Nine Steps to register a Business in Arizona
- Choose your business name.
- Choose your entity type.
- Check name availability.
- Secure your name or form your entity (business).
- Purchase your domain.
- File your formation documentation.
- Apply for transaction privilege tax (if applicable).
- Register your business with the city the business is located in.
- Obtain an EIN or TIN from the IRS.
IMPORTANT – The following steps are just a suggested order of things you might need to do to start a business in Arizona. Your specific business, tax, or legal requirements might mean you need to do things differently. This information is just an overview and isn’t meant to provide legal or tax advice or to be a complete guide. We recommend talking to experts like an accountant or attorney to figure out what your business specifically needs.
STEP 1
CHOOSE A NAME
Sometimes this can be the hardest part! A lot of names will already be taken and the names left aren’t always that sexy. What we like to do is make a list of a bunch of possibilities and do a process of elimination from there based on what business names and domains are available.
You may even want to start by searching by domain name since established businesses will likely have a domain as well and then you don’t have to experience the gut check when the perfect name that you registered is already taken online. (Been there!)
!CAUTION! Be careful where you search for a domain name. It is not uncommon for certain popular web hosting companies to buy a website name from underneath you as you search for it and try to sell it back to you for $100’s or even $1000’s more saying the domain is available through a broker. You shouldn’t be paying more than $30/year for most domain extensions (.com, .net, .org). Keep that in mind as you search.
If you’re looking for a safe place to search, we like to use NameCheap for our domain searches. They’re also our favorite when it comes to purchasing a domain because they have extremely competitive prices and FREE domain privacy for life – most companies charge $12+ for privacy on top of the annual domain registration fee.
Finally, when naming your business it’s always a good idea to be clear rather than clever. If you’re a plumbing business, make sure you’ve got “plumbing” in your business name. I promise, Dap Plumbing is going to get you farther than Water Bros. This is one tip I hear a lot of businesses wish they had known sooner because it makes such a big impact on how easy your business is to find through search engines.
STEP 2
CHOOSE YOUR ENTITY TYPE
Choose a type of business entity, like a corporation, nonprofit corporation, or limited liability company (LLC).
Note that “S” corp, “C” corp, and “501c3” are just federal tax classifications—in Arizona, you simply form a corporation or nonprofit corporation. For advice on taxes, talk to an accountant, and for advice on liability, taxes, and other issues, consult an attorney.
STEP 3
CHECK NAME AVAILABILITY
Look up the business name on the Arizona Corporation Commission website to see if it’s available. To do this go to https://ecorp.azcc.gov/EntitySearch/Index and use the “Name Availability Check” feature.
STEP 4
SELECT YOUR NAME OR FORM YOUR ENTITY
If the business name is available you have three choices:
- You can reserve the name on the Arizona Corporate Commission website.
- You can register the name as a trade name on the Secretary of State’s website at https://azsos.gov/.
- You can submit your formation documents online at https://ecorp.azcc.gov/. You can also send them by fax or mail.
A name reservation through the A.C.C. lasts for 120 days. This gives you time to submit the paperwork to officially form your business.
A trade name, which is registered through the Secretary of State, is valid for 5 years. There are legal reasons why you might want a registered trade name, and it’s a good idea to consult with an attorney to decide if you need one.
If you have a registered trade name, you don’t also need a name reservation. The trade name protects your business name, allowing you to form a business under that name as long as you own the trade name.
STEP 5
PURCHASE YOUR DOMAIN
If you plan to have a website with the same name as your business, now is a good time to secure your domain. A domain, or web address, is something you typically pay for annually. It’s worth noting, your domain name is just one part of several website fees – websites will also have recurring fees for hosting, maintenance, and software. Check out our “5 Essential Tips for Buying a Web Address [Domain] for your Business” article to learn how to avoid buying a spam web address and best practices to protect your business from domain-related scams.
STEP 6
FILE YOUR FORMATION DOCUMENTATION
Submit your formation documentation to the Arizona Corporation Commission. The fastest turnaround will be on their site at https://ecorp.azcc.gov.
- If you’re forming an LLC, you’ll need to submit Articles of Organization.
- If you’re forming a corporation, you’ll need to submit Articles of Incorporation.
*All of the forms and filing options are available on the ACC’s website.
Once submitted, your documents will be reviewed. If approved, you’ll receive an approval letter with more instructions. If they are not approved you’ll get a letter explaining how to fix and resubmit your documents. Wait for approval before continuing to the next steps.
STEP 7
APPLY FOR TRANSACTION PRIVILEGE TAX
Arizona Transaction Privilege Tax (TPT) is often referred to as a sales tax, but it’s actually closer to a tax on the right to operate a business in the state. An example of a few businesses that are required to pay TPT include retail sales, restaurants/bars, hotels, personal property rentals, construction contracting.
If you’re unsure whether your business is subject to the TPT, you can reach out to the Department of Revenue for clarification.
You can also find more information about the Transaction Privilege Tax (TPT) here: https://azdor.gov/business/transaction-privilege-tax
It’s important to note the requirement for TPT applies to in person AND online transactions.
STEP 8
CITY OR COUNTY TAXES AND BUSINESS LICENSING
Register your business with the city where it’s located (or the county if it’s in an unincorporated area). This registration is needed for transaction privilege tax purposes and for any business or occupational licenses the city may require. For more information on taxes and licenses, you can visit the Arizona Commerce Authority: Small Business Services website at https://www.azcommerce.com/.
STEP 9
GET A FEDERAL EIN OR TIN FROM THE IRS
Getting an EIN/TIN is important for taxes and to open a business banking account. To apply for an EIN or TIN visit the Internal Revenue Service (IRS) website at https://www.irs.gov/. You can find helpful information about taxes on the Arizona Commerce Authority: Small Business Services website at https://www.azcommerce.com/.