How to Start a Business in Arizona (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

To start a business in Arizona, you must choose a legal structure, register your entity with the Arizona Corporation Commission (ACC) if required, obtain an Employer Identification Number (EIN) from the IRS, and secure any necessary state and local licenses, such as a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue (ADOR). Arizona does not have a single, general state-level business license.

Steps to Start a Business in Arizona

Starting a business in Arizona involves several key steps, from choosing your legal structure to complying with state and federal tax obligations. The specific requirements depend on the type of business you plan to operate and its legal structure. This guide outlines the general process; for a national overview, see how to start a business.

1. Choose a Business Structure: Decide on the legal form your business will take. Common structures include sole proprietorship, general partnership, limited liability company (LLC), or corporation. This choice affects liability, taxation, and administrative requirements. For example, an LLC offers personal liability protection, while a sole proprietorship is simpler to set up.
2. Name Your Business: Select a unique and appropriate name for your business. If you are forming an LLC or corporation, the name must be distinguishable from other entities already registered with the Arizona Corporation Commission (ACC). You can check name availability through the ACC's online portal. Consider also checking for federal trademark availability.
3. Register Your Business Entity (if applicable):
   • Sole Proprietorships and General Partnerships: These structures generally do not require formal registration with the ACC. However, if you operate under a name different from your personal legal name, you may need to file a Doing Business As (DBA) name with the Arizona Secretary of State.
   • LLCs and Corporations: You must file formation documents with the ACC. For an LLC, this is the Articles of Organization. For a corporation, it's the Articles of Incorporation. These filings establish your business as a legal entity in Arizona.
4. Appoint a Statutory Agent: All LLCs and corporations in Arizona must designate a statutory agent (also known as a registered agent). This agent is responsible for receiving legal documents and official correspondence on behalf of your business. The statutory agent must have a physical street address in Arizona.
5. Obtain an Employer Identification Number (EIN): Most businesses will need an EIN from the IRS. This nine-digit number is like a social security number for your business and is required if you have employees, operate as a corporation or partnership, or file certain tax returns. You can apply for an EIN for free directly from the IRS.
6. Register for Arizona Taxes and Licenses:
   • Transaction Privilege Tax (TPT) License: If your business sells goods or provides certain services in Arizona, you will likely need a TPT license (often referred to as a sales tax license) from the Arizona Department of Revenue (ADOR). This is a tax on the privilege of doing business in Arizona, and it is passed on to the customer.
   • Other State Licenses: Certain professions and industries are regulated at the state level and require specific licenses or permits. Examples include contractors, real estate agents, and healthcare professionals. Check with the relevant state boards or agencies.
   • Local Licenses and Permits: Many cities and counties in Arizona have their own business licensing requirements, zoning ordinances, and permits. Contact your local city or county clerk's office to determine what is needed for your specific business location and activity.
7. Comply with Employment Laws (if hiring): If you plan to hire employees, you must comply with state and federal employment laws, including registering with the Arizona Department of Economic Security for unemployment insurance and workers' compensation.
8. Open a Business Bank Account: It is crucial to keep your personal and business finances separate. Open a dedicated business bank account once your entity is formed and you have an EIN.

Registering Your Business Entity with the ACC

If you choose to form a formal business entity such as an LLC, corporation, or limited partnership, you must register it with the Arizona Corporation Commission (ACC). The ACC is the state agency responsible for chartering and regulating these entities. The filing process can typically be completed online through the ACC's eCorp system or by mail.

For an Arizona LLC, you file Articles of Organization. The filing fee is $50 for online submissions or $60 for paper filings (2026). This fee is paid to the ACC. After filing, the ACC will review your documents. If approved, your LLC is legally formed. You will also need to publish a notice of the filing in an approved newspaper in the county of your statutory agent, unless your statutory agent is in Maricopa or Pima County.

For corporations, the process is similar, involving the filing of Articles of Incorporation and payment of a fee. The ACC also handles the registration of foreign entities (businesses formed outside Arizona that wish to operate within the state).

Arizona Statutory Agent Requirement

Every LLC and corporation formed or registered to do business in Arizona must continuously maintain a statutory agent. The statutory agent is the official point of contact for your business, responsible for receiving service of process (legal notices), official government correspondence, and other important documents. The Arizona Revised Statutes define the requirements for a statutory agent.

The statutory agent must be an individual resident of Arizona, a domestic corporation, a domestic LLC, or a foreign corporation or LLC authorized to transact business in Arizona. The agent must have a physical street address in Arizona, which serves as the statutory agent's business office. A post office box alone is not sufficient. You can serve as your own statutory agent, appoint another individual, or hire a commercial registered agent service. The name and address of your initial statutory agent are included in your formation documents (e.g., Articles of Organization for an LLC). If you need to change your statutory agent, you must file a Statement of Change of Statutory Agent with the ACC.

Arizona Business Filing Fees (2026)

The following table outlines common fees associated with starting and maintaining a business entity in Arizona. These fees are set by the state and are current for 2026. Always verify the latest fee schedule on the respective agency's website before filing.

Note that the TPT license fee includes a state portion and may include additional fees depending on the city or cities where you conduct business. Publication fees for LLCs and corporations are separate and paid directly to the newspaper.

Arizona Taxes and Business Licenses

Arizona does not have a single, overarching state business license. Instead, businesses must comply with various tax and licensing requirements depending on their activities and location.

