How to Start a Business in Arizona 2022: The Ultimate Step-by-Step Guide

How to Start a Business in Arizona 2022: The Ultimate Step-by-Step Guide

 how-to-start-a-business-in-arizona

Ranked by Forbes as one of the five states with the best prospects for economic growth, starting a business in Arizona is a great choice for entrepreneurs. How you should understand step by step procedures on how to start a business in Arizona.

With these step-by-step guides, you can start your business in Arizona and take the fast track to financial and personal independence.

Arizona allows new businesses to survive and thrive, making it one of the best places in the United States to start a business, according to a new study. In a report by WalletHub , Arizona was chosen as the seventh best state in the nation to start a business.

How much does it cost to start a business in Arizona?

The cost of incorporating an Arizona Limited Liability Company (LLC) is $50. These fees are paid to the Arizona Corporation Commission when the LLC's Articles of Incorporation are filed.

The registration fee is a one-time fee. You don't have to pay monthly (or annual) fees to maintain your Arizona LLC.

There are two ways to create your LLC:

•             You can hire a professional LLC incorporation service to set up your LLC (for a small fee).

•             Or, you can use our free guide to forming an LLC in Arizona to do it yourself.

To form an LLC in Arizona, you must file Articles of Organization with the Arizona Corporation Commission. The State of Arizona charges $50 to process and save this document.

In Arizona, newly incorporated LLCs are required to publish a Notice of LLC Incorporation in a licensed newspaper in the county where the LLC is headquartered for three consecutive weeks.

The publication cost ranges from $30 to $300 and depends on the county. This must be done within 60 days of establishment (except in Maricopa or Pima counties).

How long does it take to register a business in Arizona?

How long it takes to register a business in Arizona depends on the type of filing (online or by mail) and how much you pay. On the slow side, it may take 14-16 business days. The next fastest is 7-9 working days. And a one-day approval time is even faster.

Steps to Starting a Business in Arizona

#1: Choose a business idea

The first step to starting a business in Arizona is to have a good business idea. Maybe you've already decided on an idea, or maybe you're still making up your mind. Look for an idea that matches your interests, personal goals, and natural abilities.

This will help you stay motivated when the going gets tough and will greatly improve your chances of success. Either way, you can get detailed information about the industry of the business you are venturing into. Trends, startup costs, tips and more.

#2: Write a business plan

Once you have a solid business idea, it's time to start working on the business plan. Successful businesses are built through careful planning.

Before investing a significant amount of money and other resources in your business, critically analyze your idea and create a game plan.

Many people only think of writing a business plan because the bank requires one to get money. While that's a valid reason, more importantly, writing a business plan gets ideas out of the entrepreneur's mind and helps create a roadmap for the desired business location.

Just as most builders wouldn't build a house without a plan, a business owner shouldn't start a business without a business plan.

#3: Select a business unit

The next step in starting a business in Arizona is choosing a business unit. Business unit is sometimes referred to as business structure or legal structure, which refers to how a business is legally organized.

There are four main corporations: sole proprietorship, partnership, corporation, and limited liability company (LLC).

#4: Register a business name

After deciding on the business unit, the next step in starting a business in Arizona is to register the business name.

Registering your business in Arizona as a legal entity such as an LLC or corporation has two main advantages:

•             Increased credibility

•             Protection against personal liability in the event of a lawsuit against your company

For most small businesses, registering an LLC is a good option. Compared to other companies, LLCs are easier to set up, easier to manage and enjoy favorable tax treatment. You can set up an LLC in Arizona for between $90 and $210, depending on your county.

Before choosing a name, the first thing to do is to check that the name you are about to use is not already registered with another company.

You can also register to prevent others from using your business, product or service name.

#5: Get an EIN

The Employer Identification Number or EIN (sometimes called the Federal Employer Identification Number or FEIN) is a nine-digit tax identification number issued by the Internal Revenue Service (IRS).

This number identifies a business operating in the United States and is used to pay income taxes, file tax returns, etc. Just as a social security number is for a person, the EIN is similar to a social security number for a business.

While most businesses require an EIN, some do not. Partnerships, corporations and most LLCs OR sole proprietorships with employees MUST register for an EIN.

