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Business licenses and permits in Arizona

Arizona has no general state business license. Your city or town issues one if required, and your type of business decides the rest. How to find yours.

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General information, not legal or tax advice. Requirements vary and change, so confirm current instructions with the official source before you act, and ask a CPA or attorney about your situation.

Arizona has no general state business license. Start with your city or town, then the state agencies that license your kind of work.

What’s different in Arizona

  • The general business license is local, where one is required. Your city or town issues it, or the county outside city limits. The Corporation Commission, where you formed, doesn’t issue licenses.
  • The TPT license comes first for most sellers. It’s a state tax license from the Arizona Department of Revenue (ADOR), and operating without one when it’s required can be a misdemeanor.
  • One state starting point. Arizona Business One Stop brings together the state’s tools for planning and starting a business.

Do this

  1. Start at Arizona Business One Stop. It has tools to plan and start a business in Arizona, and new businesses apply for the TPT license through it.
  2. Get a local business license if your city or town requires one. Ask its business license or tax office, or the county if you’re in an unincorporated area.
  3. Check zoning before you sign a lease. Home or rented space, ask your city’s planning department (or the county’s) whether your activity is allowed at that address.
  4. Get any state license your work needs. Contractors license with the Registrar of Contractors; alcohol sellers with the Department of Liquor Licenses and Control. Other trades and professions have their own boards.
  5. Selling taxable goods or services? You also need a TPT license.
  6. Ask for help if the list gets long. The SBA’s Arizona District Office offers counseling and connects you to partner organizations that help small businesses.

What you get back

A local business license where one is required, plus one license or permit per state agency that regulates your work. Each renews on its own schedule, and the TPT license renews every year by January 1, so note the dates.

Common questions

Does Arizona require a state business license?

No general one. Your city or town may require a business license, or the county outside city limits. Some kinds of work need a state license, and most sellers need a TPT license from the Department of Revenue.

Do I need a business license to work from home in Arizona?

Ask your city or town; the rules are local. If you sell taxable goods or services, you still need a TPT license, with your home as the business address, and you're responsible for following city and county zoning.

Where do I get a business license in Arizona?

From your city or town, or the county if you're in an unincorporated area. The Corporation Commission doesn't issue business licenses.

Is a TPT license the same as a business license?

No. A TPT license is for the transaction privilege tax. Your city may require its own business license as well.

Sources

  1. Arizona Corporation Commission, 10 steps to starting a business
  2. Arizona Business One Stop
  3. Arizona Department of Revenue, TPT license
  4. Arizona Department of Revenue, applying for a TPT license
  5. Arizona Department of Revenue, renewing a TPT license
  6. Arizona Registrar of Contractors, applying for a license
  7. Arizona Department of Liquor Licenses and Control
  8. SBA, Arizona District Office

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