Phoenix, AZ Business License Guide

Last updated: August 2025

This is a practical, no-fluff guide for getting legal to operate in Phoenix, AZ. It gives you the exact agencies, forms, links, timelines, and common pitfalls—plus Plan B options if something stalls.

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Quick help (start here)

• If you will sell, lease, or rent taxable products or services in Phoenix, you must get an Arizona Transaction Privilege Tax (TPT) license and add “Phoenix” as a location on your state license. Apply online at the Arizona Department of Revenue’s AZTaxes portal. Source: Arizona Department of Revenue – Transaction Privilege Tax (overview) and AZTaxes.gov – Online Registration (apply).
• Phoenix does not issue a general “city business license.” Phoenix licensing is mostly state (TPT), county health permits for food, and city permits for certain regulated activities and building/occupancy/fire permits. Check the City’s Planning & Development resources for location-specific approvals. Source: City of Phoenix – Planning & Development (permits, zoning, occupancy).
• Most Phoenix food businesses need Maricopa County Environmental Services permits before opening, plus state TPT if selling taxable items. Source: Maricopa County Environmental Services Department (MCESD) – Food Safety (permits/plan review).
• Contractors in Phoenix must hold a state license from the Arizona Registrar of Contractors; building permits and inspections are handled by the City of Phoenix. Source: Arizona Registrar of Contractors (ROC) and City of Phoenix – Permitting.
• Register your legal entity with the Arizona Corporation Commission, get an EIN from the IRS, and then register for TPT/withholding/UI as needed through Arizona Business One Stop. Source: Arizona Corporation Commission – eCorp and Arizona Business One Stop.

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What you absolutely need to know first (the 60‑second answer)

• Phoenix does not require a general city business license to open your doors. Instead, Arizona’s state-level TPT license is your “sales tax” license, and you add Phoenix to your license if you’re operating in city limits. For many businesses, that’s the key license you need.
• You still must comply with zoning, building, fire, signage, and any special city permits for your use (especially if you alter a space, put up signs, or run a regulated activity such as an alarm business, adult entertainment, secondhand dealer, or certain mobile vending).
• Food, beverage, and other health-related operations are mostly permitted by Maricopa County Environmental Services.
• If you hire, you must handle employer registrations (withholding, unemployment, workers’ comp) and E‑Verify.
• Expect paperwork to flow through three layers: state (tax and entity), county (health), and city (zoning/permits/fire/regulated activities).

Reality check: This is not “one form and done.” You may need several approvals that depend on each other in a certain order. Use the tables and checklists below to map your path.

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Phoenix pathways at a glance

Use this to zero‑in on your path before you start forms.

Sources:

• Arizona Department of Revenue – TPT overview and classifications: Arizona Department of Revenue – Transaction Privilege Tax.
• Maricopa County Environmental Services (food): MCESD – Food Safety.
• Arizona Registrar of Contractors: ROC – Licensing.
• City of Phoenix Planning & Development: Permits & Plan Review and Planning & Zoning.

Note: Whether a service is taxable depends on classification rules set by ADOR. Always verify your activity’s taxability using ADOR’s resources.

What to do if this doesn’t work:

• Call or message the Arizona Commerce Authority’s Business One Stop for navigation help: Arizona Business One Stop.
• Get taxability clarification directly from ADOR: ADOR – Contact.

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Step 1: Verify your location and zoning in Phoenix (before you sign a lease)

• Confirm your address is inside Phoenix city limits (many “Phoenix” mailing addresses are actually in other cities or unincorporated areas). City boundaries change over time.
• Check zoning for your use. Some uses are permitted outright; others need a Use Permit or a variance. Home-based businesses must meet home occupation standards.
• Ask if you need a Certificate of Occupancy (C of O) for your space, especially if changing use (e.g., office to retail) or doing buildout.
• If you need signs, understand which types are allowed at your site and whether a sign permit is required.

Where to do it:

• City of Phoenix – Planning & Development: Planning & Zoning and Permits.
• For permits and plan review: Phoenix – Development/Permits.
• Fire code questions and inspections: Phoenix Fire Department – Fire Prevention.

Reality check:

• Zoning surprises and C of O issues delay openings more than any other step. Do this first—before you invest in leasehold improvements.

