The Complete Guide to Arizona Business Licenses
Arizona does not issue a general state business license. Instead, most businesses need a Transaction Privilege Tax (TPT) license — Arizona's version of a sales tax permit — plus any city license and a professional license for regulated work. This guide explains each step for a new Arizona business.
Step 1: Form the LLC
File Articles of Organization with the Arizona Corporation Commission. The state fee is $50 (plus $35 for expedited service), and Arizona LLCs file no annual report. If your statutory agent is outside Maricopa and Pima counties, Arizona also requires publication of a notice. See the Arizona LLC guide for every formation step.
Step 2: Get a TPT license
Any business selling a product or service subject to TPT needs a license from the Arizona Department of Revenue — including home-based businesses and vendors who only sell at special events. Apply online at AZTaxes.gov or with the Arizona Joint Tax Application (Form JT-1/UC-001); you will need your EIN.
- State fee: $12 per location.
- City fees: most cities collect their TPT through the state license, each with its own fee — for example Phoenix, Tempe and Scottsdale charge $50, Glendale $35, and Mesa and Tucson $20, while many smaller towns charge $2 or less.
- Rates: the state rate is 5.6%, plus county and city rates.
- Renewal: TPT licenses are renewed every year.
Your TPT number is also what you use on a resale certificate when buying inventory — see our resale certificate guide.
Step 3: City business licenses
Separately from TPT, some Arizona cities require a general business license or regulatory license for certain activities (for example liquor, massage, secondhand dealers or peddlers). Check with the city where you operate and confirm zoning before you sign a lease.
Step 4: Professional and contractor licenses
Contractors must be licensed by the Arizona Registrar of Contractors before bidding or working on most projects. Many professions — accountants, cosmetologists, real estate agents, nurses and others — are licensed by their own state boards, and alcohol sales are licensed by the Department of Liquor Licenses and Control.
Hiring staff
The same Joint Tax Application registers employers for Arizona withholding and unemployment insurance with the Department of Economic Security.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | Arizona Corporation Commission | $50; no annual report |
| TPT license | Department of Revenue | $12 per location + city fee |
| City business or regulatory license | Your city | Set by each city |
| Contractor or professional license | Registrar of Contractors / state boards | Varies |
Frequently Asked Questions
Does Arizona require a business license?
Arizona has no general state business license. Most businesses need a Transaction Privilege Tax (TPT) license from the Department of Revenue, plus a city license or professional license where required.
How much is a TPT license in Arizona?
The state fee is $12 per location, plus each city's fee — for example $50 in Phoenix, Tempe and Scottsdale, and $20 in Mesa and Tucson.
Do I need a TPT license for a home-based business?
Yes, if you sell taxable products or services. Home-based businesses apply for a TPT license using the home address as the business address.
How much does it cost to form an LLC in Arizona?
The Articles of Organization cost $50 (plus $35 for expedited service), and Arizona LLCs do not file an annual report.
Does an Arizona LLC need a business license?
Forming the LLC registers the company but is not a license to operate. Most LLCs still need a TPT license and any city or professional license their activity requires.