How To Get An Arizona Business License (2024 Guide)

There is no general business license in the state of Arizona or one type of license that applies for all businesses. However, most towns or cities in which a business operates does require licensing. Although not everyone will need a business license – the type of business you operate, the nature of your business, and your location will determine the licensing requirements to operate.

Arizona business license search is a great tool to help determine if you need a license as well as how to register your business.

In general, there are primarily three basic types of business licenses in Arizona: Transaction Privilege (Sales) Tax (TPT), Business and Regulatory (professional/special). If your business falls into one or more of these categories then you must apply for the required licenses.

• State Transaction Privilege (Sales) Tax (TPT) License. This license is required for any businesses selling a product or conducting a service subject to transaction privilege tax in the state. This is commonly referred to as a sales tax, resale, vendor, wholesale or tax license. For further information regarding whether or not your business activity is subject to transaction privilege (sales) or use (tax), check with the Arizona Department of Revenue (ADOR). Your business must register with ADOR before any taxable activity in Arizona can occur.
• Business License/Local Licenses/Permits. Each Arizona city or town in which a business is located or operates may require licensing. It is best to check with the city/town office where your business is located or operates for required licenses.
• Regulatory (Professional/Special) Licensing Permits. Certain businesses and professions may require special licenses, certifications and permits. Business regulations depend on the type of industry as well as state, local and federal government requirements. To research business compliance requirements, you may use the Arizona Commerce Authority (ACA) Small Business Services’ Checklist Program.

To better serve you when starting a new business, the Arizona Department of Revenue (ADOR) is available to help business owners maintain tax and licensing compliance. If you need help determining licensing, you may contact License Compliance at LicenseCompliance@azdor.gov.

To offload the business license preparation process, we have listed six important steps to determine what licenses, permits and tax registrations your business may require in the State of Arizona.

Here’s how to get a business license in Arizona in six steps:

1. Evaluate Your Need for a License

If you plan on operating a business in the state of Arizona, you will likely need some form of license to operate, but license and registration requirements are not all the same. The Arizona Commerce Authority Small Business Checklist can help you determine which, if any, licenses you need. You may need a license if:

• You sell a product or a taxable service
• You conduct business in a town or city requiring a business license
• Your business type requires state, federal or state licensure, such as selling alcohol, giving massages, preparing food, handling investments, etc.

2. Have Business Information Ready

Every application is a little different but you can expect to provide the following information
when applying for licenses and permits:

• Taxpayer information
• License type
• Ownership
• Federal Employer Identification Number
• Name of business
• Address
• TPT information (once you obtain this, see Step 3)
• Date business started
• Date sales began

3. Apply for Arizona Tax License

If you plan on selling a product or engaging in a service subject to TPT (transaction privilege tax), you will need to obtain a TPT license. This is generally known as a seller’s permit in some states. To obtain a TPT license, you will need to visit the Department of Revenue. You must obtain a TPT license for each location at which business is conducted. Some taxable business activities include:

• Retail sales
• Restaurants/bars
• Hotel/motel
• Personal property rentals
• Independent contractor

4. Apply for Local Arizona Business Licensing

Each city/town in Arizona has its own rules regarding business requirements and they may require specific permits and licenses for your business. It is necessary to check with the city/town your business is located in to see if there are any zoning restrictions such as where you can locate your business and what improvements you can make to an existing property.
Some local common licenses and permits include:

• Health permit
• Zoning permit
• Building permit
• Business license
• Signage permit

5. Apply for State and Local Regulatory Licenses and Permits

Check with state agencies directly or review the Arizona Business One Stop page to determine if you need state licenses for your business. You should also check with your county office to comply with its necessary licensure and permits. Some examples include:

• Food-related businesses
• Selling firearms
• Pet shops
• Auction houses
• Pawn shops

6. Apply for Federal Business Licenses and Permits

If your business activities are regulated by a federal agency, you’ll need to obtain a federal license or permit. Fees and requirements depend on the nature of the business and the agency issuing the license or permit. Some examples include:

• U.S Department of Agriculture: issues permits for the import, transit and release of regulated animals, animal products, plants, veterinary biologics and more
• Alcohol and Tobacco Tax and Trade Bureau: if you manufacture, wholesale, import or sell alcoholic beverages at a retail location
• Bureau of Alcohol, Tobacco, Firearms and Explosives: if your business manufactures, deals or imports firearms, ammunition and explosives

The price of a business license or permit can vary depending on the type of license, business location, processing fees and recurring fees.

Phoenix charges an application fee from $24 up to $1,665 and a license/permit fee between $10 and $360, depending on the type of business. On the other hand, the city of Flagstaff requires a general business license for each permanent business location in the city, unless you are exempt. The fee is $8 and paid to the city of Flagstaff.

The state cost for each new TPT license/location is $12 plus any applicable city fees. This fee also applies when there is a change in business location or a program city is added or a reprint is requested. There is no additional cost to cancel or reinstate a license. If the ownership of your business changes, the TPT license is not transferable.

Bottom Line

Keep in mind, most all licenses do expire after a period of time and will need to be renewed annually. In general, there’s a wide variety of permits and licenses to keep track of.

Every business should check with the Arizona Commerce Authority, Town Clerk, County Clerk and local chamber of commerce to get more information regarding their specific business licensing.