I am an out-of-state company with a new Arizona employee (2022)

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If your business is organized under the laws of another state or country and you want to transact business in Arizona and/or have one or more employees in Arizona, you may need to register as a foreign entitywith either the Arizona Secretary of State or the Arizona Corporation Commission, depending on your business structure.

License and registration requirements are not the same for every business. Note: Not all businesses need a license and some may need more than one.Arizona's new universal licensing recognition law makes it easier for people who are already licensed in another state to get an occupational license at the same level in Arizona. Click here to learn more.

Select from the list below - which includes selection option for "Having Full-time or Part-time Employees" - to create a checklist pertinent to your business needs that will direct you to most of the business forms you may need and information for contacting licensing agencies.For additional information regarding Transaction Privilege Tax, Business, and Regulatory licensing, see theBusiness Licensingpage.

PLEASE NOTE: While creating your checklist, if you do not find your particular business occupation/activity, there may beseveralitems that will direct you to most of the information you need. For example, if you plan to open a bowling alley, activities you might select include: selling a product, selling food/beverage, amusement, rental, etc.

*Ifyou are not a citizen of the United States, the U.S. Citizenship and Immigration Services has information on Working in the United States.

Business Structure/EIN

My business is organized under the laws of another state or country

I will be a Sole Proprietorship

I will be a General Partnership

I will be a Limited Partnership

I will be a Limited Liability Company (LLC) or Professional LLC

I will be a Corporation, Professional Corporation or S Corporation

I will be a Nonprofit Corporation

I will be a Benefit Corporation

I am not sure which business structure I will be

Business Name, Trademark and Service Mark

I plan to operate my business under a trade/DBA (Doing Business As) name

I plan to file an Arizona Trademark or Service Mark

I plan to file a Federal Trademark or Service Mark

My business will be based and/or operate in the following cities/towns

Apache Junction





Bullhead City

Camp Verde


Casa Grande

Cave Creek


Chino Valley



Colorado City







El Mirage




Fountain Hills


Gila Bend








Huachuca City




Lake Havasu City

Litchfield Park






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Oro Valley


Paradise Valley









Prescott Valley


Queen Creek


San Luis



Show Low

Sierra Vista



South Tucson


St Johns

Star Valley

(Sun City/ Sun City West)


















My business will be based in an unincorporated region of the county

My business will be based in an unincorporated region of the county

My business activity(ies) will include engaging in activities subject to transaction privilege (sales)/use tax

Advertising - delivery or dissemination of advertising information by direct mail, radio, billboards, television, or any other means

Amusements - charging admission or user fees for exhibition, amusement, entertainment or activities (includes tours)

Construction/Construction-Related Activity - modifying real property

Feed at Wholesale - sellers of animal feed, even if selling to someone who intends to resell the feed

Job Printing, Engraving, Embossing, or Copying


Online Lodging Marketplace

Operating pipelines for transporting oil or natural or artificial gas from one point to another in Arizona

Private (Rail) Car - operating, furnishing or leasing railroad cars to be used for transporting persons or freight within Arizona

Promoter of Special Events

Publishing - newspapers, magazines, or other publications in Arizona

Remote Seller/Marketplace Facilitator (includes any person selling into Arizona)

Renting, Leasing, Licensing for Use of Real Property (includes commercial buildings, apartments, homes or other residential units)

Renting, Leasing, Licensing for Use of Tangible Personal Property (includes rental of equipment, automobiles, tools, furniture, coin-operated laundromats/car washes, etc.)

Selling a Product (includes service/repair businesses that provide parts/materials)

Selling Food and Food-Related Products/Beverages

Telecommunications (includes telephone, FAX, monitoring of security or alarm systems, computer interface, telegraph, etc.)

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Timbering & Other Extraction

Transient Lodging (includes apartments, bed & breakfast, hotel/motel, tourist home, campground, space for mobile home, etc.)

