Starting a Business in Arizona

Step by step instructions on how to get your business off the ground as a new legal entity.

Choose a Name

Make sure to search it on the internet to see if other persons are using the name. If others are using the name, you may incur legal consequences if you use the same or very similar name. Consult an attorney to find out the legal consequences of using a name that is owned by or used by others. Also make sure it fits the Arizona Corporation Commissions Naming Standards. Small tip: punctuation symbols aren’t allowed.

| Need help coming up with an idea? Try this Business Name Generator by Shopify

Trade Name / Reserve a Name

Not ready to file your Articles of Organization and form a legal entity? You have options:

What is a Trade Name? Filing a trade name registers a business name for public record. A trade name is similar to a “doing business as” (“DBA”) name, and is not legally required but is an acceptable business practice. A trade name does not grant exclusive rights to a business name, nor is a trade name similar to a corporation or limited liability company (“LLC”). If you want to file a corporation or LLC, you need to file with the Arizona Corporation Commission.

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File with Arizona Corporation Commission

Choose an entity type for the business (corporation, nonprofit corporation, or limited liability company (“LLC”)). Note — “S” corp, “C” corp, and “501c3” corp are only federal tax designations — in Arizona you would just form a corporation or a nonprofit corporation. An accountant and attorney can advise you concerning tax issues, liability, tax, and other issues. However most small home businesses start as an LLC.

File your paperwork with the Arizona Corporation Commission. This is done online at ecorp.AZCC.gov/AzAccount

Register for Tax Identification / Privilege

Banking

Before you can get a bank account with your business name on it you must either have a Registered Trade Name or a Federal EIN with your Articles of Organization/Incorporation already filed and approved.

I recommend to try U.S. Bank’s Business Checking account. The Silver tier is a free account that gets you the basics you need to start a business for free. They have options to grow into as you get more customers/capital/transactions.

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Edit: August 24, 2022 — Azlo Bank closed in 2021 and so here are other options that look equally interesting as online banking options: Novo.co, Bluevine.com, and WaveApps.com (more about Wave below).

Accounting

Looking for a way to keep your expenses and income all logged and sorted for tax day? Waveapps.com is the best free online accounting software I have tried. It includes such FREE features as Chart of Accounts, Cash Flow management, Invoicing, and online banking. They also offer paid addons such as Payment/Merchant Services, Payroll, and Bookkeeping coaching/advisement.

I have tried Freshbooks, Zoho and a handful of OpenSource software you can install on your own webserver and Wave was clearly the front runner in this space. They have been going on 7+ years strong for me without hiccups.

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