Starting a Business in Arizona Checklist
Check business name availability with the Arizona Corporation CommissionSearch to see if the business name you want to use is available. Do a name search here: Arizona does not require name reservations. Arizona Corporation CommissionCorporations Division |
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File paperwork to form my businessIf you want to form an Arizona corporation or Arizona LLC you can submit your articles to the Corporations Commission in person or you can mail them with a check. It will cost $60 to file Articles of Incorporation. It costs $50 to file Articles of Organization for an Arizona LLC. Normal processing of your articles will take at least 3 weeks. Corporations and LLCs can pay an extra $35 for expedited processing, which is done in 3-5 business days. Arizona LLCs have to publish their articles of organization within 60 days of filing. After the Corporations Commission approves your articles, they should provide you with instructions and a list of acceptable newspapers for publication. In your formation documents you will need to list entity type, entity name, character of business (purpose), shares (corporations only), director/member names and addresses, statutory agent’s name and address, known place of business address. If the requirements for forming a business entity seem too overwhelming or confusing, you can incorporate in Arizona with Northwest Registered Agent. Corporations DivisionArizona Corporation Commission
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Register with the Department of RevenueIf you provide a product or service, your business is probably subject to the Arizona transaction privilege tax. This includes restaurants, retail sales, construction, etc. The state transaction privilege tax license (also called sales tax, resale, wholesale, vendor or tax license) comes from the Arizona Department of Revenue. Arizona Privilege Tax:If you provide a product or service, your business is probably subject to the Arizona transaction privilege tax. This includes restaurants, retail sales, construction, etc. The state transaction privilege tax license (also called sales tax, resale, wholesale, vendor or tax license) comes from the Arizona Department of Revenue. Arizona Corporate Net Income Tax:6.96% corporate income tax with a $50 minimum payment Arizona Personal Net Income Tax:Between 2.59% and 4.54% Arizona Sales Tax:5.6% state sales tax Arizona Department of RevenueDepartment of Revenue
1600 West Monroe Phoenix, AZ 85007 P: (602) 255-2060 |
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Get a business licenseArizona does not have a state business license requirement. Some businesses will be licensed, and others will not. It really depends on the type of business. The Arizona Department of Revenue offers a really helpful guide to taxes and licenses http://www.azdor.gov/Business/LicensingGuide.aspx Any other registration requirements? Many Arizona businesses will need a state transaction privilege tax license from the Department of revenue AND a local privilege tax license for the city or county where they do business. The State Department of Revenue collects the tax for most of the smaller cities in Arizona (program cities). Some larger cities that require you to have a local privilege tax license. Tucson and Phoenix, for example, regulate their own business licensing. Both cities allow you to apply online or use the paper form. Get a privilege tax license in Tuscon: http://cms3.tucsonaz.gov/etax Get a privilege tax license in Phoenix: http://phoenix.gov/finance/plt/licensing/privilegetax/index.html For a complete list of cities that collect their own privilege taxes and their rates: www.azdor.gov/business/transactionprivilegetax/nonprogramcities.aspx You should always check at the city and county level to see if the type of business you operate requires any additional licensing. Local License InfoCity of TucsonBusiness Licenses City of PhoenixFinance Department |
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Collect and Charge Sales TaxDo I need to collect Arizona sales tax?If you provide a product or service, you probably need to register for the Arizona transaction privilege tax. The TPT is no like an actual sales tax. It is actually a tax on the business, which usually gets passed on to the consumer. What is the Arizona sales tax rate?Arizona has 5.6% state sales tax. How do I register for Arizona sales tax?Get your state transaction privilege tax license (also called sales tax, resale, wholesale, vendor or tax license) from the Arizona Department of Revenue. Some cities and counties have their own transaction privilege taxes. The Department of Revenue collects most city and county transaction privilege taxes, but you will want to check with your local government regarding their requirements. How much does an Arizona transaction privilege tax license cost?There is a $12 fee per business location in Arizona. Arizona Department of RevenueArizona Department of Revenue 1600 W Monroe (602) 542-4576 |