Transporting for Hire - transporting persons, freight, or property

Use Tax - use, store or consume tangible personal property upon which tax has not been collected; Out-of-state retailers or utility businesses that sell to Arizona customers

Utilities – producing and/or furnishing to consumers, natural or artificial gas and water (includes providing various electric services to retail customers)

My business activity will involve

Agriculture and Agriculture-related Products (includes Arizona Native Plants)

Animal Food (Feed) Products (includes pet food)

Apparel and Labeling (includes textile, wool, fur, apparel and leather matters)

Arizona Grown (includes Arizona Food, Fiber and Beverages)

Auction House/ Auctioneer


Business Opportunity

Buying an Existing Business

Cats, Dogs, and other Animals

Children's Products

Clothing and Textiles

Commercial Weighing (Scale), Measuring, Metering or Counting Device

Conducting business in more than one city/county

Consumer Products


Cosmetology/Hairstyling/Nail Technology/Aesthetics

Document Authentication and Apostille (travelling overseas, or sending documents for use in a foreign country)


Film and Digital Media


Firewood SalesState law requires firewood to be sold by the cord, fraction of a cord or by cubic feet, unless exempt


Food and Food-Related Products/Beverages (includes ADHS Cottage Food Program, and Dietary Supplements)

Funeral Goods/Services

Hemp/Cannabidiol (CBD)-Containing Products

Homeowners' Association (HOA)

Indian Arts and Crafts

Internet/Online/Mail Order Sales or Services

Invention, Innovation, Technology and Entrepreneurship (includes patents)

Jewelry (includes precious or semiprecious stones, cultured pearls, watches, clocks, and goods, wares and merchandise commonly classified as jewelry)

Liquor Sales/Microbrewery Products/Farm Wineries/Cider Products

Livestock, Poultry, Fish, Meat, Milk, Eggs


Made in USA Claims

Manufactured Homes, Factory-Built Buildings (FBBS), Mobile Homes

Manufacturing/Manufacturing-Related Activity (includes simple to advanced)

Marijuana - Adult Use

Motor Fuels, Fuel Tax and Reporting, Fueling Devices, and/or Motor Fuel Dispensers

Motor Vehicles (includes automobile, motor bus, motorcycle, truck or truck tractor or any other self-propelled vehicle, trailer or semitrailer)

Music (includes music creators who write, compose or publish music and anyone who uses music in their business)

Organic Products

Pay-Per-Call Services (includes 900-number)

Peddler/Vendor/Door-To-Door Sales/Hanging Flyers

Pesticides/Pest Control (includes herbicides, etc.)

Precious Items

Raising Capital

Recycling (includes green business practices)

Renewable Energy

Scrap Metals/Junk Metals

Second-hand Items (includes antiques)

Special Events, Craft Shows & Trade Shows

Telephone Solicitation (includes any voice communication to a telephone number in Arizona from a live operator, announcing device or other means of offering merchandise for sale or rent)

Tires (includes sales of tires on new vehicles)

Tobacco Product (includes vapor product, tobacco or shisha instruments or paraphernalia)

Unmanned Aircraft System (UAS)/Drone

Waste Products (includes biohazardous medical wastes)

Wildlife (includes Fish)

Medical/Healthcare-related business activity


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Adult Day Health Care Facility

Ambulance (Air/Ground)

Athletic Trainer

Chiropractor/Chiropractic Services

Cosmetic Laser/Radiofrequency (RF)

Counselor/Therapist/Psychologist/Psychotherapy Services/Social Worker/Behavior Analyst

CPR (Cardiopulmonary Resuscitation) Instructor

Dental Services

Drugs/medical devices for humans or pets (includes over-the-counter, generic, prescription medications and devices and non-prescription medications, and compressed medical gases)

Equine Dentist

Hand Sanitizer

Health Club/Gym/Yoga Studio/Fitness Center

Home Health Agency


Long Term Care Facility (Nursing Home)

Massage/Massage Therapy Related Business (includes bodywork)

Medical Facilities

Medical Marijuana

Medical Marijuana Testing Laboratory

Medical Transcriptionist


Non-Emergency Medical Transportation (NEMT) (includes stretcher van or wheelchair van)