• Transaction Privilege Tax (TPT) License: This is the most common state-level license required for businesses in Arizona. If you sell goods or engage in certain service activities, you must obtain a TPT license from the Arizona Department of Revenue (ADOR). The TPT is a tax on the vendor for the privilege of doing business in Arizona, though it is typically passed on to the consumer. The state TPT license fee is $12, and many cities also impose their own TPT, requiring additional city-specific licenses and fees.
• Income Tax: Arizona imposes a state income tax on individuals and corporations. Businesses structured as sole proprietorships or partnerships typically pass their profits through to the owners, who then pay individual income tax. LLCs can be taxed as sole proprietorships, partnerships, or corporations. Corporations pay corporate income tax.
• Unemployment Insurance: If you have employees, you must register with the Arizona Department of Economic Security (DES) for unemployment insurance tax.
• Withholding Tax: Employers must also withhold Arizona income tax from employee wages and remit it to ADOR.
• Professional and Occupational Licenses: Many professions require specific licenses from state boards or agencies. Examples include accountants, lawyers, doctors, contractors, and cosmetologists.
• Local Licenses and Permits: Cities and counties often have their own business license requirements, zoning permits, health permits, and fire safety inspections. It is essential to check with the specific municipality where your business will operate.

For more information on state taxes, visit the Arizona Department of Revenue website. For general information on business licenses, see our national guide on business licenses.

Annual Requirements and Compliance

Once your business is established, ongoing compliance is crucial to maintain its good standing. For LLCs and corporations registered with the ACC, annual reports are required. While the online filing of the annual report itself has no state fee, there is a fee for paper filings ($50 for LLCs, $45 for corporations). These reports update the ACC with current information about your business, such as your statutory agent and principal address.

Failure to file annual reports or maintain a statutory agent can lead to administrative dissolution or revocation of your business entity by the ACC, which can result in loss of liability protection and other penalties. Additionally, businesses with a TPT license must file regular (monthly, quarterly, or annually) TPT returns with ADOR, even if no sales were made. Federal tax filings, such as income tax returns and payroll tax forms, are also ongoing obligations.

Closing Your Arizona Business

If you decide to close your Arizona business, it's important to do so properly to avoid ongoing liabilities and penalties. The process typically involves:

1. Winding Up Affairs: Paying off debts, liquidating assets, and distributing remaining funds to owners.
2. Tax Clearance: Ensuring all state and federal tax obligations are met and obtaining any necessary tax clearances from ADOR.
3. Filing Dissolution Documents: Filing Articles of Termination (for LLCs) or Articles of Dissolution (for corporations) with the Arizona Corporation Commission. This formally ends the legal existence of your entity.
4. Canceling Licenses and Permits: Notifying ADOR to cancel your TPT license and canceling any other state or local licenses.

Simply abandoning a business can lead to continued tax liabilities, penalties, and potential personal liability for owners. For detailed guidance on closing an LLC, see how to dissolve an LLC.

Frequently Asked Questions

What is the first step to start a business in Arizona?

The first step is to choose a legal structure for your business, such as a sole proprietorship, partnership, LLC, or corporation. This decision impacts liability, taxation, and administrative requirements.

Do I need to register my business with the Arizona Corporation Commission (ACC)?

You must register with the ACC if you form a formal business entity like an LLC, corporation, or limited partnership. Sole proprietorships and general partnerships generally do not register with the ACC.

What is a statutory agent in Arizona?

A statutory agent (also known as a registered agent) is an individual or entity designated to receive legal documents and official correspondence on behalf of your business. Every LLC and corporation in Arizona must maintain a statutory agent with a physical street address in Arizona.

Does Arizona require a state business license?

Arizona does not have a single, general state-level business license. However, many businesses need a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue (ADOR) if they sell goods or certain services. Specific professions and local jurisdictions may also require licenses.

How much does it cost to start an LLC in Arizona?

The filing fee for Articles of Organization with the Arizona Corporation Commission (ACC) is $50 for online filings or $60 for paper filings. There are additional fees for publishing requirements and annual reports.

Is an EIN required for all Arizona businesses?

An Employer Identification Number (EIN) is required for businesses that have employees, operate as a corporation or partnership, or file certain excise tax returns. Most multi-member LLCs and all corporations need an EIN, which is free from the IRS.

Related

• How to Start a Business (cluster hub)
• Arizona Articles of Organization
• Arizona Statutory Agent
• How to get an EIN
• Business Licenses: A National Guide
• What is a DBA?
• How to Start a Business in California (sibling)

Sources

1. Arizona Corporation Commission - Start a Business in Arizona (overview of steps).
2. Arizona Corporation Commission - Corporations Filing Fees (LLC and corporation filing fees).
3. Arizona Corporation Commission - Registered Agent Information (statutory agent requirements).
4. Arizona Corporation Commission - eCorp Online Services (online filing system).
5. Arizona Department of Revenue - Transaction Privilege Tax (TPT) (explanation of TPT).
6. Arizona Department of Revenue - Apply for a TPT License (TPT application process and fees).
7. Arizona Department of Revenue - Arizona Income Tax Forms (state income tax information).
8. Arizona Revised Statutes - Title 10, Chapter 2, Article 2, Section 10-202 (Registered Agent and Registered Office for Corporations).
9. Arizona Revised Statutes - Title 29, Chapter 3, Article 2, Section 29-3201 (Statutory Agent for LLCs).
10. Arizona Revised Statutes - Title 29, Chapter 3, Article 2, Section 29-3202 (Change of Statutory Agent).
11. Arizona Revised Statutes - Title 29, Chapter 3, Article 2, Section 29-3203 (Resignation of Statutory Agent).
12. Arizona Revised Statutes - Title 29, Chapter 3, Article 2, Section 29-3204 (Service on LLC).
13. IRS - Limited Liability Company (LLC) (federal tax classification).
14. IRS - Get an Employer Identification Number (EIN) (free EIN application).
15. Arizona Secretary of State - Trade Names (DBA registration).
16. Arizona Department of Economic Security - Unemployment Insurance for Employers.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Arizona Corporation Commission, Arizona Department of Revenue, and other relevant agencies before acting.