Comprehensive Guide to Obtaining an Arizona Business License

Obtaining an Arizona business license is a crucial step for any entrepreneur looking to operate legally within the state. While Arizona doesn’t mandate a statewide business license, individual cities and counties have their own licensing requirements that vary based on location and business type. If you're planning to start a business in the state, it's important to understand and follow these local guidelines to ensure proper registration.

This guide will explain the process of getting a business license in Arizona, including the specific steps you need to follow. You'll also learn how Harbor Compliance can help you manage these tasks efficiently, helping you stay on top of obligations during every phase of your business journey.

Arizona General Business Licenses

Do You Need a Business License in Arizona?

There is no general statewide business license in Arizona that entities are required to obtain. However, businesses operating in Arizona must possess local business licenses or specific permits, depending on the nature of the business and its location.

Licensing is managed by local authorities at the city or county level. Whether you need a license depends on where your business is located and what activities it conducts.

For example, Phoenix requires most businesses to have a city-issued license, while Pima County does not issue general business licenses, but you must ensure your chosen location meets local zoning codes. Additional permits may be required for certain activities, such as food service or industrial operations.

Types of Business Licenses in Arizona

Arizona businesses need different types of licenses based on their activities and industry. Below are the two most common types:

1. Transaction privilege (sales) tax (TPT) license—This tax is imposed on businesses for the privilege of operating within the state. It is similar to a sales tax but applies to the business itself. All businesses must register with both the Arizona Department of Revenue (ADOR) and the Arizona Department of Economic Security (DES) by completing the Joint Tax Application (Form JT-1/UC-001). Note that individuals under the age of 19 who operate a business making less than $10,000 annually are exempt from the TPT requirement (effective September 14, 2024).
2. Local business licenses—Most cities and counties in Arizona require businesses to obtain local licenses. These licenses typically cover permits related to public safety or zoning.

How To Get a Business License in Arizona

The process of obtaining a business license in Arizona differs based on the license type and jurisdiction, but it typically involves the following steps:

1. Form your business
2. Register your business name
3. Obtain an Employer Identification Number (EIN)
4. Apply for the Joint Tax Application
5. Apply for local, state, and federal licenses and permits

Form Your Business

Choosing the appropriate business structure is the first critical step in obtaining your Arizona business license. The structure you select will affect your taxes, legal liability, and operational responsibilities. Common business structures include:

• Corporations
• Sole proprietorships
• Limited liability companies (LLCs)

Register Your Business Name

After choosing an appropriate structure, ensure your business name is properly registered, especially if you're operating under a name different from your legal one. Sole proprietors and partnerships can register their trade name with the Arizona secretary of state, while LLCs and corporations complete the registration process through the Arizona Corporation Commission.

To register your business name, follow these steps:

1. Search for name availability using the Arizona secretary of state's or Arizona Corporation Commission's online tool.
2. Complete the registration online or by mail, providing the required documentation and fees.
3. Consider trademarking your business name for additional protection, especially if you plan to expand outside of Arizona. Note that you can do this through the secretary of state, regardless of your entity’s type.

If your business name is already registered in another state, you may need to file for a Certificate of Authority to ensure it is legally recognized within the state.

Obtain an Employer Identification Number (EIN)

Most businesses are required to obtain an Employer Identification Number (EIN), especially LLCs, corporations, and those hiring employees. The number is issued by the IRS and functions as a federal tax ID for your business.

To apply for an EIN, follow these steps:

1. Visit the IRS EIN application page online at the IRS website.
2. Complete the online application using the EIN Assistant, available Monday to Friday from 7 a.m. to 10 p.m. EST.
3. Submit your application after providing the necessary information, including your business structure, legal name, and address.
4. Download your EIN after completing the online application.

If you prefer, you can apply via mail or fax by downloading and submitting Form SS-4, although processing may take up to four weeks.