Non-Medical Home Care

Occupational Therapist/Occupational Therapy Assistant


Personal Protective Equipment (PPE) (includes masks, face shields, respirators, gowns, and gloves)



Physical Therapist/Physical Therapist Assistant/Physical Therapy Entity


Referral Agency for Assisted Living Facility

Residential Healthcare Facility (includes Assisted Living Center/Home and Behavioral Health Residential Facility, Adult Foster Care Home, Behavioral Health Respite Home, and Behavioral Health Therapeutic Home)

Sober Living Home (may include half-way homes)

Speech & Hearing Professionals (includes Audiology or Dispensing Audiology, Hearing Aid Dispensing, Speech-Language Pathology)


Veterinarian/Veterinary Technicians/Veterinary Premises

X-Ray Facility/Unit

X-Ray Service Provider/Installer

Additional Business Occupations and Activities

Accountant/Accounting Firm/CPA/Bookkeeper

Alarm-Related Business/Alarm Agent

Animal Crematory



Athlete Agent

Attorney/Lawyer/Practice Law

Background Checks/Pre-Employment Screening

Banking/Finance-Related Business

Barter Exchange


Body Art/Body Art Establishment (includes tattoos, permanent makeup, piercings, branding and scarifications)

Boxing/Martial Arts-Related Businesses

Business Broker

Business/Life/Professional Coach

Business/Management Consultant

Career Counseling/Resume Writing

Carpet Cleaning

Child Care/Child Care Facility (includes Child Care Group Home, Center and Public School)

Cleaning Service/Janitorial Maintenance

Collection Agency (includes some billing services)

Computer-Related Business

Court Reporter

Credit Repair/Credit Services

Customs Broker/Customs Brokerage

Dance Instructor/Studio

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Disc Jockey/DJ Services

Dog Walker/Pet Sitter

Dressmaker/ Embroiderer/ Professional Alterations /Sewing Professional/Tailor

Dry Cleaner/Laundry Service

Employment/Placement/Modeling/Talent Agency

Engineer/Firm/Branch Office

Enrolled Agent/Tax Return Preparer

Escort Service

Event Planner

Fiduciary/Guardian/Conservator/Personal Representative

Financial Planner / Estate Planner / Investment Adviser / Investment Adviser Representative / Securities Dealer / Securities Salesperson / Stockbroker

Florist/Flower Shop


Games of Chance


Gardener/Lawn Care


Graphic Design and Related Activities


Home Inspector/Firm/Branch

Home Watch

Insurance-Related Business

Interior Design

Land Surveyor/Firm/Branch

Landscape Architect/Firm/Branch

Landscaping/Lawn Maintenance

Legal Assistant/Legal Document Preparer/Paralegal

Legal Transcriptionist


Marriage solemnization/Officiating at marriage ceremony

Moving Company

Multi-Level Marketing/Sales (e.g., Mary Kay)

MVD Authorized Third Party Provider (ATP)

Notary/Notary-Related Activity

Pawn Shops/Pawnbrokers

Payroll Service

Pet Grooming

Photography/Video Production

Pool Cleaning

Pressure Washing

Private Investigator/Private Investigation Agency

Private Process Server

Private School

Professional Employer Organization (PEO)

Professional Organizer


Real Estate-Related Business

Security Guard/Security Guard Agency

Service-based Activity

Solar-Related Business

Tanning Salon/Booth/Products



Tour/Guide Services

Towing and Recovery

Travel Agency/Agent

Vending Machines

Vocational/Trade Schools/Degree Granting Programs

Window Cleaning Service

Window Tinting

Having Employees and Job Training Programs

Having Full-time or Part-time Employees

Independent Contractors

Required Workplace Posters

Arizona Job Training Program

See Results


Is Arizona an employer friendly state? ›

Arizona is considered to be an employer friendly state by most employers; however, this does not mean there aren't pitfalls for the unwary or uninformed.

What counts as doing business in a state? ›

As a rule, you can assume you're doing business if you meet any of the following criteria: Your company has a physical presence (like a factory or stores) in the state. Your company has employees in the state. Your company accepts orders in the state, or has liability to collect sales tax.

How do I register an out of state business in Arizona? ›

To register your business in Arizona, you must file an Application for Registration of Foreign Limited Liability Companywith the Arizona Corporation Commission (ACC). You can download a copy of the application form from the ACC website.

Does a foreign corporation need to register in Arizona? ›

If a foreign entity wants to transact business or conduct affairs in Arizona, it must register with the Arizona Corporation Commission.

Does Arizona tax remote workers? ›

If the move to AZ is intended to be permanent, the taxpayer files two part-year resident returns. Additionally, earnings from remote work actually carried out in AZ are AZ-source income per AZ Statute 43-104 (9), and are taxable by AZ.

Does Arizona require non resident withholding? ›

An employer must withhold Arizona tax from wages paid for services performed within the state regardless of whether the employee is a resident or nonresident.

Can you have a business in 2 different states? ›

Updated November 4, 2020: Can you incorporate in multiple states? No; although your corporation or limited liability company can register and do business in multiple states, you are only allowed to incorporate in one state.

Can I start an LLC in another state? ›

When you decide to start a limited liability company (LLC), you can choose to form your company in any state, regardless of where you are based. But in most circumstances, your home state is going to be your most-effective option.

How do I run a business in multiple states? ›

One common area of confusion and misconception is conducting business in multiple states. By law, if your company plans to conduct business in any other states than your state of incorporation (or LLC formation), then you may need to register your business in those states. This process is called foreign qualification.

Are out of state sales taxable in Arizona? ›

If the out-of-state vendor does not charge sales tax, the Arizona resident is required to remit use tax directly to ADOR. Individuals who purchase taxable products from out-of-state locations, but pay no sales tax, are responsible for paying use tax.

How do I register my employer in Arizona? ›

Registration must be done by completing the Arizona Joint Tax Application, (Arizona Form JT-1), available here. Completing and submitting Arizona Form JT-1 also begins the process of registering the employer for unemployment compensation insurance with the Arizona Department of Economic Security.

Do I need to register business with Arizona? ›

Your business must register with ADOR before conducting any taxable business activity in Arizona for transaction privilege tax (TPT) and withholding purposes.

How do I register as a foreign entity in Arizona? ›

To register a foreign corporation in Arizona, you must file an Arizona Application for Authority to Transact Business in Arizona with the Arizona Corporation Commission, Corporations Division. You can submit this document by mail or in person.

Who can be a statutory agent in Arizona? ›

Who can be the Statutory Agent? A Statutory Agent can be an individual, or an Arizona corporation or LLC, or a foreign corporation or LLC that is authorized to transact business in Arizona. A corporation or LLC cannot be its own Statutory Agent – it must appoint someone apart from itself.

What happens if I work remotely in another state? ›

Generally, employees working remotely are subject to the laws of the state where they work – immediately. Employers could inadvertently become liable for diverse state benefit programs or mandates, such as paid leave requirements, minimum wage, required disclosures, diverse wage statement requirements and so on.

What are the tax implications of working remotely from another state? ›

A worker may have tax obligations in any state where they reside and possibly the state where their employer's worksite is located. A permanent remote worker will file their personal income taxes in their state of residence, whether they are a W-2 employee or a 1099-NEC independent contractor.

How do taxes work if I work remotely out of state? ›

If you have a telecommuting employee in a different state than your location, or employees in multiple states, you must withhold income taxes for the state they live and work in. You'll pay unemployment taxes and report their income to the states where they live, not your state.

How do taxes work if I live in Arizona but work in California? ›

Yes you do: Arizona, as your resident state, gets to tax your world-wide income. California gets to tax your compensation because it was earned there. The nonresident TT/Calif will begin to prepare a tax credit for the compensation that both states are taxing to help avoid double taxation.

What is AZ state withholding? ›

Employee Withholding Determination

If the employee does not complete the form, the employer must withhold Arizona income tax at the rate of 2.7% until the employee elects a different withholding rate.

What establishes residency in Arizona? ›

The formula for establishing domicile is defined as: Physical presence in the state with simultaneous intent to make Arizona one's permanent home and place of habitation and abandonment of former domicile.

