How to Start a Business in Arizona?

Do You want to start a business in Arizona? It’s a simple process. Don’t let the craziness of 2020 stop you! Here’s a quick guide to Start a Business right now.

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What is Your business?

The first thing you want to do is determine your business identity. You should be able to answer the following questions prior to investing any money into idea:

Will you offer products or services?

What is your brand?

Who is your target audience?

What’s the bare minimum necessary to run the business? What’s ideal?

How will you accept payment?

What are your short term and long term goals for the business?

If you plan to run your business online, you need to determine what platform will host your website. (ie. WordPress, Shopify, Wix) You also need to pick an available domain name, or URL, for the site.

What legal entity will your business classify as?

The next thing to do is determine what type of business entity you will be, for tax purposes. Sole Proprietor, Limited Liability Company (LLC), Partnership, Corporation or S Corporation are the options you have to choose from. Each entity option has its own application process, stipulations, and tax cons and pros. Read more about these options here. You will be working heavily with the Arizona Corporation Commission (ACC) throughout this process, familiarize yourself.

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We highly recommend consulting with legal professionals to help with the process if applicable. Check out Arizona Commerce Authority Small Business Services, they are a great resource for taxes and licensing in the state.

If you find that filing Articles of Organization or Articles of Incorporation is necessary, you can find the forms and filing options here.

You might need a Transaction Privilege Tax (TPT) License…

Depending on the nature of your business you might need a TPT license, in the state of Arizona. You should direct any questions regarding tax privilege licenses to the Arizona Department of Revenue (ADOR).

Determine if any further licensing is needed to conduct business.

You will need an EIN.

An EIN is an employer identification number, it will act as the social security number for your business. You apply for an EIN with the Internal Revenue Service (IRS).

Open A Bank Account.

It is wise to open a business bank account for all of your business transactions. You should keep business finances and personal finances separate for tax purposes. Business bank accounts allow for business perks, but they also tend to come with more fees. Allow yourself to compare bank options and their features.

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Obtain your first customer.

A business cannot be a business without having customers to support them. You should have two main goals in mind when it comes to customers and your business; you want to attract loyal customers that spend money and you want to keep loyal customers.

If you build it, they will NOT come… unless you market yourself.


The process to start a business in Arizona is simple, but not easy. Don’t confuse the two. There are only a few steps that need to be completed prior to operating your own business. However, the steps require following and understanding applicable laws, filing out some paperwork and waiting for approval on items. Allow yourself time to fully commit to the process of completing the requirements needed to run a business in AZ.

2 responses to “How to Start a Business in Arizona?”

  1. […] with any business that is opened in Arizona, there are certain steps you need to follow. You will need to register with the state as a business entity. Then, obtain an EIN and TPT. The […]

  2. […] Did you know in the state of Arizona, a person does not need a cosmetology license in order to shampoo, blow dry, or braid hair professionally? If you know how to braid or are willing to learn, you can start a braiding business in Phoenix as soon as today. We have an article on some other things you might need when you’re starting a business locally, you can find it here. […]

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