Arizona Business License Requirements for an LLC
2025 LLC Guide
business license requirements for LLCs in Arizona
Learn about the business license requirements for LLCs in Arizona. This guide covers state, county, and city licenses, plus the Transaction Privilege Tax (TPT) license. Ensure your Arizona LLC is compliant!
An Arizona business license authorizes your Limited Liability Company (LLC) to conduct operations in a designated area or within a particular sector.
We are unable to guide you through the specific license applications in a step-by-step manner since each business is distinct. However, we offer valuable resources such as:
- information about state licensing rules
- instructions for researching municipal licenses
If you’re looking to hire a company to handle the research on your behalf, we have a suggestion listed below.
Arizona Business License Requirements
Once you establish an Arizona LLC, you might be required to secure a business license or permit.
The needs of your business are influenced by the sector you operate in and the location of your Arizona Limited Liability Company. This is due to the fact that certain cities and counties impose their own licensing regulations.
Given the vast array of industries and numerous municipalities throughout Arizona, we cannot detail each one. Nevertheless, you can utilize the search tools provided below, reach out to your local municipality, or engage a professional service for assistance.
Looking to save time? We suggest enlisting the help of MyCompanyWorks (for just $99) to take care of your business license research.
How to get a Business License in Arizona
To acquire a business license in Arizona, you must submit an application to the appropriate licensing or regulatory body. The specific agency you’ll need to approach will vary based on your business’s location and the type of activities it conducts.
The application for a business license generally necessitates essential details, including your LLC name, EIN number, business address, and contact information. Additionally, many applications feature a questionnaire that inquires about your business operations.
There are three primary licensing authorities:
- State licensing
- Local licensing (such as county, city, township, etc.)
- Federal licensing
Does Arizona Require a Business License?
The answer varies based on your business’s location and its operations.
There are two types of state-level business licenses:
- a general business license
- and an occupational license
Arizona General Business License
Certain states impose a universal licensing obligation, indicating that every business functioning within their borders is required to obtain this license, irrespective of their activities.
But here’s the great News: Arizona doesn’t mandate a general license for conducting business within the state.
This means that your Arizona LLC is not required to obtain a general state business license. However, depending on the nature of your business, your LLC may need an occupational license (also known as an “industry-specific license”).
Arizona Occupational License
Many states require occupational business licenses. This indicates that depending on your business’s activities or your profession, you may need a specific license or permit. For instance, if you operate a used car dealership or manage a hair salon, obtaining an occupational business license could be necessary. However, certain types of businesses might not need a license at all.
The Business Licensing page of the Arizona Commerce Authority provides guidance on whether your business in Arizona requires an occupational license or permit, along with information on the appropriate agency to reach out to for the application process.
Note: Arizona business licenses are not provided by the Secretary of State. The Secretary of State oversees the administration of business entities, such as the formation of Limited Liability Companies. However, the Secretary of State does not handle licensing for specific professions or geographical areas.
What is the cost of a Business License in Arizona?
Arizona lacks a statewide general business license, resulting in no associated fees.
Nonetheless, your enterprise might require a state-specific occupational license or a local municipal license or permit to function. The application fee for these licenses can differ based on your business location and the industry sector you belong to. Frankly speaking, we cannot forecast the exact cost of your business license in Arizona.
For instance, licenses granted by a county with a major city tend to be pricier than those in sparsely populated, rural areas. Additionally, licenses for regulated sectors, such as child care services, typically cost more than standard business licenses.
However, your LLC may not require any licenses or permits whatsoever. This means that the cost of obtaining a business license in Arizona could potentially be $0.
Explore the LLC Expenses in Arizona to discover all potential fees associated with forming an LLC.
Municipal Business License
Arizona Transaction Privilege Tax (TPT)
The Arizona Transaction Privilege Tax (TPT) is often referred to as a sales tax. However, it is essentially a tax imposed on businesses, representing a fee for the privilege of operating within Arizona. Many businesses typically transfer this tax burden to their customers by slightly increasing their prices, similar to how they handle sales tax.