What is a sole proprietor vs LLC? ›

An LLC exists separately from its owners—known as members. However, members are not personally responsible for business debts and liabilities. Instead, the LLC is responsible. A sole proprietorship is an unincorporated business owned and run by one person.

What are the main differences between an LLC and an S corporation? ›

LLCs can have an unlimited number of members; S corps can have no more than 100 shareholders (owners). Non-U.S. citizens/residents can be members of LLCs; S corps may not have non-U.S. citizens/residents as shareholders. S corporations cannot be owned by corporations, LLCs, partnerships or many trusts.

What is considered a foreign entity? ›

A foreign entity is any corporation, business association, partnership, trust, society or any other entity or group that is not incorporated or organized to do business in the United States, as well as international organizations, foreign governments and any agency or subdivision of foreign governments.

What is the best state to set up an LLC? ›

  • Delaware is the most popular state to file an LLC in because it has a strong reputation for being business-friendly and offers a fast filing process with increased protection for owners. ...
  • Wyoming offers low fees and great tax benefits for people looking to start an LLC.

What state has the lowest business tax? ›

1. Wyoming
  • Corporate tax rank: 1 (no income tax levied)
  • Individual income tax rank: 1 (no income tax levied)
  • Sales tax rank: 6.
  • Property tax rank: 39.
  • Unemployment tax rank: 27.

What is the best state to incorporate? ›

Delaware is the most common state to incorporate in. The State of Delaware is a leading home for both domestic and international corporations. More than 1,000,000 businesses have made Delaware their home.

What does domestic business mean? ›

A domestic corporation is a company that conducts its affairs in its home country. A domestic business is often taxed differently than a non-domestic business and may be required to pay duties or fees on the products it imports.

Which of the following is the most common choice of organization for a new small business? ›

A sole proprietorship is the most common form of business organization. It's easy to form and offers complete control to the owner. But the business owner is also personally liable for all financial obligations and debts of the business.

Can a Florida LLC do business in other states? ›

Yes, you are allowed to operate a Florida LLC for any legal business in every state in the USA. Under the US Constitution, your Florida LLC is viewed as a legal “person” and other states cannot discriminate against this “person” based on where he/she/it was born or incorporated.

Who is exempt from sales tax in Arizona? ›

In general, nonprofit organizations in Arizona are not exempt from the Transaction Privilege and Use Tax passed on by vendors. However, as vendors themselves, nonprofits in Arizona are generally exempt from the transaction privilege tax for retail sales.

What city in Arizona has the highest sales tax? ›

Arizona: Sales Tax Handbook

Combined with the state sales tax, the highest sales tax rate in Arizona is 11.1% in the city of Tucson.

What is privilege tax in Arizona? ›

Transaction privilege tax (TPT) is a tax on a vendor for the privilege of doing business in the state of Arizona. Arizona originally adopted TPT in 1933 when the rate for selling tangible personal property at retail was 2 percent. That rate is currently 5.6 percent.

How do I get an Arizona employer identification number? ›

You must have a federal tax ID number, or EIN, in order to get an Arizona state tax ID number. You can go to a local Internal Revenue Service to apply or call the IRS directly. The exception to this is if you are a sole proprietor with no employees.

What is minimum wage in AZ? ›

Labor Department - Minimum Wage

Effective January 1, 2022, through December 31, 2022, Arizona's minimum wage will be $12.80 per hour. Effective January 1, 2023, through December 31, 2023, Arizona's minimum wage will be $13.85 per hour.

Does Arizona have a state payroll tax? ›

All wages, salaries, bonuses or other compensation paid for services performed in Arizona are subject to state income tax withholding, with exceptions. Visit the Arizona Department of Revenue Web site for detailed information.

How much is an AZ business license? ›

The price of a business license or permit can vary depending on the type of license, business location, processing fees and recurring fees. Phoenix charges an application fee from $24 up to $1,665 and a license/permit fee between $10 and $360, depending on the type of business.

