Starting your own business in Arizona can be effortless!
Do you feel the inner calling for independence and business adventure? Would you like to become a business owner and a decision-maker? Starting a business is like opening a new door. It brings new experiences to light, both good and challenging. It can sound complicated and scary, but in fact - it is only a few steps process. Below, we list what exactly is needed for starting your own business in Arizona. We will help you to set it all right.
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Deciding on a company name & structure
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Registration process & documents
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Tax obligations
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Valuable tips
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& more
Are you from another state?
Check out other guides if you need more detailed information about different states. You can click the state you are interested in on our map or choose it from the list below.
Pick your company name
While thinking about your company name, consider these few crucial elements, as a perfect name:
- cannot exist in the business database (cannot be already registered)
- should be personal and unique
- has a positive association
- indicates the type of industry
- is related to what you do (if it is very specific) and open for possible business modifications in the future as well (to stay up-to-date even if you, e.g., broaden your field of expertise)
You may also decide on a trademark for your business, like logo and a slogan.
Choose the entity type
There are a few types of entities that you can form in Arizona state. Requirements, taxes, benefits, and flaws differ from one another.
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If you are sure to work alone in your company and want the easiest form of setting up a business and its taxation, you might decide on a Sole Proprietorship
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To be able to work in two or more people, while still having the easiest form of setting up a business and its taxation, consider General Partnership
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For more official and reliable business, together with personal assets protection, choose a Limited Liability Company (LLC)
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If your profession needs a license, you need to start a Professional Limited Liability Company (PLLC)
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For a bigger enterprise, with more employees, consider a Corporation
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For a Nonprofit undertaking in Arizona you should form a Limited Liability Company with tax-exempt status (you can apply for it to the Internal Revenue Service (IRS), see: Step "6. Obtain EIN & check tax regulations"
While considering a small service business, we advise you to choose from the first four options.
Note: Converting your Sole Proprietorship to an LLC is a complicated and time-consuming process. It is easier to stay with the entity type you chose primarily.
Set up your business website
A business website is the visual image of your company and a source of information about your services for your future potential customers. While creating your webpage, consider the following elements:
- it cannot be already registered
- the domain name should be the same or at least very close to your business name
You can set up your company website for free using IKOL - just create an account and your website is generated automatically! Then you can customize it to your needs, by adding services from our default catalog, adjusting the layout, publishing photos, and other data.
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Place application with needed documents
Depending on a chosen business entity, the application procedures and documents may vary. Find your type below and check what is needed.
There are no documents you have to submit to start your Sole Proprietorship in Arizona. It means that you do not register your company as its own legal entity. This is what makes it the easiest business to begin.
However, there are some steps you might need to take, e.g. getting licenses or permits to operate.
If in the earlier stage, you decided on a distinct company name than just your first and last name, you must submit a Trade Name Registration Application together with a $10 fee to register a so-called Trade Name (aka "Doing Business As" - DBA).
There are no documents you have to submit to start your General Partnership in Arizona. It means that you do not register your company as its own legal entity. The only condition is you need at least two people to form this business.
However, there are some steps you might need to take, e.g. getting licenses or permits to operate.
If in the earlier stage, you decided on a distinct company name than just your first and last name, you must submit a Trade Name Registration Application together with a $10 fee to register a so-called Trade Name (aka "Doing Business As" - DBA).
Needed documents & fee - can be submitted both by mail or online:
- Articles of Organization
- Cover Sheet
- Statutory Agent Acceptance
- Manager / Member structure attachment
- $50 filing fee or $85 for expedited processing
- Accepted forms of payment: check or money order; payable to: “Arizona Corporation Commission" (AZCC: https://azcc.gov)Note: Do not send cash!
If you submit the documents via mail, send the documents together with the fee to:
Arizona Corporation Commission
1300 West Washington Street
Phoenix, Arizona 85007
If you submit the documents online, create an account in the eCorp system and set up your LLC there.
Check the government instruction on filling the forms.
For PLLC the requirements are the same as for LLC. Additionally, you still must obtain a needed license.
Wait for application approval
Whether you choose regular processing or expedited processing, the waiting time will vary. It can be as fast as 1-2 working days, or even up to 16 working days, or longer.
Note: You can obtain the decision even within 2 hours if you provide a $450 fee.
After your application is positively considered, you will receive approval information via the channel you submitted your documents: online or by mail.
You will get a decision on paper and stamped documents that you should keep.
Note: Even after receiving application approval, you still must obtain the needed licenses and permits.
Obtain EIN & check tax regulations
Obtain an Employer Identification Number (EIN) which is needed also for a one-person business, e.g. to open a business bank account. Apply via the Internal Revenue Service website.
If you are a Sole Proprietorship, you pay business taxes almost the same as your individual taxes. You just need to fill in one more document which is Schedule C.
If you are a Nonprofit business: After setting up an LLC, apply to the IRS for tax-exempt status.
Find all tax forms and instructions on the official Internal Revenue Service website: irs.gov/forms-instructions.
To become an AZTax user and pay taxes online, register an account here: aztaxes.govNote: "It is advisable to seek the advice of your tax or legal professional and/or the IRS (www.irs.gov)." (source: AZCC https://azcc.gov)
Win your first customers & enjoy independence
You are all set with your brand-new business in Arizona. As you are an independent business owner now, it is time to follow your business plan and gather your first customers. Not sure how to do it? IKOL is an up-to-date software that helps manage all your business tasks and formalities. You can also easily get your domain through IKOL to enhance your online presence. Try and see on your own! Try and see on your own!