What to do if this doesn’t work:

• If a location won’t fit your use under current zoning, ask Planning about a Use Permit or alternative sites. Contact: Phoenix PDD – Contact & Services.

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Step 2: Form your legal entity and choose your name

• Pick your structure (LLC, corporation, or sole proprietorship). Many small businesses choose an LLC for liability reasons. Arizona does not require an attorney, but legal advice is wise.
• Create the entity (if LLC or corporation) with the Arizona Corporation Commission (ACC). You can file online.
• If you operate under a name different from the entity’s true name, file a trade name (DBA) with the Arizona Secretary of State. This is optional but helps with banking and branding.
• For Phoenix-area LLCs and corporations (Maricopa County), there is no newspaper publication requirement after formation. Publication requirements vary by county; Maricopa and Pima are exempt.

How to apply and fees:

• Arizona Corporation Commission – eCorp (LLC/corporation filings and fees): ACC eCorp.
• ACC fees for Articles of Organization (LLC): typically $50 standard filing; expedited service is an additional $35 (optional). Always verify current fees at ACC – Fee Schedule.
• Trade name (DBA) registration: Arizona Secretary of State – Trade Names & Trademarks. See the SOS fee schedule on that page for current amounts.
• EIN from IRS: $0 when you apply directly with the IRS online. Source: IRS – Apply for an EIN.

Reality check:

• Names can conflict. Do an ACC entity name search and Secretary of State trade name search before printing signs.

What to do if this doesn’t work:

• If your chosen name isn’t available, pick a compliant variant or file a DBA that matches your branding. Ask ACC/SOS for naming rules on their sites above.

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Step 3: Register for TPT (Arizona’s “sales tax”) and add Phoenix to your license

If you sell taxable goods or services, Arizona requires a Transaction Privilege Tax (TPT) license. The state collects city taxes for Phoenix through the same license (centralized since 2017).

• Apply for a TPT license through AZTaxes.gov.
• Add your Phoenix location(s) to your TPT license. You will select “Phoenix” in the application to ensure your account is coded to file city tax.
• The TPT license fee is $12 per location. If you have multiple locations, it’s $12 each. Verify the current fee at ADOR before paying. Source: Arizona Department of Revenue – TPT Licensing and online application at AZTaxes.gov.
• After you apply, ADOR assigns your license number and filing frequency.

Filing and due dates:

• ADOR’s standard due date for monthly TPT returns is the 20th of the month following the reporting period. Electronic filing may qualify for an extended due date (often the last day of the month). Verify current due date rules at: ADOR – TPT Filing & Due Dates.
• Rates vary by activity, and Phoenix has its own city rate layered on the state rate. Always use ADOR’s official tax rate tools: ADOR – Tax Rate Resources.

Real‑world example:

• A Phoenix boutique selling clothing: applies for TPT, adds Phoenix, collects state+county+city tax on sales, files monthly (or as assigned), and pays. If they add an online store shipping to other AZ cities, they add those city locations to the TPT license and collect accordingly.

What to do if this doesn’t work:

• If your application is stuck, contact ADOR directly: ADOR – Contact. If you’re unsure about taxability, request guidance from ADOR or consult a CPA experienced in Arizona TPT.

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Step 4: Get any industry-specific licenses or permits (this is where most surprises happen)

The most common regulated categories for Phoenix-area businesses are below. Start with the one that applies to you.

Food, beverage, and mobile food

• Most brick‑and‑mortar restaurants, cafes, caterers, and food trucks must obtain permits from Maricopa County Environmental Services (MCESD). This includes plan review for new or remodeled establishments.
• Food trucks need commissary arrangements and health permits, and may need city right‑of‑way or event permits depending on where they operate.
• Alcohol service requires state liquor licensing through the Arizona Department of Liquor Licenses and Control (DLLC), plus local approval steps.

Where to apply:

• MCESD – Food Safety (permits, plan review, mobile units): MCESD – Food Safety.
• Arizona DLLC – Liquor licensing (bars, restaurants, retail, special events): Arizona Department of Liquor Licenses & Control.
• City of Phoenix – Permitting (buildout, occupancy, signage): Phoenix – Development/Permits.

Fee notes:

• County food permit and plan review fees vary by facility type and scope; check MCESD’s fee schedule on the Food Safety site.

