Starting a Business in Arizona: 10 Practical Steps
Based on guidance from the Arizona Corporation Commission, with practical context added
If you’ve searched “how to start a business in Arizona,” you’ve likely found the Arizona Corporation Commission’s Ten Steps outline. It’s accurate. It’s thorough. And it can feel overwhelming when you’re actually trying to build something at the same time. So below, we’re walking through those same ten steps, in the same order, keeping every official requirement intact, but adding context so you understand what each step means in real life. Because forming the entity is one part. Building something sustainable is the bigger picture.
1. Choose A Business Name
Choosing a name feels creative, but it also plays a big role in how customers find you.
The Arizona Corporation Commission recommends searching to see whether others are already using the name. A clear, distinctive name helps avoid confusion and makes it easier for customers to recognize and locate your business.
Check:
• Search engine results (Google, Bing, etc)
• Domain availability
• Social media handles
2. Purchase A Domain Name (or Wait Until Steps 3-5 Are Complete)
Research available website names through a domain registrar such as GoDaddy. Aim for something short, memorable, and easy to spell.
If your website will match your entity name, you can purchase the domain now or wait until after confirming name availability through the Arizona Corporation Commission in Steps 4 and 5.
When purchasing, consider introductory pricing versus renewal rates. Also think ahead about how the domain will connect to your website builder (such as Squarespace, Wix, or WordPress), e-commerce platform (such as Shopify - further guide at the end), or email provider.
Securing the domain early can prevent someone else from claiming it, but make sure your legal name aligns before committing too far.
3. Choose an Entity Type
Now you decide how your business will legally exist.
Arizona recognizes several entity types:
Sole proprietorship
You operate alone, and the business isn’t legally separate from you.Partnership
Two or more people share ownership and responsibility.International business
Foreign businesses with activities in the U.S. or domestic businesses with activities outside the U.S.Corporation
A more formal legal structure that’s separate from its owners and may make sense for certain long term goals.Limited Liability Company or LLC
A flexible structure that helps protect your personal assets from business liabilities while still staying relatively simple to manage
Note, there are additional
S Corporation
Corporations that elect to pass corporate income, losses, deductions, and credits through to shareholders for federal tax purposes.C Corporation
The default federal tax treatment for corporations, where the business is taxed separately from its owners.501(c)(3)
Refers to a nonprofit organization that has received federal tax-exempt status.
It’s important to understand that “S” Corporation, “C” Corporation, and “501(c)(3)” are federal tax designations, not Arizona entity types.
In Arizona, you form a corporation, nonprofit corporation, or LLC first, and then elect federal tax status separately if applicable.
For example, a business may be formed as an Arizona LLC but elect to be taxed as an S corporation with the IRS.
C Corporation is the default federal tax treatment for corporations, where the business is taxed separately from its owners.
501(c)(3) refers to a nonprofit organization that has received federal tax-exempt status.
An accountant can advise you on tax issues. An attorney can advise you on liability and structure. The Arizona Commerce Authority Small Business Services website is also a helpful resource.
Many first-time founders choose an LLC because it offers flexibility and liability protection. That works well in many situations, but the right choice depends on where you’re headed, not just what’s common.
4. Check Name Availability
Once you’ve selected a name and entity type, check availability through:
This confirms whether any corporations, LLCs, or trade names are already using your name.
Navigate under File → Name → Check Name Availability.
This confirms whether any corporations, LLCs, or trade names are already using your name.
Even if your broader search looked clear, this is the database that determines whether you can legally file.
You’re not just checking for legal conflicts. You’re checking whether the name is usable long term.
If you’re considering trademark protection, that’s a separate federal process and we have some Intellectual Property contacts if needed. It’s not required to form your business, but depending on your goals, it may be worth exploring.
The key here is simple: don’t invest heavily in branding until you’re confident the name works legally and practically.
5. (Optional) Secure the Name or Move Forward
If the name is available, you have three options.
You can reserve the name through the Arizona Corporation Commission. A name reservation is valid for 120 days and holds the entity name while you prepare your formation documents.
You can register the name as a trade name through the Arizona Secretary of State. A trade name registration is effective for five years. Trade names are handled by the Secretary of State, not the ACC.
There are legal considerations as to why you might want a registered trade name, so consulting with an intellectual property attorney may help you decide.
If you own a registered trade name, you do not need a separate name reservation. The trade name effectively holds the name, and you can form your entity under that name as long as you own the trade name.
Or, you can skip directly to filing your formation documents. This step mainly comes down to timing. If you need time to prepare, the reservation gives you breathing room
6. File with the Arizona Corporation Commission
This is where your business becomes official.
Submit your formation documentation with the Arizona Corporation Commission (ACC) The fastest and most convenient method is filing online.