Sole proprietorships or sole proprietorships without employees are NOT required to earn an EIN. In these cases, the owner's social security number is used to identify the business.

Filing the EIN can be done online through the IRS website, which only takes a few minutes and the number is available instantly.Alternatively, an EIN can be registered by mail or fax by submitting IRS Form SS-4.

#6: Make sure

Business insurance helps you manage risk and focus on growing your business. The most common types of business insurance to consider are:

•             General liability insurance

•             workers compensation insurance

•             Professional liability insurance

It is generally recommended that all small businesses, including private businesses, obtain general liability insurance. Businesses that sell professional advice or services, such as consulting firms and accounting firms, should also consider a professional liability policy.

In Arizona, businesses with one or more employees, other than the officers and members of the LLC, are required by law to carry employee compensation insurance.

#7: Open a business bank account

Keeping your business and personal finances in separate business bank and credit card accounts makes it easier for you to track business income and expenses.

The use of business bank accounts and dedicated credit accounts is essential to protect personal assets.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is called piercing the veil of your business.

Plus, when you learn how to build business credit, you can get credit cards and other financing in your business name (instead of your own), better interest rates, higher credit lines And much more.

You can use two #s to protect your business:

1. Opening a commercial bank account:

•             Separates your personal assets from your business assets that are necessary for the protection of personal assets.

•             Facilitates accounting and tax declarations.

2. Get a business credit card:

•             Helps you separate personal and business expenses.

•             Builds your business credit history, which can be useful for raising capital later (like small business loans).

Each bank is different, but in general they will require:

Sole Proprietorship and Partnership – Business Name Certificate, EIN or SSN and Driver’s License

Corporation – Certificate of Formation, Articles of Association, Certificate of Good Standing, EIN and Owner(s) Driver's License

LLC - Certificate of Incorporation, Business Agreement, Seal of Approval, EIN and Driver's License

#8: Apply for business licenses and permits

To legally operate your new business, you must comply with federal, state, and local regulations. In many cases, this requires obtaining one or more operating permits and/or licenses.

Certain licenses and permits are required to operate a business in Arizona. Required licenses depend on business activities and location.Some common listings are:

Commercial Licenses – There is no commercial license for the state of Arizona. However, many cities require a business license to work.

Transaction Privilege Tax License – Businesses that sell products and certain services must register with the Arizona Department of Treasury (ADOR) to obtain a Transaction Privilege Tax License (TPT). TPT is like sales tax in other states.

Professional License – Certain services such as construction, transportation for hire, massage, babysitting, home inspection and pest control require a government license.

Visit the Arizona Commerce Authority's Small Business Services website for more information on business licensing regulations.Although it is not a license for the enterprise, a license is required to operate.

#9: Find funding

Raising funds to start a small business is a difficult process for many.

There are not only unfamiliar terms such as collateral, equity, assets, liabilities and others, but also different funding sources with different rules, processes and costs.

From traditional bank loans and Small Business Administration (SBA) loan guarantees to investors, grants and more, researching what's available and best suited for your business can be overwhelming.

#10: Hire employees

Hiring employees is a complex and often overwhelming process for a new small business owner with multiple agencies registered and labor laws must be understood.

Employers are required to report new hires, verify U.S. worker eligibility, payroll deductions, unemployment taxes, and payroll deductions, including Social Security and Medicare.

#11: Get Trade Assurance

Business insurance is never at the top of the list of things to do when starting a business. However, business insurance can be essential to protect your business.

Most types of business insurance are optional, with the exception of workers' compensation insurance in most states. Some states also require professional liability insurance for companies that provide certain services and commercial auto insurance.

Even if insurance is not required and there is a fire, theft or personal injury, the business owner may have to pay damages and legal fees out of pocket.

Domestic businesses and ancillary businesses may also consider business insurance, as their personal home and auto insurance policies may not be covered in the event of a business loss.

#12: Define your brand and promote your business

The strongest and most memorable businesses are built on a strong brand. When developing your brand, consider the following:

•             What does your business represent?

•             Your Core Values

•             How to build customer trust?

Once you're sure of your answers to these questions, it's time to move on to your business name. Your business name is the cornerstone of a good brand image and a successful business

Once you've defined your name, you'll need a logo to finalize your brand. For something as important as your branding, it's always a good idea to find ideas in different places.

#13: Set up an accounting system

Setting up an accounting system for your business is one of the most important things you can do for your business to ensure long-term success.

An accounting system helps you track your business performance and simplifies annual tax filings. With high quality accounting software , you can download your bank and credit card transactions, making accounting quick and easy.

There's only one problem: you're not a numbers person. Your head hurts just thinking about closings, debits and credits, and accounting software.

Financial tracking not only helps you avoid trouble with the IRS, but also helps you track and monitor business trends and maximize profits.

Luckily, understanding the numbers doesn't mean concluding financially. Tracking a business's finances can be done with pen and paper (not really recommended), spreadsheets, accounting software, or hiring an accountant.

#14: Set up a web presence

A professional website is essential to the long-term success of your business, regardless of your industry. A website allows potential customers to find your business online and learn about the products or services you offer, and it also adds credibility to your business. .

Besides having a website, there are other ways to grow your business online:

•             Creation of profiles on social networks (Facebook, Twitter, etc.)

•             Create accounts on review sites (Yelp, Google Reviews, etc.)

•             Sign up for a local Google profile

Conclusion

Starting a new business is an exciting endeavor and the department congratulates you on your decision to become an entrepreneur or franchisee.

The #s above are just suggestions of the order it may take to start a business in Arizona. Your particular business, tax or legal needs may require you to take different actions or do things in a different order.

References

•             Ten Steps to Starting a Business in AZ | Arizona Corporation...

•             How to Start a Business in Arizona - How to Start an LLC

•             Business | Arizona Department of Revenue

•             Start a Business in Arizona | Simple, step-by-step guide

Author's Recommendations

•             How to Start a Business in Alaska 2022: Step by Step Process

•             10 Best Hard Money Lenders and How They Work in 2022

•             How to Start a Business in Ohio in 2022: The Step-by-Step Guide

•             Venmo vs PayPal: the best payment apps of 2022?

How to Start a Business in Arizona 2022: The Ultimate Step-by-Step Guide

 

by francis

November 18, 2021

9 minute read

 how-to-start-a-business-in-arizona

how-to-start-a-business-in-arizona

Ranked by Forbes as one of the five states with the best prospects for economic growth, starting a business in Arizona is a great choice for entrepreneurs. How you should understand step by step procedures on how to start a business in Arizona.

 

With these step-by-step guides, you can start your business in Arizona and take the fast track to financial and personal independence.

 

 

 

Arizona allows new businesses to survive and thrive, making it one of the best places in the United States to start a business, according to a new study. In a report by WalletHub , Arizona was chosen as the seventh best state in the nation to start a business.

 

How much does it cost to start a business in Arizona?

 

The cost of incorporating an Arizona Limited Liability Company (LLC) is $50. These fees are paid to the Arizona Corporation Commission when the LLC's Articles of Incorporation are filed.

 

The registration fee is a one-time fee. You don't have to pay monthly (or annual) fees to maintain your Arizona LLC.

 

There are two ways to create your LLC:

 

You can hire a professional LLC incorporation service to set up your LLC (for a small fee).

Or, you can use our free guide to forming an LLC in Arizona to do it yourself.

To form an LLC in Arizona, you must file Articles of Organization with the Arizona Corporation Commission. The State of Arizona charges $50 to process and save this document.

 

In Arizona, newly incorporated LLCs are required to publish a Notice of LLC Incorporation in a licensed newspaper in the county where the LLC is headquartered for three consecutive weeks.

 

 

 

The publication cost ranges from $30 to $300 and depends on the county. This must be done within 60 days of establishment (except in Maricopa or Pima counties).

 

How long does it take to register a business in Arizona?

 

How long it takes to register a business in Arizona depends on the type of filing (online or by mail) and how much you pay. On the slow side, it may take 14-16 business days. The next fastest is 7-9 working days. And a one-day approval time is even faster.

 

Steps to Starting a Business in Arizona

 

#1: Choose a business idea

 

The first step to starting a business in Arizona is to have a good business idea. Maybe you've already decided on an idea, or maybe you're still making up your mind. Look for an idea that matches your interests, personal goals, and natural abilities.

 

This will help you stay motivated when the going gets tough and will greatly improve your chances of success. Either way, you can get detailed information about the industry of the business you are venturing into. Trends, startup costs, tips and more.

