Define the activity and owners
Write down what you sell, where work happens, who owns it, whether you hire, and which professional or regulated activities may apply.
State + local sequence
Starting a business
A plain-language path through entity decisions, Arizona filings, tax registration, city rules, insurance, and recordkeeping.
The direct answer
Start with the activity, owners, liability, tax treatment, location, and licensing needs. Forming an entity is one step, not the entire business setup.
Practical sequence
Do this in order.
Choose a structure with advice when needed
Sole proprietorship, LLC, corporation, partnership, and nonprofit choices affect liability, tax, administration, and fundraising differently.
Use the Arizona Corporation Commission
The Commission is the official filing starting point for Arizona LLCs and corporations. Verify name, statutory agent, publication, and filing requirements there.
Official starting point: Arizona Corporation CommissionRegister applicable taxes
Arizona’s transaction privilege tax is imposed on vendors for the privilege of doing business. Whether a license is needed depends on the activity and jurisdictions.
Official starting point: Arizona Department of Revenue: TPTCheck city, county, profession, and location
Zoning, home occupation, signage, food, construction, health, liquor, professional, and other requirements vary. Verify every relevant authority.
Set up operations
Separate banking, bookkeeping, contracts, insurance, payroll, privacy, accessibility, safety, and record retention before relying on revenue.
Decision criteria
Compare these before choosing.
- Owner count, control, and liability
- Federal and state tax treatment
- Employees, contractors, and payroll
- Physical location, home occupation, and zoning
- Regulated activities, permits, and professional licensing
Common mistakes
What usually creates rework.
- Assuming an LLC is a license to operate
- Using a generic sales-tax explanation instead of Arizona TPT rules
- Ignoring city and county requirements
- Mixing personal and business records or money
- Selecting tax treatment without qualified advice
Field checklist
Leave with something usable.
Describe activity, owners, location, and hiring plan
Check name and entity filing requirements
Obtain federal EIN if applicable
Determine TPT, withholding, unemployment, and local registrations
Verify zoning, professional, health, safety, and permit rules
Set up banking, books, insurance, contracts, and renewal calendar
This is general process guidance, not legal, tax, accounting, licensing, employment, or insurance advice.
Source desk
Verify the part that can change.
Last reviewed July 23, 2026. Open the managing authority before making a consequential plan.