What to do if this doesn’t work:

• If health plan review is stalled, request a pre‑submittal meeting with MCESD. If your site fails fire or building inspections, contact Phoenix PDD/Fire to clarify corrections and sequencing.

Contractors and trades

• Arizona requires contractors to be licensed by the Arizona Registrar of Contractors (ROC). Phoenix issues permits per job site; there is no separate general “business license.”
• ROC classification and bonding requirements depend on your trade and scope.

Where to apply:

• ROC licensing: Arizona Registrar of Contractors.
• Phoenix building permits: City of Phoenix – Permits.

Fee notes:

• ROC fees and bonds depend on license class; see ROC’s official fee schedule and bond matrix on their site.

What to do if this doesn’t work:

• If you’re unsure which ROC classification you need, contact ROC licensing. For permits, schedule a preliminary meeting with Phoenix PDD.

Childcare and health facilities

• Many health-related facilities and childcare providers need state licensing through the Arizona Department of Health Services (ADHS), in addition to local building/fire approvals.

Where to apply:

• ADHS – Licensing (childcare, health facilities): Arizona Department of Health Services – Licensing.
• Phoenix Fire Prevention: Phoenix Fire – Prevention.

What to do if this doesn’t work:

• Ask ADHS for a pre-licensing walkthrough or checklist. Coordinate early with Phoenix Fire for life-safety requirements.

Regulated businesses (police or city licensing)

Some activities require special city approvals or police-issued permits (e.g., adult entertainment, secondhand dealers, private patrol, massage establishments, and alarm permits). Always verify with the City if your activity is regulated.

• City of Phoenix (general permits/licensing start page): City of Phoenix – Permits & Licenses (Planning & Development). For police-regulated activities, start with Phoenix Police’s public resources or contact the department to locate the relevant unit via the City’s site.
• Alarm users may need alarm permits; check with Phoenix Police for alarm user permits and false alarm rules.

What to do if this doesn’t work:

• If you can’t find your category, call the City’s main information line and ask to be routed to the licensing or permitting unit for your activity: City of Phoenix – City Services (site directory and “Contact Us”).

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Step 5: Employer registrations (payroll tax, unemployment, workers’ comp, and E‑Verify)

If you will hire employees in Arizona, complete these steps.

• Register for Arizona employer withholding (state income tax withholding) through ADOR or Business One Stop.
• Register for unemployment insurance (UI) tax with the Arizona Department of Economic Security (DES) through Business One Stop.
• Obtain workers’ compensation insurance if you have employees (Arizona requires most employers to carry coverage).
• Arizona law requires employers to use E‑Verify to confirm work eligibility for new hires (Legal Arizona Workers Act).
• Report new hires to the state New Hire Reporting Center.

Where to apply:

• Arizona Business One Stop (central registration): businessonestop.az.gov.
• Withholding: Arizona Department of Revenue – Withholding.
• Unemployment (employers): Arizona DES – Employer Unemployment Insurance.
• Workers’ compensation (requirements and carriers): Industrial Commission of Arizona.
• E‑Verify: U.S. DHS – E‑Verify. Arizona’s requirement: see Arizona statutes and state guidance linked via DES and the Attorney General’s office.
• New hire reporting: Arizona New Hire Reporting – DES.

Reality check:

• Worker classification (employee vs. contractor) is a common audit issue. When in doubt, get advice from a labor attorney or CPA.

What to do if this doesn’t work:

• Use the Arizona Small Business Development Center (SBDC) for free help on registrations: Arizona SBDC Network.

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Step 6: Local permits and approvals you’re likely to need in Phoenix

• Certificate of Occupancy (C of O) for changes in use or after significant work.
• Building permits for remodels/tenant improvements.
• Fire inspections and permits for hoods, sprinkled systems, hazardous materials, and assembly uses.
• Sign permits for exterior signage.
• Right‑of‑Way permits for work in streets/sidewalks, A‑frames, or outdoor dining in public areas.
• Water/Wastewater pretreatment approvals for grease interceptors (restaurants) or industrial users.

Where to apply:

• City of Phoenix – Planning & Development (permits, inspections): Phoenix – Development/Permits.
• Phoenix Fire – Fire Prevention permits and inspections: Phoenix Fire – Prevention.
• City of Phoenix – Water Services Pretreatment (grease/industrial): Phoenix Water – Pretreatment.
• City of Phoenix – Streets/Right‑of‑Way: use the City site directory to locate current ROW permit pages: City of Phoenix – Departments.

What to do if this doesn’t work:

• Request an early “project start” consultation with Phoenix PDD to sequence building, fire, and signage. Ask for checklists and typical turnaround times for your project type.

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Core registrations and typical sequence (table)

This table helps you time your steps and budget. Always verify current fees on each agency’s site.

Sources: linked agency pages above.

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Employer obligations at a glance (table)

Reality check:

• Missed registrations cause penalties and back interest. Set up accounts before your first payroll run.

What to do if this doesn’t work:

• The SBDC can help sequence employer registrations: Arizona SBDC Network.

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Phoenix-regulated activities and who to contact (table)

Many city-regulated activities route through department-specific units. Use official department pages to confirm current forms and fees.

Tip:

• If you cannot locate your category, call the City’s main line from the department directory and ask for the unit that licenses your activity. Start at: City of Phoenix – Departments.

What to do if this doesn’t work:

• Book a free business advising session via the SBDC for guidance: Arizona SBDC Network.

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Document checklist (table)

Have these ready to speed up applications and inspections.

What to do if this doesn’t work:

• Ask your assigned plan reviewer or inspector for a pre‑submittal checklist; they usually have specimen packets for your use case.

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Timelines and dependencies (table)

Every buildout is different, but dependencies usually look like this:

What to do if this doesn’t work:

• Schedule a project coordination call with Phoenix PDD and MCESD to align requirements and inspection order.

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Real‑world examples (Phoenix)

• Retail clothing boutique in central Phoenix:
  • Formed an LLC, obtained an EIN, filed for a TPT license adding Phoenix, got a sign permit for a wall sign, and no county health permit (non‑food).
  • Critical steps: verifying that the previous tenant’s use was also retail, making the C of O transfer straightforward; sign permit approved before fabrication.
• Neighborhood coffee shop:
  • Completed MCESD plan review, Phoenix building permits for plumbing and hood, fire inspection for suppression, TPT license for taxable prepared food.
  • Critical steps: scheduling inspections in the right order and allowing lead time for hood fabrication.
• Electrical contractor:
  • Obtained ROC license, pulled Phoenix permits for individual projects, and registered for withholding/UI for employees.
  • Critical steps: ensuring ROC classification matched scope so jobs could be permitted without delays.

What to do if this doesn’t work:

• If you hit a plan review bottleneck, ask for a resubmittal checklist with exact code citations and schedule a clarification meeting—this often cuts weeks off rework.

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Taxes and filings you’ll likely touch

• TPT (sales tax): Register with ADOR, collect tax on taxable sales, file based on your assigned frequency. Due dates: monthly filers generally due by the 20th; e‑file may extend to month-end. Source: ADOR – TPT Reporting.
• Withholding tax: If you have employees, register and remit Arizona withholding. Source: ADOR – Withholding.
• Unemployment insurance tax: Register with DES and file/pay UI. Source: DES – Employer UI.
• Federal: Income tax, payroll tax, and possibly excise taxes depending on your activities. Source: IRS – Businesses.

What to do if this doesn’t work:

• For taxability and rate questions, ADOR provides direct assistance. For accounting system setup, consider engaging a local CPA experienced with Arizona TPT.

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Common mistakes to avoid

• Signing a lease before confirming zoning/use and C of O requirements.
• Assuming Phoenix issues a general business license. In Phoenix, the TPT license plus any required city/county permits are your core approvals.
• Skipping ADOR’s taxability check. Not every service is taxable; many products are. Misclassification leads to back taxes.
• Underestimating plan review time for MCESD and Phoenix, especially for kitchens and life‑safety systems.
• Forgetting E‑Verify and workers’ comp when hiring the first employee.
• Ordering signs before getting a sign permit; wrong sizes/materials are a common fail.
• Not adding each city location to your TPT license when you expand or move.

What to do if this doesn’t work:

• Book a free SBDC session and bring your questions and any rejection letters. They’ll help you chart a fix: Arizona SBDC Network.