Apply for the Arizona Joint Tax Application (for a TPT License)

To apply for a TPT license, follow these steps:

1. Start your application on the Arizona Department of Revenue website—Create an account or log in if you already have one.
2. Fill out the Arizona Joint Tax Application (JT-1)—The form is available online or for download and covers the TPT, use tax, and unemployment insurance registration.
3. Select licensing options—Choose between one license for all business locations or individual licenses for each location, based on your needs.
4. Complete the application—Submit the form online, by mail, or in person at one of the Arizona Department of Revenue offices located in Phoenix, Mesa, or Tucson.

For online applications, the TPT license number is issued immediately. If you apply in person, you can receive it on the same day.

Once registered, you will need to file periodic TPT returns based on your business activities through the Arizona Department of Revenue website.

Apply for Local, State, and Federal Licenses and Permits

After registering your business and obtaining the necessary identification and tax documents, you may need to secure additional local, state, or federal licenses based on your business type and location:

• Local licenses—Many municipalities in Arizona have specific licensing requirements for businesses operating within their jurisdiction. Check with your local city or county office to find out if a local business license or permit is necessary.
• State permits—Depending on the industry, some businesses require additional permits issued by the state agencies in Arizona. These can include industry-specific requirements, such as occupational licenses or environmental permits.
• Federal permits—Certain federal licenses or permits may be required for businesses engaged in regulated activities at the federal level. These could include regulations for industries like telecommunications, transportation, or food production.

Given the varying local requirements across Arizona's cities and counties, managing the licensing process yourself can be complex and time-consuming, especially when coordinating between multiple agencies and deadlines. To simplify the process, consider partnering with Harbor Compliance. Our team of experts can help with each step, ensuring all documents are submitted accurately and efficiently, allowing you to focus on growing your business without the burden of paperwork.

Comprehensive Business Licensing Service by Harbor Compliance

Harbor Compliance’s Managed Annual License Service is designed to simplify the process of securing and maintaining business licenses for companies operating in Arizona. We ensure that your business is properly licensed and remains in good standing with all state and local authorities, so you can focus on growing your business without worrying about administrative filings.

Here’s what you get with Harbor Compliance:

• Tailored guidance—Our specialists provide personalized assistance to determine the specific licenses and permits required for your business, ensuring that you meet all Arizona regulations based on your industry and location.
• Filing and renewal management—From the initial application to ongoing renewals, we handle the preparation and submission of all necessary documents. We track every deadline to ensure your licenses are renewed on time, helping your business avoid unnecessary interruptions.
• Real-time access with License Manager—Our License Manager (included in our Software Suite) centralizes your business’s licensing information, including renewal dates, registration statuses, and related documents, offering a streamlined way to stay informed without manual tracking.

We also offer related services to support your business, such as EIN registration and payroll tax setup, to ensure all tax requirements are handled seamlessly alongside your licensing needs.

How To Partner With Harbor Compliance for Business License Services

To order our Managed Annual License Service, all you need to do is complete four easy steps:

1. Visit the Business License Service page.
2. Click on the Order Online tab.
3. Fill out the required form with your business details.
4. Click Check Out to complete your order.

Once your order is confirmed, we will begin processing your filings and provide updates on the progress, ensuring everything is handled seamlessly.

Additional Services Offered by Harbor Compliance

Beyond assisting with securing your Arizona business license, Harbor Compliance offers additional services designed to help you meet various statutory requirements and support your business throughout its lifecycle. Refer to the table below for more of our popular solutions:

Arizona Business Licenses FAQs

Below, you'll find frequently asked questions about the Arizona business license. If you can't find what you're looking for, visit our extensive Information Center.

Engage With Harbor Compliance for Efficient Business Licensing Support

Managing an Arizona business license involves coordinating between multiple local authorities, staying on top of application processes, and tracking renewal dates, which can become overwhelming for any business owner. Order our Comprehensive Managed Annual License Service, and we’ll take on these responsibilities, ensuring your business is fully licensed and in good standing.

If you'd like to assess your business standing in the state, check out your Harbor Compliance Score™. Should you identify any gaps in licensing, you have several options:

• Contact our team to discuss tailored services that can address your specific needs
• Request a demo of our software to see how it simplifies business licensing management

For more information on our licensing service across different U.S. states and territories, refer to the table below: