Do Contractors Need a Business License in Arizona?
Contractors (both primes and subs) are required to obtain a license from the Arizona Registrar of Contractors. Some exemptions apply to them. A company wishing to be a subcontractor must register on AZ UTRACS.
You don’t need to register a business with the state. Limited liability companies must pay an $800 annual tax. The city does not issue general business licenses. Only certain activities need a license or city approval. As a private dancer, you need a tax ID and business license.
Steps to Start a Business in Arizona
- Choose a name.
- Purchase a domain or numbers.
- Get insurance.
- Licenses depend on the contract value: General, Commercial, Residential, Dual, Commercial, Specialty.
- License fees range $270-$580 plus bond.
- Licensing takes courses, exams and four years of experience.
Understanding Licensing Requirements for Contractors
Unlicensed contractors can do jobs under $1,000. Most states require licenses to ensure safety. Independent contractors usually don’t need licenses but some cities and counties require them. You must file Schedule C income reports. Federal licensing may be needed for some industries. States may require professional licensing. All contractors need a bond. Contractors need fair, ethical businesses.