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Costs and budgeting: what to plan for

• Entity filing: $50 LLC standard filing with ACC; $35 expedited optional. Source: ACC – Fees.
• TPT license: $12 per location. Source: AZDOR – TPT Licensing.
• County health permit & plan review: varies widely by concept and size—check MCESD’s fee schedule for your exact plan and permit category: MCESD – Food Safety.
• City permits (building, fire, signs): fee depends on scope and valuation; Phoenix publishes fee information via Planning & Development and Fire Prevention (links above).
• Insurance: workers’ compensation and general liability costs depend on payroll/class codes and risk.

Tip:

• Build a 10–20% contingency for plan changes after code review (ventilation, fire separation, ADA, grease management).

What to do if this doesn’t work:

• If costs blow past budget during plan review, ask your design professional to propose alternative compliant solutions and meet with reviewers to validate before resubmitting.

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Inclusivity, diversity, and accessibility resources (Arizona/Phoenix)

• Women‑Owned Small Business (WOSB) certification for federal contracting: SBA – WOSB Certification.
• Veteran‑Owned Small Business certification (VOSB/SDVOSB): SBA – Veteran Small Business Certification.
• Disadvantaged Business Enterprise (DBE) for transportation projects (women‑ and minority‑owned): ADOT – DBE Program.
• Arizona MBDA (Minority Business Development Agency) business center: find current Arizona MBDA resources via MBDA’s official site: MBDA – Locate Centers.
• Phoenix‑area SBDC advising (all entrepreneurs; free, confidential): Arizona SBDC Network.
• SBA Phoenix District Office (counseling, loans, events): SBA – Phoenix District Office.
• State procurement vendor registration (to sell to the State of Arizona): State Procurement Office – SPO and the Arizona Procurement Portal (APP).
• City of Phoenix vendor registration and procurement: start from the City’s main site and navigate to Procurement/Vendors: City of Phoenix – Departments.
• Language access: City services pages support multiple languages and interpretation options; use the City’s site directory to access language assistance and accessibility services: City of Phoenix – Accessibility & Services.

What to do if this doesn’t work:

• If you need language support, ask the specific department for interpretation when you schedule. Bring a bilingual advocate from the SBDC or a community partner if helpful.

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FAQs (Arizona/Phoenix specific)

• Do I need a “business license” from Phoenix to open?
  • Typically, no. Phoenix does not issue a general city business license. Most businesses rely on state TPT plus city/county permits applicable to their activity. For your specific activity, verify on the City’s site: City of Phoenix – Planning & Development.
• What is the TPT license fee and where do I get it?
  • The TPT license costs $12 per location. Apply at AZTaxes.gov. Source: Arizona Department of Revenue – TPT.
• When are TPT returns due?
  • Monthly returns are generally due on the 20th of the following month; electronic filing may have an extended due date to month‑end. Verify at ADOR – TPT Reporting.
• Do home‑based businesses in Phoenix need permits?
  • Many home occupations are allowed by right if they meet the City’s home occupation rules (limits on signage, traffic, employees on site, etc.). Check with Phoenix Planning & Development for your address and use.
• Do I need both county and city permits for a restaurant?
  • Yes. MCESD permits the food establishment. Phoenix handles building, fire, occupancy, and signage. Links: MCESD – Food Safety and Phoenix – Permits.
• I only sell services. Do I need TPT?
  • Many services in Arizona are not taxable, but some are (e.g., transient lodging, certain rentals). Confirm your classification with ADOR: ADOR – TPT Overview.
• Where do I register my LLC in Arizona?
  • With the Arizona Corporation Commission (ACC) at ACC eCorp. Standard LLC filing is $50; expedited service is an extra $35. Check the ACC fee schedule for current fees.
• I’m hiring my first employee. What are the Arizona requirements?
  • Register for state withholding (ADOR) and unemployment insurance (DES), obtain workers’ comp, use E‑Verify, and report new hires. Start at Arizona Business One Stop.
• Does Phoenix have special permits for alarms?
  • Alarm users typically need permits and are subject to false alarm rules. Start at the City’s site and navigate to the Police/Alarm unit: City of Phoenix – Departments.
• I’m opening a food truck. Who licenses me?
  • MCESD for health permits; depending on where you operate, Phoenix may require right‑of‑way or event permits, and you’ll need a TPT license for taxable sales. Start with MCESD – Mobile Food and AZTaxes.gov. For city location permits, see Phoenix – Planning & Development.

