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.
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.
- State information can be found at the Arizona Department of Revenue by visiting their website at http://www.azdor.gov/Business/LicensingGuide.aspx.
- Federal- If your business is involved with activities supervised and regulated by federal government you may need a federal license. You may find out more information by visitinghttp://www.sba.gov/content/search-business-licenses-and-permits.
- 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:
- Taxpayer information
- License type
- Federal Employer Identification Number
- Name of Business
- TPT information
- Date business started
- Date sales began
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.
CLICK THE LINK TO YOUR CITY BELOW TO APPLY FOR A BUSINESS LICENSE