 

#2: Write a business plan

 

Once you have a solid business idea, it's time to start working on the business plan. Successful businesses are built through careful planning.

 

Before investing a significant amount of money and other resources in your business, critically analyze your idea and create a game plan.

 

 

 

Many people only think of writing a business plan because the bank requires one to get money. While that's a valid reason, more importantly, writing a business plan gets ideas out of the entrepreneur's mind and helps create a roadmap for the desired business location.

 

Just as most builders wouldn't build a house without a plan, a business owner shouldn't start a business without a business plan.

 

#3: Select a business unit

 

The next step in starting a business in Arizona is choosing a business unit. Business unit is sometimes referred to as business structure or legal structure, which refers to how a business is legally organized.

 

There are four main corporations: sole proprietorship, partnership, corporation, and limited liability company (LLC).

 

#4: Register a business name

 

After deciding on the business unit, the next step in starting a business in Arizona is to register the business name.

 

Registering your business in Arizona as a legal entity such as an LLC or corporation has two main advantages:

 

Increased credibility

Protection against personal liability in the event of a lawsuit against your company

For most small businesses, registering an LLC is a good option. Compared to other companies, LLCs are easier to set up, easier to manage and enjoy favorable tax treatment. You can set up an LLC in Arizona for between $90 and $210, depending on your county.

 

Before choosing a name, the first thing to do is to check that the name you are about to use is not already registered with another company.

 

 

 

You can also register to prevent others from using your business, product or service name.

 

#5: Get an EIN

 

The Employer Identification Number or EIN (sometimes called the Federal Employer Identification Number or FEIN) is a nine-digit tax identification number issued by the Internal Revenue Service (IRS).

 

This number identifies a business operating in the United States and is used to pay income taxes, file tax returns, etc. Just as a social security number is for a person, the EIN is similar to a social security number for a business.

 

 

 

While most businesses require an EIN, some do not. Partnerships, corporations and most LLCs OR sole proprietorships with employees MUST register for an EIN.

 

Sole proprietorships or sole proprietorships without employees are NOT required to earn an EIN. In these cases, the owner's social security number is used to identify the business.

 

Filing the EIN can be done online through the IRS website, which only takes a few minutes and the number is available instantly. Alternatively, an EIN can be registered by mail or fax by submitting IRS Form SS-4.

 

#6: Make sure

 

Business insurance helps you manage risk and focus on growing your business. The most common types of business insurance to consider are:

 

General liability insurance

workers compensation insurance

Professional liability insurance

It is generally recommended that all small businesses, including private businesses, obtain general liability insurance. Businesses that sell professional advice or services, such as consulting firms and accounting firms, should also consider a professional liability policy.

 

In Arizona, businesses with one or more employees, other than the officers and members of the LLC, are required by law to carry employee compensation insurance.

 

#7: Open a business bank account

 

Keeping your business and personal finances in separate business bank and credit card accounts makes it easier for you to track business income and expenses.

 

The use of business bank accounts and dedicated credit accounts is essential to protect personal assets.

 

 

 

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is called piercing the veil of your business.

 

Plus, when you learn how to build business credit, you can get credit cards and other financing in your business name (instead of your own), better interest rates, higher credit lines And much more.

 

You can use two #s to protect your business:

 

1. Opening a commercial bank account:

 

Separates your personal assets from your business assets that are necessary for the protection of personal assets.

Facilitates accounting and tax declarations.

2. Get a business credit card:

 

Helps you separate personal and business expenses.

Builds your business credit history, which can be useful for raising capital later (like small business loans).

Each bank is different, but in general they will require:

 

Sole Proprietorship and Partnership – Business Name Certificate, EIN or SSN and Driver’s License

 

 

 

Corporation – Certificate of Formation, Articles of Association, Certificate of Good Standing, EIN and Owner(s) Driver's License

 

LLC - Certificate of Incorporation, Business Agreement, Seal of Approval, EIN and Driver's License

 

#8: Apply for business licenses and permits

 

To legally operate your new business, you must comply with federal, state, and local regulations. In many cases, this requires obtaining one or more operating permits and/or licenses.

