AZ Business License Basics
If you have a business in Arizona you are required to have a license to operate. There are various types of Arizona business licenses and permits that are required by various government entities at federal, state and local levels. An operating license is the basic type of business license that most all businesses will be required to have.
Each level of government has specific regulations and requirements that has to be met before a business can get a license. If you don’t know the licensing rules in Arizona and follow them it could result in expensive fines and putting your business in jeopardy.
Types of Business Licenses in Arizona
Federal Business Licenses – The federal government has a number of agencies that regulate and supervise business activities. If your business participates in any one of these federally regulated activities you will need to get a federal business license.
Activities that'll be required to get a federal business license include:
- Alcohol manufacturing, importing and sales
- Agriculture
- Firearm dealing, importing and manufacturing
- Ammunition and Explosives dealing, importing and manufacturing
- Aviation
- Wildlife related activity
- Mining
- Drilling
- Commercial fishing
- TV and radio broadcasting
- Trucking
State Business Licenses – Many Arizona businesses must obtain some sort of state business license so as to legally operate. At the minimum a business should get a professional or occupational license. Arizona business licenses are typically used for tax purposes.
Local Business Licenses – Local Arizona governments and municipalities also grant business licenses. All businesses will be required to get some good type of local business license in order to operate in Arizona.
Permits – Permits are more specific to a certain kind of business within an industry. Permits have a wide variety of purposes from parking to product sales.
How to Get a Arizona Business License
The steps you will have to take to obtain a business license in Arizona will vary depending on which type of business license you need to get. It doesn't matter what type of license you are hoping to get you will have to fill out application form(s) and supply detailed information about your business.
If you are starting a business or expanding your business you will have numerous forms to fill out. Be ready to supply your Employer Identification Number (EIN).
The SBA (Small Business Administration) has great online tools for helping business owners decide exactly what type of Arizona business licenses they should get, links to websites, applications and instructions. If you’re just starting a business and need guidance on licensing, the SBA is the perfect place to find out more.
Maintaining Your Arizona Business License
Once you get your Arizona business licenses and permits you must still maintain them every year to keep them up to date. The guidelines below are recommended if you want to ensure your business license is in good standing.
- Make copies of your business licenses and permits.
- Track when licenses and permits need to be renewed.
- Follow the regulations for displaying your business license.
- If you intend to change or expand your business be sure to verify whether you need additional permits or business licenses.