Arizona has long been a popular state for a range of businesses. There are a few things you need to know before you start a business in Arizona. Here are the essentials that every business owner needs to be aware of.
Registering For Taxes
While there are a small number of exceptions, the overwhelming majority of Arizona companies will need to register for an Employer Identification Number. This number, sometimes referred to as a Tax ID Number, identifies your business when you file your federal tax returns. If you don’t have this number, you can’t legally hire employees in Arizona or open a bank account for your business.
The Arizona Transaction Privilege Tax applies to every sale of a physical product. It is the equivalent of sales tax in many other states. Any business that hires employees also needs to register for Arizona Unemployed Withholding Tax and Arizona Unemployment Tax.
Set Up Banking And Credit Accounts
To keep your personal assets protected from any potential liability arising from your business, you need to set up dedicated accounts for banking and credit. Mixing your accounts can be dangerous in terms of exposing your personal assets. If someone sues your business or an unexpected economic shock hits you, your home, car, and other possessions could be on the line.
For businesses in Arizona, as long as you maintain a clear delineation between your business and personal assets, creditors will not be able to come after your personal assets to cover business debts.
Make Sure You Have The Appropriate Permits And Licenses
Some businesses require special licenses to operate in Arizona. These permits mostly apply to businesses that are involved in activities regulated at the state or federal level. Arizona might require you to apply for a range of special permits before you open your business. The best way of checking this is through the Arizona Commerce Authority website.
Get Insured
Business insurance is always an important purchase, regardless of the state you are operating in. Insurance will keep your business safe from financial damage and protect you from liability. The insurance that you need will depend on the type of business that you are going to start.
Sort Out Your Supply Chain Early
If your business is going to be selling physical products, you should aim to establish your supply chain as soon as possible. Your supply chain details the journey that products take to get to consumers. If you are selling physical products to consumers, you need a reliable supply chain to provide you with the stock or components you need.
You can identify who you are going to work with to establish a supply chain by looking online. For example, this site has a list of electronic component distributors who provide various electronic components.
As long as you stay on top of your administrative obligations, obtain the right permits, and keep up with all your other legal obligations, Arizona is a great state to do business in. Make sure that you plan ahead to avoid any problems down the line.
