A Simple Guide to Getting Your Company Up and Running in Arizona or anywhere in the US
Starting a business feels exciting, but it also comes with plenty of steps and decisions. This guide breaks down the process into ten straightforward steps so you can move with confidence and clarity.
1. Choose a Name
Start by picking a name for your business. Search the name online to see if anyone else is already using it. If the name is taken or very similar to another business, you could face legal issues later. When in doubt, consult an attorney for guidance on trademark and name-use concerns.
2. Decide on a Domain Name
If you want a website that matches your business name, you can buy the domain now or wait until your business name is officially cleared. Domain names are separate from state registrations, so owning a domain does not give you rights to the business name itself.
3. Select an Entity Type
Choose the structure that fits your needs:
• Corporation
• Nonprofit corporation
• Limited liability company (LLC)
Remember that terms like S-corp, C-corp, or 501c3 refer to federal tax classifications. For formation, you are simply creating a corporation, nonprofit, or LLC. An accountant or attorney can help you understand liability and tax implications.
4. Check Name Availability
Before filing, verify that your desired business name is available in Arizona. Make sure no active corporations, LLCs, or trade names already use it.
5. Secure the Name or Form the Entity
If the name is available, you have a few options:
• Reserve the name through the Arizona Corporation Commission
• Register the name as a trade name through the Arizona Secretary of State
• Skip both and form the entity directly by submitting your formation documents
A name reservation lasts 120 days. A trade name lasts 5 years and also protects the name for your future entity. An attorney can help you decide whether you need a name reservation, trade name, or both.
6. File Your Formation Documents
Submit your Articles of Organization (LLC) or Articles of Incorporation (corporation) to the Arizona Corporation Commission. Once approved, you’ll receive an approval letter with instructions. If the filing is rejected, the letter will explain what needs to be corrected. It’s best to wait for approval before moving on to the next steps.
7. Register with the Arizona Department of Revenue
Depending on your business activities, you may need to apply for a transaction privilege tax license. The Arizona Department of Revenue can guide you on whether your business is subject to this tax.
8. Register for City or County Licensing
Your city or county may require additional business licenses or tax registrations. This step applies whether your business is home-based, mobile, online, or located in a commercial space.
9. Get a Federal EIN or TIN
Apply for an Employer Identification Number (EIN) or Tax Identification Number (TIN) through the Internal Revenue Service. Most businesses need one to hire employees, pay taxes, or open financial accounts.
10. Open a Business Bank Account
Set up a bank account in your business name. If you plan to pay state filing fees by check, make sure the checks include your business name and address. Temporary checks without printed information may not be accepted.