When Do You Need a Business License in Arizona?
If you’re an Arizona entrepreneur looking to expand your horizons, you will have to navigate some red tape with the help of an experienced business lawyer in Phoenix. A qualified attorney can answer all of your biggest questions, including, “When do you need a business license?” and, “How do you secure a state business license?” Take a closer look at some of the licenses and permits that Arizona business owners need in this helpful guide from the team at Anthony Law Group.
Arizona Has No General Business License: What This Means for You
States with general business licenses allow all companies within that state to operate legally. While Arizona does not require a general business operating license on a statewide level, the local government may issue different licensing requirements based on the following:
- The type of business you operate
- The products or services you provide
- Your business’s location
For example, say you want to open a restaurant. You will have to secure a transaction privilege tax license since you will be selling taxable products along with either a state or federal business license since the government requires special licenses for companies involved in food preparation, alcohol sales, and more. The local city where you want to open the restaurant can also impose licensing requirements that you’ll have to meet.
Types of Business Licenses Entrepreneurs Can Receive
When do you need a business license and what type should you register for? A knowledgeable attorney can guide you through the process of registering for federal and local licensing requirements. In general, there are three types of state business licenses Arizona executives should be aware of.
Sales Tax License
The point of owning a business is to provide the community with different goods and services. This makes nearly every local business license applicant eligible for the State Transaction Privilege Tax License. You must acquire this and other local business licenses before you can conduct any taxable services in Arizona, including operating an online business.
Local Licenses and Permits
Because Arizona doesn’t offer a statewide business operating license, it’s up to each individual town and city to decide whether company owners need a local business license. Visit your local business license office to learn more about the city’s requirements.