How to Start a Small Business in Arizona
- 1). Establish the form of the business. Alternatives include sole proprietorship, general partnership. Limited Liability Corporation, Limited Liability Partnership, Shareholder Corporation and a C-Corporation. The first two forms do not have to be registered with the state; the last four do have to be registered through the Secretary of State's Office.
- 2). Obtain an Employer Identification Number from the federal government, even if you have no plans to hire employees. The EIN gives a number to use for the business in lieu of your personal social security number. You will also need it to file the company's taxes or apply for credit.
- 3). Register the name of the business with the Secretary of State's office. Do this by mail or online. Registering the name makes sure no one else uses it in the state of Arizona and that you're not using a name already in use.
- 4). Acquire the proper licenses. If you are reselling goods you will need a state sales privilege license and the same license for the city where your company conducts business. Some cities also require a business license. Check with the city's office to find out if they do and what the costs are.
- 5). Obtain business licenses for all the cities you do business in, even if it's a mobile business. You will be responsible for paying the applicable taxes to each city or town. For example, if you have an arts and crafts business that participates in shows in Phoenix, Mesa, Fountain Hills and Tempe, you will need business licenses for all four cities plus you will have to pay the sales privilege taxes for any sales made in those cities.
- 6). Read your Homeowner's Association Rules to see if there is any prohibition of locating your business in your home. Check with the zoning office of your city or town to see if they are any zoning regulations.