 

Certain licenses and permits are required to operate a business in Arizona. Required licenses depend on business activities and location. Some common listings are:

 

Commercial Licenses – There is no commercial license for the state of Arizona. However, many cities require a business license to work.

 

Transaction Privilege Tax License – Businesses that sell products and certain services must register with the Arizona Department of Treasury (ADOR) to obtain a Transaction Privilege Tax License (TPT). TPT is like sales tax in other states.

 

Professional License – Certain services such as construction, transportation for hire, massage, babysitting, home inspection and pest control require a government license.

 

Visit the Arizona Commerce Authority's Small Business Services website for more information on business licensing regulations. Although it is not a license for the enterprise, a license is required to operate.

 

#9: Find funding

 

Raising funds to start a small business is a difficult process for many.

 

There are not only unfamiliar terms such as collateral, equity, assets, liabilities and others, but also different funding sources with different rules, processes and costs.

 

From traditional bank loans and Small Business Administration (SBA) loan guarantees to investors, grants and more, researching what's available and best suited for your business can be overwhelming.

 

#10: Hire employees

 

Hiring employees is a complex and often overwhelming process for a new small business owner with multiple agencies registered and labor laws must be understood.

 

Employers are required to report new hires, verify U.S. worker eligibility, payroll deductions, unemployment taxes, and payroll deductions, including Social Security and Medicare.

 

#11: Get Trade Assurance

 

Business insurance is never at the top of the list of things to do when starting a business. However, business insurance can be essential to protect your business.

 

Most types of business insurance are optional, with the exception of workers' compensation insurance in most states. Some states also require professional liability insurance for companies that provide certain services and commercial auto insurance.

 

Even if insurance is not required and there is a fire, theft or personal injury, the business owner may have to pay damages and legal fees out of pocket.

 

Domestic businesses and ancillary businesses may also consider business insurance, as their personal home and auto insurance policies may not be covered in the event of a business loss.

 

#12: Define your brand and promote your business

 

The strongest and most memorable businesses are built on a strong brand. When developing your brand, consider the following:

 

What does your business represent?

Your Core Values

How to build customer trust?

Once you're sure of your answers to these questions, it's time to move on to your business name. Your business name is the cornerstone of a good brand image and a successful business

 

Once you've defined your name, you'll need a logo to finalize your brand. For something as important as your branding, it's always a good idea to find ideas in different places.

 

#13: Set up an accounting system

 

Setting up an accounting system for your business is one of the most important things you can do for your business to ensure long-term success.

 

An accounting system helps you track your business performance and simplifies annual tax filings. With high quality accounting software , you can download your bank and credit card transactions, making accounting quick and easy.

 

There's only one problem: you're not a numbers person. Your head hurts just thinking about closings, debits and credits, and accounting software.

 

Financial tracking not only helps you avoid trouble with the IRS, but also helps you track and monitor business trends and maximize profits.

 

Luckily, understanding the numbers doesn't mean concluding financially. Tracking a business's finances can be done with pen and paper (not really recommended), spreadsheets, accounting software, or hiring an accountant.

 

#14: Set up a web presence

 

A professional website is essential to the long-term success of your business, regardless of your industry. A website allows potential customers to find your business online and learn about the products or services you offer, and it also adds credibility to your business. .

 

Besides having a website, there are other ways to grow your business online:

 

Creation of profiles on social networks (Facebook, Twitter, etc.)

Create accounts on review sites (Yelp, Google Reviews, etc.)

Sign up for a local Google profile

Conclusion

 

Starting a new business is an exciting endeavor and the department congratulates you on your decision to become an entrepreneur or franchisee.

 

The #s above are just suggestions of the order it may take to start a business in Arizona. Your particular business, tax or legal needs may require you to take different actions or do things in a different order.

 

References

 

Ten Steps to Starting a Business in AZ | Arizona Corporation...

How to Start a Business in Arizona - How to Start an LLC

Business | Arizona Department of Revenue

Start a Business in Arizona | Simple, step-by-step guide

Author's Recommendations

 

How to Start a Business in Alaska 2022: Step by Step Process

10 Best Hard Money Lenders and How They Work in 2022

How to Start a Business in Ohio in 2022: The Step-by-Step Guide

Venmo vs PayPal: the best payment apps of 2022?