Starting a Business in Arizona

Arizona is one of the hottest places to start a business right now. You could be a looker looking for the perfect place to manage and register your new business, or you could be an Arizona resident looking to show your neighbors what you can do.

WalletHub recently ranked Arizona as one of the top 10 places to start a small business, so if you’re looking for a great place, look no further. If you were born there, consider that a sign. Let’s see what the local laws and regulations are to help you get started.

Choose an entity

First, you will need to choose your business entity. It’s a choice that will impact many legal and tax issues, so you better do your homework. You have 3 options: Sole Proprietorship, Limited Liability Company (LLC), and Corporation.

They each have their own set of pros and cons, so a consulting agency or proper research could go a long way in deciding which is best for you. Short, Individual company pretty much equates you to your business and makes you the same legal entity, which means your personal and business assets are the same when it comes to taxes. It’s optimal for a one-man show, so if you’re a freelancer working from home, you probably won’t have to look any further. SARL is not for lone wolves and offers some benefits including liability protections. This means that you are not the same entity as your company and if it encounters problems, it will not drag you down with it.

Finally, a society is the best option if you have big expansion plans in the future. However, be careful, and only if you are serious about it, because the necessary paperwork will definitely require expert help.

Choose and save a name

The next step is to choose the right name and save it. This will depend on the type of entity you’ve decided to go with, and you should do some research to make sure no one has used that name to avoid legal issues. This is where some local institutions come in. Doing an entity search on Arizona Corporation Commission is the best way to make sure your name is available. If you are planning to create a website for your business, which is advisable in most cases, also be sure to check if the domain is also available.

If you choose to use LLC as an entity, your business name will need to end in LLC, and if you have opted to run a corporate empire, you will also need to disclose this in the name by including legal terms like inc . body and ltd.

Find a way to stand out

Finding a unique name isn’t the only authenticity move you’ll have to worry about. In today’s market, it’s very important to stand out from the crowd and avoid being the same, but it all depends on what you’re trying to accomplish. If you’re in a corporate world, blending in and avoiding extravagance is probably your best bet. But there are subtle ways to stand out and draw attention to you and your business and fit in at the same time. For a corporate design, you can always add a pop of bright color or sparkles to your typical default blues and grays. Fashion-wise, you don’t have to look like Lady Gaga for anyone to notice.

Depending on your business, this could be a really bad idea. But a designer piece of clothing or jewelry can go a long way and make you recognizable in the crowd of pencil skirts and navy ties. If you’re a man, your own special Rolex or a Patek Phillipe might be the only signature piece you’ll need. Simply visit a local watch store and look for the piece that best tells your story and that of your brand.


Funding is probably Arizona’s strongest asset and the reason people choose to run their businesses there. In 2021, the American Rescue Plan Act allocated $8 million to help small businesses recover from the pandemic-induced crisis. The result was PHXbiz Grants, a program developed by the Phoenix City Council that now awards up to $15,000 to each new business for deductible expenses. Not bad. When it comes to loans, the rules are pretty much the same in every state, which means you’re at the mercy of your own bank. An SBA loan is a good option that could help secure that much-needed bank loan.

You may also consider applying for equipment loans if you have a good credit rating and your business qualifies for something like this.

Obtain the correct permits and licenses

The first thing you will need to do to gain access to legal protections and licenses is to register your business. In Arizona, you will need to select a statutory agent to be eligible for registration. You will also need to file your registration papers, and the amount and type of documents needed will depend on the type of entity you opt for. The ACC can also help you, but you will need to create an eCorp account. To learn more, check out this local resources page which may have more details for the specific type of business you are interested in.

When it comes to permits and licenses, there is no general plan or option in Arizona, and most will depend on the specific job you are doing. Either way, if you have the documents mentioned above, getting them should be a breeze.

You now know the basics of starting a business in Arizona. It’s a good time for small businesses in this region, so be sure to seize the opportunity. Before doing so, of course make sure that the name, entity and company are properly registered, that you have the correct permits and documents and, of course, that you do not have an identity crisis of brand. These are just the basics, so if you want to get serious and dive deeper into the subject, follow some of the anchors to access the right resources.

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