than it would solve. For those of you in that situation, don't fret; the Arizona legislature says it's OK to be a single member.

Do I need a tax ID to start an online business? ›

Your business needs a federal tax ID number if it does any of the following: Pays employees. Operates as a corporation of partnership. Files tax returns for employment, excise, or alcohol, tobacco, and firearms.

Do I need a business license to be a handyman in Arizona? ›

Do you need a license to be a handyman in AZ? Yes, you need an Arizona handyman license if you're performing work that's valued more than $1,000. For small repairs and services under the $1,000 threshold, like painting drywall and furniture assembly, no license is required.

Can I sell things I make as a hobby? ›

shop and expect others to pay a fair market value for your finished objects, the IRS then considers you to be a handmade business – because you then intend to make a profit on the items you sell. And that's when EVERYTHING changes, and you need to step up your game.

Can you sell things without having a business? ›

Temporary permits are issued to individuals with no permanent place of business, and cover a selling period of 90 days or less at one location. The registration process is the same whether you are registering for a temporary seller's permit or a seller's permit for a permanent business location.


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