If your business is organized under the laws of another state or country and you want to transact business in Arizona, you may need to register as a foreign entity (see Additional Information below) with either the Arizona Secretary of State or the Arizona Corporation Commission, depending on your business structure.
Note:
The applicable business licenses, sales tax licenses, employee taxes and withholdings, workers compensation insurance, etc. apply to the business if your representative is your employee.
When a representative/salesman is operating as an independent contractor (not employed by the corporation), they are in business for themselves and they must be licensed as such.
Out-of-state vendors (that is, companies with no Arizona location) who make recurring sales into Arizona must register with the Arizona Department of Revenue for use tax purposes. The Arizona Department of Revenue publishes informational brochures regarding activities subject to state transaction privilege tax. Visit their website to view/print tax brochures.
Arizona Department of Revenue
Publications & Brochures: 610-Use Tax
www.azdor.gov/Publications.aspx
Online Arizona Joint Tax Application
www.aztaxes.gov
In addition to registering to operate your business in Arizona, your business activity or profession may be subject to state regulatory licenses (or permits), a state transaction privilege tax (TPT) license and/or local business/occupational license(s).
- If you are not sure if your business activity requires a regulatory license or which agency is the correct one for your profession or business activity, you may wish to visit the AZ.gov Occupational Licenses by Agency or Department at https://az.gov/app/license/individual.xhtml.
- The Arizona Department of Revenue publishes informational brochures regarding activities subject to state transaction privilege tax (TPT) which can be viewed or downloaded from their website at www.azdor.gov/Publications.aspx. For more information on how to apply for the state TPT license, visit their website at www.aztaxes.gov.
- In addition to the state’s requirements, each city/town/county in which you do business may have license, permit, and tax requirements. Contact should be made with the city/town/county license office.
If you plan to have one or more employees within Arizona, you will be subject to both state and federal requirements:
- Employers paying wages to employees for services performed in the state must register to remit withholding tax. The Arizona Joint Tax Application is used to register for your withholding/unemployment license. Register online at www.aztaxes.gov or download the form from the Arizona Department of Revenue’s website at www.azdor.gov/LinkClick.aspx?fileticket=XJzbd7xEKR0%3d&tabid=85. Questions concerning this form may be directed to the Department of Revenue (DOR) at 602.542.4576 or 800.634.6494. For questions on Unemployment Tax call the Arizona Department of Economic Security (DES) Employer Registration Unit at 602.771.6602 or email them at uit.status@azdes.gov.
- State and federal law requires all employers to report each new and rehired employee to the State Directory of New Hires within 20 days of their hire date. The website www.AZ-newhire.com will assist you in reporting your employees. To obtain additional information, call the Arizona Department of Economic Security, Division of Child Support Enforcement at 602.340.0555 or 888.282.2064.
- Companies may choose to insure their employees in one of three ways: insuring with the SCF Arizona, with another authorized carrier, or qualifying as a self-insurer. For more information on authorized carriers, visit the Industrial Commission of Arizona, State Labor Department website at www.ica.state.az.us or call 602.542.4515 for the Phoenix area and 520.628.5459 for the Tucson area. Information on the SCF Arizona can be found at www.scfaz.com or for a quote, please call their New Business Hotline at 888.706.4070.
We encourage you to visit our website at www.azcommerce.com/smallbiz. Small Business Services Online Resource Center provides information on business licensing, statewide resources, certification, procurement opportunities, and much more. You will, also, find information on State Incentives, Programs and Grants at www.azcommerce.com/BusAsst/Incentives.