How to Get a Business License in Arizona

If you form a new business in any state including Arizona, there are certain rules that will be applicable to all forms of entities. There are mandatory requirements like that of obtaining an Arizona business license. Getting a proper business license or operational permits is considered a part of legal compliance. It also helps build credibility although licenses may vary according to the business activity. Hence, we have created this detailed guide on the various forms of Arizona business license and permits. This guide will also help you identify the type of licenses or permits that may be required by your company specifically.

Business License in Arizona

In order to make your business operational in Arizona, there are several requirements that you will need to fulfill. These include registering your company with the state, paying taxes and obtaining an Arizona business license. Identifying the right license according to industries and jurisdictions can be quite tricky as the rules, requirements, and fees vary from city to city or county to county. You might not see a clear way forward. Nevertheless, if you fail to obtain an Arizona business license then that can be a costly affair for your company. Operating without the required license may lead to penalties including fines and lawsuits and in extreme cases, even dissolution of your company.

Who needs an Arizona business license?

Whether you form a sole proprietorship, LLC, corporation or any other form of domestic or foreign entity, Arizona business licenses and permits are mandatory. There are certain processes and steps you must follow to procure these licenses and permits. As a business owner, you will need to conduct a detailed Arizona business license search to identify the licenses required by your company. There are basically three forms of licenses –

Federal Licenses and Permit
State Licenses and Permit
Local Licenses and Permit

Now, when you register your company in Arizona, you may be required to apply for all three forms of licenses or a combination of any two. Again, there are some businesses like home-based entities that might not require licenses at all. This is also an important reason for conducting an Arizona business license search. Most often than not, your company may require a license because it is located in a specific area, county, or city. Then again, you may need to apply for a license if your business activity conforms to certain parameters provided by the state like retail sales or wholesale.

What business license do I need in Arizona?

Many states in the USA have a common or general license for all types of entities. A general license is a basic license for operating within the state. The state of Arizona doesn’t have this general license also known as a statewide business license. Instead, you may need to obtain an Arizona business license and permit based on your primary business activity and location of the business. It is also important to note that there are several cities as well as counties where you need to apply for a local license prior to beginning operations. This is especially required when planning to operate within the city or county limits or jurisdiction.

If you conduct an Arizona business license search then it will help you to identify the permits that you will have to obtain for making your company operational. There are certain industries and activities that have been regulated by a federal agency like alcohol. If your business is associated with such activities or industries then federal licenses will have to be obtained.

Type of Business Licenses in Arizona

If you are planning to start an LLC or a corporation in Arizona then you would need to apply for different types of licenses or permits. You may be required to obtain an Arizona business license at the state level and the county level. Let’s take a look at the important licenses.

State Transaction Privilege (Sales) Tax (TPT) License

One of the most commonly required licenses in the state is the Transaction Privilege (Sales) Tax (TPT) License. This is a license based purely on business activity. If your company is into specific activities especially those connected to selling a specific product or engaging in a service then you will require this license. The Arizona Department of Revenue is responsible for issuing this license. You can conduct an Arizona business license search with the Arizona Department of Revenue or the Arizona Commerce Authority to identify if your business activity qualifies for this license. Some of the common activities requiring this license include Advertising, Feed at Wholesale, Transient Lodging (hotel/motel), Residential Rental, Restaurants and Bars, and Retail Sales Food for Home Consumption among others.

This type of license is also known as the sales tax license, tax license, or resale, wholesale, and vendor license. In order to obtain an Arizona business license or TPT license, you will need to file the Arizona Joint Tax Application (JT-1). If you have multiple business locations like a retail store then you can apply for one license number for all locations or choose multiple license numbers for all locations. If your company is based in multiple locations then the license fee would be different for different locations. Example – The license fee in Casa Grande is $2 but in Temple, the fee is $50. The fee for remote sellers selling in this state will also be different from those based in this state.

Business License/Local Licenses/Permits

You have registered a new business in Arizona. Its office is situated in the town of Queen Creek. This is a typical scenario in which a business will need to apply for state licenses as well as local licenses and permits. The local licenses are mandatory in some cities and counties. Hence, it is important to conduct an Arizona business license search to identify the specific permits or licenses required in the county or city or jurisdiction in which you are operating. The licensing regulations, requirements, and fee will vary from one jurisdiction to another.

Another important aspect of local Arizona business licenses and permits is the zoning ordinances. Each county or city in Arizona has their own local ordinances. So, if you were to open an office in the city of Apache Junction then it will be important to check the Apache Junction City Code Volume II Land Development Code. The issuance of license and zoning permits vary from one county to another depending on these ordinances. Let’s look at an example to understand this.

Example: You start a company in the town of Queen Creek, AZ. Your primary business activity is Retail Sales. You will first need to obtain an Arizona business license or TPT license. Then you will need to file the Business License Application for operating from the town of Queen Creek. This is mandatory and there is a fee of $60. Depending on the location of your company, zoning approvals will be required from the Planning Department, Utilities Department, Fire Department, and Town Clerk. If applicable, you will also need to provide wastewater discharge information along with the license application.

Regulatory (Professional/Special) Licensing Permits

The third type of Arizona business license is known as the regulatory licenses or permits. This type of license will be required by your company if the primary activity requires supervision or regulation by single or multiple state, municipal, and federal government agencies. Some of the activities are defined under the professions and occupations category of the Colorado Code – Title 12. You may even need to apply for and obtain a special Arizona business license and permit or even certification wherever required. This is apart from the state and local licenses. Your business may require all three forms of license depending on the business activity.

Example: Your business is situated in Tempe, Arizona. Your primary business activity is selling any type of tangible property including food and drink. You will be considered as a mobile merchant. Hence, you will need to apply for a regulatory Arizona business license. There is a non-refundable license fee of $150 for new licenses and has to be renewed annually by January 1 each year. You will have to undergo background checks and get a fingerprint card from the licensing unit for the Tempe Police Department.

When it comes to a profession or an occupation then some of them are considered as regulated business occupations or activities. These may include transportation for hire, construction contracting, selling alcohol, adult care home, child care, massage, pest control, sales of tobacco, and home inspection among others. So, if your business is based in the City of Scottsdale and you are selling liquor then you will need to obtain an Arizona business license by filing the Spirituous Liquor Permit Application.

Alternatively, you can opt for IncParadise “Business License Research Report” service. This is a research report, which contains a list of filing instructions, supporting document requirements, and fees for all business licenses and permits applicable in the state of Arizona.

Need any Assistance in Obtaining Your Arizona Business License?

If you are planning to establish an LLC or any new company in the state of Arizona then there are certain compliances to adhere to. These are also considered as state annual maintenance requirements. One such important requirement is obtaining an Arizona business license. This will help your company to become operational in the state. If you operate without the relevant licenses then you will be penalized. The type of Arizona business license and permits will vary according to business activity and location. Hence, it is important to conduct in-depth research of the state laws and local zonal requirements.

We, at IncParadise can guide you towards obtaining the necessary business licenses and permits in this state. We also provide additional services to new and existing Arizona businesses like EIN Tax ID and Foreign Qualification among others.