If forming an LLC, submit Articles of Organization. If forming a corporation, submit Articles of Incorporation. All forms and filing options are available through the Commission’s website.
Your formation documentation must be examined and approved by ACC staff. If approved, you will receive an approval letter with additional instructions. If rejected, the letter will instruct you on how to resubmit the paperwork.
Expect this process to take multiple weeks. You may choose to wait for approval before completing Steps 7 through 10.
Planning around this timeline prevents unnecessary stress if you’re trying to launch on a specific date.
7. Register for Arizona Transaction Privilege Tax (Sales Taxes)
If you plan to sell goods or certain services, you will likely need to complete a Transaction Privilege Tax application with the Arizona Department of Revenue.
Review the ADOR website (https://www.azdor.gov) and the Arizona Commerce Authority Small Business Services website (https://www.azcommerce.com) for more information.
To apply:
a. Complete a JT-1 form to apply for a TPT license
This can hypothetically be done online: https://www.aztaxes.gov/Home/Page
InterLink recommends going in person to the ADOR. They’re extremely helpful and everything often goes faster, especially if you bring cash for the license fee
b. Pay the licensing fee when submitting the JT-1
The amount is based on page 4 of the JT-1 form
8. Register With Your City or County
Because the Arizona Corporation Commission does not issue business or occupational licenses, you'll need to register the business entity with the city in which the business is located, or with the county if you are in an unincorporated area.
The Arizona Commerce Authority Small Business Services website includes links to additional tax and licensing resources. Please note that local requirements vary, so check directly with your municipality.
9. Obtain a Federal EIN or TIN
A Taxpayer Identification Number (TIN) is used by the Internal Revenue Service in administering tax laws. While people are given SSNs (Social Security Numbers) as their TIN, businesses are typically identified by an EIN (Employer Identification Number), sometimes referred to as a Federal Tax Identification Number or FIN.
Business owners will typically need an EIN to open a business bank account and manage federal tax reporting.
Apply through the IRS website: https://www.irs.gov/businesses/employer-identification-number
The Arizona Commerce Authority website also includes additional tax-related resources.
10. Open a Business Bank Account
Open a business account with your bank or credit union.
Different financial institutions offer different benefits. If you already have an established relationship with a bank, they may be able to assist you more quickly.
Many accounts can be opened online, but going in person can help you better understand what your institution offers.
One important note: the Arizona Corporation Commission will not accept temporary checks that do not have a pre-printed name and address. If you obtained your account before filing your entity with the ACC, you may need to pay filing fees through an established account or via cash.
Separating business and personal finances from the start makes accounting cleaner and protects you legally.
Laying the Groundwork
Setting up your business correctly from the beginning can feel like a lot, but each step builds a stronger foundation. When your legal structure, tax registration, and financial systems are in place, you’re free to focus on serving customers and growing with clarity and confidence.
If you’re building something new, especially a physical product, remember that legal formation is only one piece of the process. Planning, design, and long-term strategy often unfold alongside these early decisions.
Taking the time to set things up properly now makes everything that follows more stable, more efficient, and far less stressful.
What Comes After Formation
Once your entity is formed and your tax registrations are in place, the next step is setting up the operational side of your business so customers can find you and you can start making sales.
No matter what your business is, creating even just a simple website is crucial. If you’re launching an online store, you'll want to configure payments, inventory, tax settings, shipping, policies, and your domain.
To make that process smoother, we created a Shopify Store Setup Checklist that walks through everything you’ll need before you go live with your new business.
Resources
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Arizona Corporation Commission 1300 W. Washington Street, Phoenix, AZ 85007 602-542-3026 ecorp.azcc.gov
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Arizona Secretary of State Capitol Executive Tower 1700 W. Washington Street, Suite 103 Phoenix, AZ 85007 602-542-6187 azsos.gov
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Arizona Department of Revenue 1600 W. Monroe Street, Phoenix, AZ 85007 602-255-3381 or 800-829-4933 azdor.gov
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Arizona Commerce Authority 333 N. Central Avenue, Suite 1900 Phoenix, AZ 85004 602-845-1200 or 800-542-5684 azcommerce.com
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Arizona Registrar of Contractors Capitol Executive Tower 1700 W. Washington Street, Suite 105 Phoenix, AZ 85007 602-542-1252 or 888-271-9286 azroc.gov
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Internal Revenue Service 4041 N. Central Avenue, Phoenix, AZ 85012 602-636-9199 or 800-829-4933 irs.gov/businesses
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SCORE https://www.score.org/greaterphoenix
Arizona Small Business Association https://www.asba.com/
Venture Café https://venturecafephoenix.org/
