10 Steps to Start a Business in Arizona

Starting a business is different in every state. In this article, we will hone in on the 10 steps to start a business in Arizona.

1. Choose a Name

The first step in starting a business is to choose a name. You will want to come up with one that is original and not currently in use.

2. Check Name Availability with the ACC

You cannot name your business something that is already in use in Arizona. To check if your name is available, you can do a search at ecorp.azcc.gov.

3. Secure Your Name

Once you find out if your name is available, you can reserve it on the Corporation Commission’s website. This reservation is only good for 120 days and then it will expire.

4. Purchase a Domain Name

Once you land on a name you should purchase a corresponding domain name so you can have a website that is easy to find.

5. Choose an Entity Type

There are several different entity types you can choose from. These include Limited Liability Company, Corporation, and Non-profit. A Limited Liability Company is a type of entity that is owned by members. Any assets placed into the LLC are considered separated from the members. It also protects the members’ personal assets from business liabilities. A Corporation provides the same type of protections, but its members are called shareholders. Lastly, a Non-profit is an entity set up to transact charitable purposes. It is important to note that S-Corporation, C-Corporation, and 510(c)(3) are IRS tax designations and are not applicable on the state level.

6. File Your Formation Application

If you are looking to set up an LLC, in Arizona, you will file Articles of Organization. For setting up a corporation you would file Articles of Incorporation. This can be done for you by a legal document preparer, or you can do it on ecorp.azcc.gov. Staff at the Corporation Commission will review your application and then issue an approval letter. If there are issues with the application, you will receive a rejection letter with instructions on how to resubmit.

7. Sales Tax

Depending on the type of business you operate you may need to file for transaction tax privilege, or sales tax. This is done through the Arizona Department of Revenue.

8. City or County Business Licensing

You will need to register your business entity in the city you are transacting business. Or if you are in an unincorporated area, you will register with the county. You also may be subject to additional business and occupational licenses.

9. Employer Identification Number

An employer identification number, or EIN, is like a social security number for a business. You will use it as an identifying number for your business, especially when filing taxes.

10. Business Bank Account

Before you open your business bank account, your LLC must be approved and you must have an EIN. It is important to keep your business finances separated from your personal finances for liability purposes.

Setting Up a Business in Arizona

Following these 10 steps to start a business in Arizona can make the process easier and make sure you do not forget anything.

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