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How to Start a Business in Arizona

How to register a business in Arizona and everything else it takes to open legally, in order — sole proprietor vs. LLC, the state filing, your EIN, tax registration, and licenses, with the official Arizona links for each step. Most people finish the core setup in one to three weeks.

LLC filing fee
~$50
Processing
14–16 business days (regular)
Ongoing report
none
State sales tax
yes
State income tax
yes

  1. How to register a business in Arizona

    Sole proprietors under their own name file nothing with Arizona to exist — a DBA if you use a trade name, plus local licenses. To register an LLC or corporation you file formation paperwork with the Arizona business filing office (about $50, 14–16 business days (regular)), then get a free EIN and register for state taxes.

    Arizona business registration ↗

  2. Pick a structure (sole proprietor or LLC)

    Most Arizona owners start as a sole proprietor (free, no filing) or form an LLC for liability protection. The LLC filing fee is about $50, and formation typically takes about 14–16 business days (regular). Confirm the current fee on the state site before you pay.

    Arizona business filing office ↗

  3. Name a registered agent

    If you form an LLC or corporation, Arizona needs a registered agent with a physical in-state address. You can be your own agent if you're available during business hours, or hire a service for about $100–$150/year.

  4. Get your EIN from the IRS

    An Employer Identification Number is free from the IRS and takes a few minutes online. You need it to open a business bank account and to hire.

    IRS — Apply for an EIN ↗

  5. Register for Arizona taxes

    Arizona has a state sales/use tax and has a state income tax. Arizona requires newspaper publication of your LLC formation in most counties (Maricopa and Pima are exempt).

    Arizona tax registration ↗

  6. Confirm local licenses and permits

    Arizona rarely issues a single statewide "business license" — most licensing is by city or county, plus profession-specific licenses. Check your city and your trade.

    Arizona professional licensing ↗

  7. Open a business bank account and get insurance

    Keep business and personal money separate from day one. General liability insurance is the baseline; some contracts also require a bond.

  8. Put the ongoing report on your calendar

    Arizona does not require an ongoing entity report for LLCs — one less deadline to track.

    Arizona reports ↗

Start your business in Arizona

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Frequently asked

How do I register a business in Arizona?

Sole proprietors under their own name file nothing with Arizona to exist — a DBA if you use a trade name, plus local licenses. To register an LLC or corporation you file formation paperwork with the Arizona business filing office (about $50, 14–16 business days (regular)), then get a free EIN and register for state taxes.

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

Registering as a sole proprietor is free (a DBA filing, if you use a trade name, is usually $10–$50 at the county or state). Registering an LLC costs about $50 in Arizona. An EIN from the IRS is free.

How much does it cost to start an LLC in Arizona?

The state filing fee is about $50. Beyond that, budget for a registered agent if you hire one (~$100–$150/year), and any local license fees. An EIN is free.

Do I need an LLC to start a business in Arizona?

No. You can operate as a sole proprietor in Arizona with no state filing. An LLC adds a layer of personal liability protection and can make you look more established to customers and lenders — it's a judgment call based on your risk and goals, not a legal requirement.

How long does it take to form an LLC in Arizona?

Standard processing is about 14–16 business days (regular). Many states offer paid expedited options.

Does Arizona have a sales tax?

Yes. If your product or service is taxable in Arizona, you must register with the state tax agency before you collect tax. Many services are not taxable — confirm on the official site.

What ongoing filings does an Arizona LLC have?

Arizona does not require an ongoing entity report for LLCs — one less deadline to track.

Official sources

Fees and timelines are commonly-cited figures last reviewed September 2026 and can change — always confirm on the official site. This is educational information, not legal or tax advice.

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AI-generated guidance is for educational purposes only and is not legal, tax, or investment advice. Disclosures · Trust center