Arizona Secretary of State (entity formation) / Arizona Department of Revenue (transaction privilege tax license) / City/Town for local business licenses
Step by Step
How to do it
Determine your business structure: sole proprietor, LLC, corporation, partnership
Register your business entity with the Arizona Corporation Commission (for LLCs and corporations) at azcc.gov - NOT the Secretary of State; Arizona uses the Corporation Commission for entity filings
Obtain an Arizona Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue at azdor.gov - required for businesses that sell taxable goods or services in Arizona; this is Arizona's equivalent of a sales tax permit; $12 fee
Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if you have employees, form an LLC/corporation, or have a partnership
Check with your city or town for a local business license - most Arizona cities and towns require a separate local business license (e.g., Phoenix, Tucson, Mesa, Scottsdale all require local licenses)
Check for industry-specific professional licenses: contractors require ROC (Registrar of Contractors) license; health professionals, real estate agents, cosmetologists, and others require state professional licenses
Renew your TPT license annually and local business license per your city's schedule
Details
What you need to know
Required Docs
Business name and type of business activity
Business address
Entity formation documents if LLC or corporation (from Arizona Corporation Commission)
EIN or Social Security number
Industry-specific certifications if applicable
Fee
TPT (Transaction Privilege Tax) license: $12; local business license fees vary by city/town (typically $50-$200+ depending on business type and revenue); professional license fees vary
RENEWAL: TPT license and most local licenses renew annually
ONLINE OPTION: Yes - azdor.gov for TPT license; azcc.gov for entity formation; most cities have online licensing portals
WHERE TO GO: Arizona Corporation Commission (azcc.gov) for entity formation; Arizona Department of Revenue (azdor.gov) for TPT license; City/Town Clerk or License Department for local business license
Online Option
Yes - azdor.gov for TPT license; azcc.gov for entity formation; most cities have online licensing portals
Where to Go
Arizona Corporation Commission (azcc.gov) for entity formation; Arizona Department of Revenue (azdor.gov) for TPT license; City/Town Clerk or License Department for local business license
County-specific variations apply
Arizona does NOT have a county-level business license requirement (unlike Alabama). Business licensing is primarily state (TPT) and city/town level. If your business is in an unincorporated county area, you may not need a local business license but still need the state TPT license. Verify with your specific city or town - requirements vary significantly between Phoenix, Tucson, Scottsdale, Mesa, Tempe, and smaller municipalities.
Arizona Notes
Important state-specific details
Arizona does NOT have a general county-level business license - unlike many states, Arizona business licensing is state (TPT) + city/town level.
The Transaction Privilege Tax (TPT) license is Arizona's key business registration - it covers the state's gross receipts tax on businesses selling taxable goods/services.
Arizona Corporation Commission (azcc.gov) handles LLC and corporation filings - NOT the Secretary of State.
Registrar of Contractors (ROC): all contractors working in Arizona must be licensed through the ROC at azroc.gov.
Arizona has a state income tax; businesses pay Arizona corporate income tax or pass-through income to individual returns.
Arizona has no county sales tax in most counties - the TPT is collected at the state and city level.
Official Source
State office contact
State Office
Arizona Department of Revenue (TPT license) - azdor.gov | (602) 255-3381; Arizona Corporation Commission - azcc.gov | (602) 542-3135