Business in Arizona
Why might Arizona be a good place to do business?
Arizona has business-friendly tax and economic laws that can help businesses get started and thrive.
What are common business structures?
- Sole proprietorship
- Partnership, Limited Liability Partnership, and Limited Partnership
- Limited Liability Company (LLC)
- Corporations (C-Corp, S-Corp, B-Corp, Close Corp, Non-Profit Corp, Cooperative)
What name can I use for my business?
Before selecting a business name, search the Arizona Corporate Commission database to make sure the name is available. Certain rules apply to what names can be used.
Do I need to register with the State?
Depending what on entity you form, you may need to register with the Arizona Secretary of State or Arizona Corporation Commission.
What is an EIN?
An Employer Identification Number (“EIN”) is used to identify your business for tax purposes. Many times, banks will require a business to have an EIN in order to open an account. The EIN may also be required for opening and administering certain matters like an unemployment account with the state.
Licenses & Permits
Although Arizona does not require a general business license, your business may be required to have other licenses in place. For example, you may need a State Transaction Privilege (Sales) Tax (TPT) License, local licenses or permits issued by the city or county, or regulatory or special licenses, which are required for certain professions.
Insurance
Arizona mandates that employers with one employee (part or full time) must have workers’ compensation insurance for their employees. Depending on your business, you may have other insurance requirements. Even if not mandatory, insurance is often a cost-effective way to protect your business against common liabilities. Talk to an insurance agent early in the business development process in order to identify policies to support and protect your business.