Your company must register with the Arizona Department of Revenue (ADOR) before engaging in any taxable commercial activity in the state of Arizona for the purposes of transaction privilege tax (TPT) and withholding. When you purchase an established firm, you must register the business with the appropriate authorities.
Choosing the type of entity should be considered before starting the incorporation procedure. The required information for registration includes:
- The full name of the company and the abbreviation it is going to use in business.
- Company officers (executive bodies).
- The names and signatures of the founders who are forming the company.
Your business must register with ADOR before conducting any taxable business activity in Arizona for transaction privilege tax (TPT) and withholding purposes. When buying an existing business, you need to register the business.
A Guide to Taxes for Arizona Businesses is designed to describe the types of licenses and taxes applicable in the state, and it identifies other agencies that impose taxes and/or require licensing. HB 2770 can also impact Arizona businesses.
Our guide to starting a business in Arizona is designed to help you establish a strong foundation for a successful business. It covers local regulations, funding opportunities, resources, compliance, and long-term success strategies. Steps include choosing a name, obtaining licenses, permits, and registering with the state online or in-person at Commerce Authority. Provide necessary information, get an EIN from the IRS, and obtain the required licenses and permits.
Contractors (both primes and subs) are required to obtain a license from the Arizona Registrar of Contractors. Some exemptions apply to them. Limited liability companies must pay an $800 annual tax. Only certain activities need a license or city approval. Licensing requirements depend on the contract value and type of business activity.
Unlicensed contractors can do jobs under $1,000, but most states require licenses to ensure safety. Licensing and regulation requirements vary by state and industry. All contractors need to maintain fair and ethical business practices, including obtaining the necessary bonds and complying with local regulations.