How much does an LLC cost in AZ? ›

Arizona LLC Articles of Organization ($50 or $85)

You need to file an Articles of Organization in order to create an LLC in Arizona. The Articles of Organization can be filed by mail or online. The fees for both are the same: $50 for regular filing and $85 for expedited filing. The filing fee is a one-time fee.

How much does it cost to register a business in Arizona? ›

The fee for filing the Articles of Organization is $50 online, by mail, and in person. For detailed instructions for completing the Articles of Organization, visit our How to File the Arizona Articles of Organization guide. 1300 W.

What is the most employee friendly state? ›


What is the most business friendly state? ›

North Carolina

Can you sue your employer in Arizona? ›

If you are injured on the job and discover that your employer doesn't have workers' compensation insurance or doesn't have sufficient coverage, then you may be able to sue in civil court for medical costs, lost wages and pain and suffering.

What rights do employees have in Arizona? ›

Under Arizona law, employees are entitled to certain leaves or time off, including paid sick leave, crime victim leave, voting leave, jury duty leave and military leave. See Time Off and Leaves of Absence.

Are the 10 poorest states right to work states? ›

And the ten best, none of which are “right to work,” are District of Columbia, California, Washington, Massachusetts, Maine, Oregon, Rhode Island, Vermont, Connecticut, and Minnesota. Oxfam relied on three indicators for their rankings: wage standards, worker protection, and right to organize.

Which states have the strictest employment laws? ›

The latest iteration of Oxfam's Best States to Work Index technically ranks the District of Columbia as the top locale for strong labor laws. Among states, California, Washington, Massachusetts, Maine and Oregon claimed the top spots, with Rhode Island, Vermont and Connecticut following close behind.

What states in the US are not right to work states? ›

In states where there are right-to-work laws, employers and labor unions are prohibited from forcing any employee that is not part of the union to pay fees.
Right to Work States 2022.
StateRight to Work Law Adopted
North Carolina1947
North Dakota1947
22 more rows

Which state is the least business friendly? ›

Key Takeaways. The most tax-friendly U.S. states are Wyoming, South Dakota, Alaska, Florida, and Montana. The least tax-friendly states are Minnesota, Connecticut, New York, California, and New Jersey.

Which U.S. state is the most financially stable? ›

Alaska is the top state for fiscal stability.

What is the best state to live in USA 2022? ›

According to the report, the best state to live in the U.S. is Massachusetts. That isn't the only northern state to appear near the top of the rankings. New Jersey, New York, Idaho, New Hampshire, Wyoming, Minnesota, and Wisconsin all made the top 10.

What qualifies as wrongful termination in Arizona? ›

Wrongful termination in Arizona occurs when an employer fires you because of your sex, race, religion, and a handful of other categories. Simply put, employers are foreclosed from firing you because of your immutable characteristics, even in those states where right-to-work laws have taken hold.

Can you sue for emotional distress in Arizona? ›

Emotional distress can uproot your life with nightmares, PTSD, and suicidal thoughts. If you suffer from demonstrable emotional distress, you have the right to pursue an Arizona personal injury claim.

Can you be forced to work overtime in Arizona? ›

Is mandatory overtime in Arizona legal? Under current Arizona laws, mandatory overtime is legal. With that said, an employer who requires you to work more than forty hours per week must also provide you with overtime pay for those extra hours that you are required to work.

Are lunch breaks required by law in Arizona? ›

No Arizona Law Requires Meal or Rest Breaks

In other words, although breaks are not required, employers must pay employees for time they spend working and for shorter breaks during the day.

How many breaks do you get in an 8 hour shift in Arizona? ›

15 minute break for 4-6 consecutive hours or a 30 minute break for more than 6 consecutive hours. If an employee works 8 or more consecutive hours, the employer must provide a 30-minute break and an additional 15 minute break for every additional 4 consecutive hours worked.

Is 32 hours Full-time in Arizona? ›

Arizona labor hours

Full-time employees work 40 hours within a workweek. However, according to the Affordable Care Act (ACA), full-time employment can be anything over 30 hours a week. So, it is important to check with your employer what they consider to be full-time hours, before going over your pay and benefits.


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