Are you thinking about turning your entrepreneurial dreams into reality and starting a business in the beautiful state of Arizona? Congratulations on taking the first step toward becoming a business owner! However, the process of launching a business can be intricate, and it's crucial to follow the right steps to ensure your venture's success. In this blog post, we'll walk you through the ten essential steps to starting a business in Arizona.
1. Choose a Unique Business Name
The first step in setting up your business is selecting a name that represents your brand. Make sure it's distinctive and not already in use by someone else. A quick internet search can help you determine its availability. Keep in mind that using a name already in use may lead to legal complications, so consider consulting with an attorney for guidance.
2. Consider Your Domain Name
In today's digital age, having a website is vital for most businesses. If your business name aligns with your website's domain name, you can consider purchasing it at this stage. However, owning a domain name doesn't grant you any legal rights to the business name, so it's essential to distinguish between the two.
3. Determine Your Business Entity Type
Decide on the legal structure for your business. Options in Arizona include a corporation, nonprofit corporation, or limited liability company (LLC). While you may have heard of terms like "S corp" or "C corp," these are federal tax designations. In Arizona, you'll form a corporation or nonprofit corporation. For expert advice on tax and liability considerations, consult an accountant or attorney. You can also explore resources from the Arizona Commerce Authority Small Business Services.
4. Check Name Availability with the Arizona Corporation Commission
Before moving forward, ensure that your chosen business name is available. Visit the Arizona Corporation Commission (ACC) website and use the "Check Name Availability" feature to search for existing corporations, LLCs, or trade names with the same name.
5. Secure the Name or Register the Entity
If your desired name is available, you have three options:
• Reserve the name through the ACC website (valid for 120 days).
• Register the name as a trade name with the Arizona Secretary of State.
• Submit your formation documents online via the ACC's website or by fax or mail. Owning a trade name may eliminate the need for a name reservation.
6. File with the Arizona Corporation Commission
Next, submit the necessary formation documentation to the ACC. The most efficient method is to use the ACC's online services. For LLCs, submit Articles of Organization; for corporations, submit Articles of Incorporation. Your documents will be reviewed, and you'll receive either an approval or rejection along with additional instructions.
7. Arizona Department of Revenue
Depending on your business activities, you might need to complete a transaction privilege tax application with the Arizona Department of Revenue (ADOR). For more information, consult both the ADOR website and the Arizona Commerce Authority Small Business Services. Keep in mind that the ACC cannot provide advice on transaction privilege tax; contact ADOR for assistance.
8. City or County Tax and Business Licensing
Register your business entity with the local city or county where it operates. This is necessary for transaction privilege tax and any required business or occupational licenses. Be aware that the ACC doesn't issue these licenses. You can find useful links related to taxes and licensing on the Arizona Commerce Authority Small Business Services website.
9. Obtain a Federal EIN or TIN from the IRS
Visit the Internal Revenue Service (IRS) website to obtain an Employer Identification Number (EIN) or Tax Identification Number (TIN) for your business. You can also find tax-related information on the Arizona Commerce Authority Small Business Services website.
10. Establish a Business Bank Account
Finally, open a business bank account with a bank or credit union. Ensure your checks have a pre-printed name and address, as the ACC does not accept temporary checks without this information. If you opened your account before filing with the ACC, you may need to use an established account to pay filing fees if your new account checks lack this information.
Starting a business in Arizona can be an exciting journey, but it's essential to follow these steps carefully to ensure a smooth and legally compliant launch. Remember that seeking professional advice from an attorney or accountant can provide valuable insights into your specific business needs. With the right guidance and determination, your Arizona business venture can thrive in this dynamic and business-friendly state. Good luck!