The TPT is utilized by companies in specific sectors, such as:
- retail sales
- restaurants/bars
- hotel/motel (transient lodging)
- commercial leasing
- advertising
- amusements
- personal property rentals
- real property rentals
- construction contracting
- owner/builders
- manufactured building
- severance (mining, timbering)
- transportation
- printing
- publishing
- communications
- private cars
- use tax
Note: This obligation will be in effect regardless of whether you offer products through an online platform or at a brick-and-mortar store in Arizona.
If your LLC operates in a business category that falls under the TPT, it’s essential to obtain the transaction privilege tax license from the Arizona Department of Revenue.
This permit is occasionally referred to as a sales tax license, resale license, wholesale license, vendor license, or tax registration.
If you’re unsure whether your business activities are liable for TPT, feel free to reach out to the Department of Revenue for additional details.
You can also discover information regarding the Transaction Privilege Tax (TPT) at the following link: Department of Revenue: Transaction Privilege Tax.
Do I require any federal business licenses?
The majority of businesses operating in Arizona are not required to obtain a federal business license. Nevertheless, specific sectors do require federal licenses:
| If your business… | Contact this agency about business licenses |
|---|---|
| Transports animals, plants or biotechnology over state lines | Department of Agriculture |
| Imports or exports animal products, wildlife, or products derived from wildlife (including fish) | Fish and Wildlife Service |
| Fishes commercially | Fish and Wildlife Service |
| Broadcasts on radio or TV | Federal Communications Commission |
| Makes alcohol and sells it at a retail store | Tobacco Tax and Trade Bureau |
| Makes or sells firearms, ammunition or explosives | Bureau of Alcohol Tobacco Firearms and Explosives |
| Transports cargo by sea | Federal Maritime Commission |
| Transports goods or people by air | Federal Aviation Administration |
Explore the Small Business Administration’s Licenses and Permits page to find a comprehensive list of industries that have federal licensing obligations.
If your company doesn’t fall into one of these unique categories, the sole federal obligations are for your LLC to obtain an Arizona EIN Number (also known as Federal Employer Identification Number) and to submit annual tax returns.
Arizona Business License FAQs
What is the cost of obtaining a business license in Arizona?
Arizona does not require a general business license for LLCs, meaning there are no associated fees.
If your business requires an occupational license or a municipal (city or county) permit, estimating the fees can be challenging. The costs fluctuate based on your LLC’s geographical location and the specific type of business or industry you operate in.
You may find that a business license isn’t necessary for you!
Regrettably, we are unable to provide a specific figure for the business license expenses of your LLC, as this is influenced by various factors and the fees for licenses in Arizona can differ.
Is an LLC the same as a business license?
No, an LLC does not equate to a business license. They represent entirely distinct concepts.
An LLC is a business structure formed by submitting a document to the state authorities.
A business license is a document that authorizes an individual or company to conduct business activities. It does not establish an LLC.
Must a Sole Proprietor have a business license in Arizona?
Occasionally, a new entrepreneur decides to run their venture as a Sole Proprietorship in Arizona rather than forming an LLC.
Even if you’re merely testing a business concept as a Sole Proprietorship, you might still need to adhere to licensing regulations at both state and local levels. This largely depends on the nature of your activities and the location in which you plan to run your business.
Does the Arizona Secretary of State issue business licenses?
No, the Arizona Secretary of State is not responsible for licensing requirements. Their role focuses on the formation and registration of business entities. For instance, depending on the type of business entity, owners must submit various documents to the Secretary of State to establish their business entity.
For additional details, or to find out whether there is a cost associated with obtaining an Arizona business license for your venture, it’s best to reach out to the Arizona Department of Revenue or your local government office. For instance, your county or city government can provide insights regarding any local licensing requirements.
What are the steps to establish an LLC in Arizona?
Below are the steps to establish an LLC in Arizona:
- Choose a name for your Arizona LLC
- Choose your Registered Agent
- Submit the Articles of Organization for the LLC to the state.
- Consider placing a notice regarding your LLC in the local newspaper.
- Finalize and sign an LLC Operating Agreement
Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS)
Open an LLC bank account
- Check whether you need a business license or tax permits in Arizona
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