Start a Business in Arizona
Costs, permits, taxes, and requirements for AZ.
- Cost rank
- 28th of 50
- 97% of the national average · tied with 1 other state
- State income tax
- 2.5%
- Charged on top of federal income tax
- Sales tax
- 5.6%
- You collect it on taxable sales and remit it to the state
- LLC filing fee
- $50
- One-off, paid to the Secretary of State · 3rd cheapest of 50 (median $100)
Where Arizona sits on cost
Cheapest third to most expensive third, by startup cost index. Hover a state for its index and rank.
What's different in Arizona
Arizona's transaction privilege tax is levied on the seller for the privilege of doing business, not simply collected from the buyer, and the distinction matters when a contract is silent about tax: the liability is the business's either way. Cities license and levy separately here, so a business working across the Phoenix area can need several city registrations for the same trade. New LLCs outside the two largest counties still publish a formation notice, a step most states have dropped. Heat is an operating cost as well as a working condition: cooling, vehicle wear and summer scheduling all show up in the numbers.
- The tax is yours, not the customer's
- Under the transaction privilege tax the seller owes it, whatever the invoice says.
- City-by-city licensing
- Working across a metro can mean a separate registration in each city you serve.
- Publication outside the big two counties
- New LLCs elsewhere in the state still run a formation notice; the two largest counties are handled online.
- Summer is a line item
- Cooling, early starts and equipment strain in the hot months belong in the operating budget.
Business Guides for Arizona
All 53, cheapest first. Ranges are what that business actually costs in AZ.
Under $10K 20
- Notary Services $285 – $1,900
- Social Media Management $475 – $2,900
- Pet Sitting $485 – $2,910
- Web Design $475 – $4,850
- Dog Walking $485 – $4,850
- Tutoring $475 – $9,700
- E-Commerce $485 – $9,700
- Window Cleaning $970 – $9,700
- Graphic Design $975 – $9,700
- Bookkeeping $1,950 – $9,700
- Personal Training $2,000 – $10,000
- Handyman $2,000 – $12,000
- House Painting $1,940 – $14,550
- Pool Cleaning $1,940 – $14,550
- Tax Preparation $1,950 – $14,550
- Cleaning Business $2,000 – $15,000
- Photography $2,000 – $15,000
- Vending Machine $2,850 – $14,250
- Lawn Care $3,000 – $15,000
- Pressure Washing $3,000 – $15,000
$10K – $50K 18
- Consulting $975 – $19,400
- Event Planning $1,950 – $19,400
- DJ Service $2,900 – $19,400
- Interior Design $1,940 – $24,250
- Carpet Cleaning $4,850 – $24,250
- Massage Therapy $4,850 – $24,250
- Mobile Spa $7,600 – $23,750
- Wedding Photography $9,700 – $38,800
- Junk Removal $4,850 – $48,500
- Auto Detailing $5,000 – $50,000
- Landscaping $5,000 – $50,000
- Pest Control $9,700 – $48,500
- Pet Grooming $4,850 – $72,750
- Catering $9,700 – $72,750
- Florist $9,700 – $72,750
- Tree Service $9,700 – $72,750
- Electrician $14,550 – $72,750
- Plumbing $14,550 – $72,750
$50K and up 15
- Bakery $500 – $100,000
- Yoga Studio $14,550 – $97,000
- Moving Company $19,000 – $95,000
- HVAC $19,400 – $97,000
- Barber Shop $23,000 – $110,400
- Nail Salon $27,600 – $138,000
- Hair Salon $32,200 – $138,000
- Gym $46,000 – $138,000
- Food Truck $50,000 – $180,000
- Ice Cream Shop $48,500 – $291,000
- Coffee Shop $76,000 – $285,000
- Daycare $4,850 – $485,000
- Car Wash $48,500 – $485,000
- Laundromat $97,000 – $485,000
- Restaurant $161,000 – $460,000
Get a personalized cost estimate for Arizona
Calculate CostsBusiness Requirements in Arizona
Register Your Business
File with Arizona Secretary of State. LLC fee: $50
Get Business License
Most cities require a general business license ($50-$300).
Get EIN
Free from IRS. Required for bank accounts and taxes.
Register for Sales Tax
State rate: 5.6%. Local taxes may apply.
Get Business Insurance
General liability protects from lawsuits. Often required by landlords.