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What to bring to in‑person counters and inspections

• Government ID, entity documents (Articles, EIN letter), TPT license number.
• Lease and landlord permission letters if approvals require owner sign‑off.
• Plan sets, equipment specs, and prior review comments for resubmittals.
• Proof of insurance (workers’ comp and general liability) where required.

What to do if this doesn’t work:

• If a counter visit stalls, ask for a supervisor or schedule a follow‑up appointment with a specialist reviewer for your case.

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“If this doesn’t work” — Plan B resources (Phoenix/Arizona)

• Arizona SBDC Network (free advising): azsbdc.net.
• Arizona Commerce Authority – Business One Stop: businessonestop.az.gov.
• Arizona Department of Revenue (TPT/tax): azdor.gov.
• City of Phoenix (permitting): phoenix.gov/pdd.
• MCESD (food permits): maricopa.gov – Food Safety.
• ROC (contractors): roc.az.gov.

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Reality checks and warnings

• “No general business license” does not mean “no permits.” Phoenix is strict on building, fire, and signage. Don’t skip them.
• Plan review queues change with season and city workload. Reserve time for resubmittals.
• Sales tax audits can look back several years. If you’re unsure about taxability, get an answer in writing from ADOR or hire a tax pro.
• Buying and installing equipment before getting approvals is a fast way to blow your budget.

What to do if this doesn’t work:

• If your timeline is slipping, triage: open with a reduced scope that is easier to approve, then phase later improvements with new permits.

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Helpful tables you can print

Startup steps by business type (condensed)

Who does what (agency roles)

Deadlines you’ll run into

Budget triggers

Pre‑opening checklist

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What to do after you open

• Keep your TPT filings on time and reconcile your POS with your returns.
• Update your TPT license when you move, add locations, or change ownership.
• Renew or update any regulated permits (alarms, special events, etc.) per their schedule.
• Keep maintenance logs for hoods, sprinklers, and backflow devices; inspectors ask for them.

What to do if this doesn’t work:

• If you receive a notice, respond before the deadline and call the issuing agency. Many issues can be fixed with a quick correction and proof.

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Sources (official)

• Arizona Department of Revenue – Transaction Privilege Tax overview and licensing: ADOR – Transaction Privilege Tax and AZTaxes.gov – Registration.
• City of Phoenix – Planning & Development (permits, zoning, signs, occupancy): Phoenix – Planning & Development.
• Phoenix Fire Department – Fire Prevention: Phoenix Fire – Prevention.
• Maricopa County Environmental Services Department – Food Safety (permits and plan review): MCESD – Food Safety.
• Arizona Corporation Commission – eCorp and fee schedule: ACC eCorp and ACC – Fees.
• Arizona Secretary of State – Trade Names & Trademarks: AZSOS – Trade Names.
• Arizona Registrar of Contractors: ROC – Licensing.
• Arizona Department of Economic Security – Employer Unemployment Insurance: DES – Employer UI; New Hire: DES – New Hire Reporting.
• Industrial Commission of Arizona – Workers’ Compensation: ICA – Workers’ Compensation.
• Arizona Business One Stop: businessonestop.az.gov.

Note: Always review each agency’s pages for current forms, fees, and deadlines.

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About this guide

• Purpose: Give Phoenix business owners a single, practical hub linking directly to official sources and walking you through real‑world steps, costs, and pitfalls.
• Scope: Focused on Phoenix city limits, with state and county layers (Arizona + Maricopa County).
• How to use: Identify your business type in the “Phoenix pathways” table, then follow the step sections in order. Use the checklists and Plan B resources if you get stuck.
• Feedback: If a link changes or a rule updates, check the agency home page and search the program name. Government URLs change, but the department landing pages above will point you to current forms.

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Disclaimer

Laws, policies, fees, deadlines, and processes change. This guide is for general information only and is not legal, tax, or compliance advice. Always verify requirements, amounts, and timelines directly with the relevant agency using the official links provided. If your situation is complex, consult a qualified attorney or CPA licensed in Arizona.