A business license is a government-issued permit that allows a company to conduct business in a certain area. They can be issued by governments at all levels, including the federal, state, and local. For various industries and localities, multiple sorts of licenses are frequently necessary.
In Arizona, not all businesses require a license, and some may require multiple licenses. It is dependent on the type of commercial activity you plan to conduct with your new venture. You may need to apply for business licenses from both the state of Arizona and the county or city in which your business is located.
How to obtain a business license in AZ?
By submitting an application to the appropriate licensing or regulating agency for your business, you can obtain a business license online, in person, or by mail.
The type of license you’ll need depends on your business’s activity and location (zoning requirements).
The following are the three main licensing authorities:
The transaction privilege tax (TPT) license is Arizona’s most important state-level authorization or license. In certain states, this is referred to as a seller’s permission.
Are you a businessperson in Arizona?
Do you intend to sell a TPT-eligible product or provide a TPT-eligible service?
If yes, you must have a TPT license!
To receive a TPT license, go to the Department of Revenue.
A professional license or permission is required for certain sorts of enterprises. Things like selling alcohol, home inspection, and child care fall into this category. For further information, go to the Arizona Commerce Authority’s company licensing page.
Tax Registration in Arizona
If you wish to create a small business in Arizona, you’ll need to register for one or more service-related taxes. While most businesses must pay certain taxes, such as income tax withholding, other taxes are exclusively relevant to specific services.
The tobacco luxury tax, on the other hand, must be paid by businesses that wholesale tobacco products such as cigarettes and cigars. The liquor luxury tax will be imposed on state liquor wholesalers, such as microbreweries and local farm wineries.
For a more extensive list of prospective taxes, go to the Arizona Department of Revenue’s website. The site’s newsletter archives also provide updates and changes in local tax regulations.
How can I determine which category my company belongs to?
This website is a great place to start figuring out which types of business operations are regulated by the state and which agency to contact for license information.
State, local, and federal government rules, as well as industry restrictions, differ.
Federal – You may be needed to obtain a federal license if your company engages in activities that are controlled and regulated by the federal government. For additional information, go to https://www.sba.gov/content/search-business-licenses-and-permits/.
Permits from the local government
Your local authority, such as your city or county government, may demand special permits and licenses. Every municipality may have its own set of rules. The following are some of the most typical licenses and permissions that you may need:
- Alarm Permit
- Business License and/or Tax Permit
- Health Permit.
Requirements for Insurance
If your Arizona-based firm requires employees, you will be responsible for additional taxes, such as unemployment and workers’ compensation taxes.
The workers’ compensation tax covers employees who have been injured at work or who have work-related sickness. More information is available on the Arizona Industrial Commission’s website.
Unemployment insurance is a fee that assists unemployed people who are looking for work. Visit the Arizona Department of Economic Security for further information. On the site, there is an employee handbook that explains the conditions for unemployment insurance taxes.
What is the cost of an Arizona business license?
A transaction privilege tax license in Arizona costs $12 for each location. The cost of additional licenses varies.
Is it necessary for me to renew my business license in Arizona?
The TPT license in Arizona is valid for a year, and it expires on December 31. By January 1st, the license must be renewed. There is no charge for renewal. Other licenses have different renewal requirements.
What information will be required to obtain an Arizona state business license?
Every form is a little different, but you can expect the following questions on the Arizona Joint Tax Application:
- Business name;
- Address and TPT information;
- Information about the taxpayer;
- Type of license;
- Business start date;
- Sales start date;
- Employer Identification Number (FEIN);
What steps do I need to take to obtain a state business license?
Simply apply for a license online at www.aztaxes.gov, or download a copy of the application and submit it to the Department of Revenue, License and Regulations Section, 1600 W Monroe Phoenix, Arizona 85007.
If you register at www.aztaxes.gov, you can obtain online access to your account information as well as check-in and pay Arizona transaction, use, and withholding taxes. You can also grant access to these services to certain individuals.