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

FAQs

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.

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

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.

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.

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.

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.

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.

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.

How do I get a business license 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.

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.

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.

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.

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%.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.

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 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.

Limited Liability Company (LLC)

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

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.

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 ...

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.

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.

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%.

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.

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.

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.

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.

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 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.

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.

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.