Do I need a business license in Arizona?
In Arizona not all businesses need a license and
some businesses may need more than one. It depends
on the type of business activity that you will be
doing with your new business. Arizona has business
licenses that you may need to obtain from the state
of Arizona, as well as from your county or city where
your business is located.
What Arizona state business licenses do I
need?
Your business activity may be subject to Regulatory
Transaction Privilege Tax (TPT) (for professional/special
activities), and/or business/occupational licensing.
First you should find the agency that may require
licensing, certification, or permits for business
activity conducted in Arizona. If you are not sure
which agency is correct for you, you may wish to search the Guide to Taxes for Arizona Businesses.
Most of the links will take you directly to the applicable
agency's home page. Information on licensing and other
information on business activity requirements may
be found on the agency web sites under such terms
as : Licensing, Permits, Certifications, Applications
and/or Forms. (i.e., if you are opening a new assisted
living home and center you would go to the Department
of Health Services, and obtain an Assisted Living
Licensure. This would require both an application
for construction or modification; and an application
for licensure.)
What is Transaction Privilege Tax (TPT)?
The State Tax License (or sales and use tax) is called
a Transactional Privilege Tax (commonly referred to
as a TPT, sales, resale, wholesale, vendor or business
license). You must obtain this license if you are
involved in an activity taxable under TPT BEFORE doing
business. If your business falls under TPT guidelines,
you must obtain and display a separate license for
each business location. To find out if your business
is subject to Transaction Privilege Tax, visit the website of the Arizona Department of Revenue at http://www.azdor.gov/Business/TransactionPrivilegeTax.aspx.
CLICK THE LINK TO YOUR CITY BELOW TO APPLY FOR A BUSINESS LICENSE
How many licenses do I need while doing business
in a city?
A business owner in Arizona may need to obtain regulatory
licenses (professional/special) in addition to other
licenses/permits. (some examples of such businesses
would include construction contracting, child care
facilities, cosmetologists, or food establishments)
The number of different types of licenses/permits
necessary depends on several factors, including:
1.what type of business you will have (i.e., wholesale
goods, home rentals, medical services, etc.)
2. where your business will be based and operate (i.e.,
is it within city limits, out of your home, in multiple
locations, etc.)
3. what type of product you will sell (i.e., liquor,
food, etc.)
How do I know what category my business falls
under?
If you are unsure of which category your business
falls under, you may wish to visit the Arizona Department
of Revenue – Arizona Licensing Guide, which is available
online. This website is a great tool for finding out
what types of business activities are regulated by
the State and which agency to contact for licensing
information. Business regulations vary by State, local
and Federal Government as well as by Industry.
- There may be government incentives available for your small business. Go to the website of the Arizona Commerce Authority at http://www.azcommerce.com/ to find out more.
How do I obtain a state business license
in Arizona?
You can easily register your business by applying
for your license in Arizona online at www.aztaxes.gov . or download a copy of the application and mail to:
License and Regulations Section, Department of Revenue
1600 W Monroe Pheonix, Arizona 85007
If you register online at www.aztaxes.gov you can have online access to your account information,
file and pay Arizona transaction, use and withholding
taxes. You can also designate users to access these
services! For licensing questions on Transaction Privilege,
withholding or use Tax (Department of Revenue), call
(602) 542-4576 or (800) 634-6494
What information will be asked to obtain
a state business license in Arizona?
Every form is a little different, however on the
Arizona Joint Tax Application you can expect the following
questions:
- Federal Employer Identification Number
Is there a fee to apply?
The fee for your license through the state will vary
depending on the city or cities you are doing business
in. Each individual cities fees will vary. (i.e.,
Cave Creek’s has a fee of $20, where the city of Sedona
is only $2.00). The state fee is $12 x the number
of locations your business is located.
What business licenses are required by my city or
county?
Local licensing may be required by city, town or
county (examples may be alarm businesses, amusements,
liquor, Pet Grooming, Pawnbrokers, etc.). It is important
to check with each incorporated city/town in which
your business will be based to learn of any local
requirements or restrictions they may have. The local
city websites are a helpful tool to use when obtaining
a business license. A business license is also commonly
called a Privilege Sales and Use Tax on the city level.
Most city websites have a link to Business Licensing
as well as useful guides to starting your business..
There are typically two types of licenses through
the cities: Privilege Sales and/or/ Use Tax and the
Regulatory and Liquor license. Each application has
easy instructions, and can usually be filled online
through the cities websites.
Apply for a business license
now by visiting your city's website using the links
above.
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Disclaimer: This site is for informational purposes only and does not constitute legal, financial or tax advise. The information on this site should not be relied upon as an official source of information and should be independently verified. |
