Filed articles with the AZ Corporation Commission last month and got the approval email. Thought I was done. Then I got a letter from the city saying I need a separate business registration and a general business license before I can operate. Nobody mentioned this at any point. Is this normal for Arizona or did I miss something obvious? I'm running a small operation out of a rented office space, not retail.
Local Licensing
My Arizona LLC was approved, but the city wants another registration
Yeah, that's normal. State LLC approval and city licensing are two completely different things. The Corporation Commission just registers the entity. Cities hndle their own business licenses.
Which city? It varies a lot. Phoenix and Tucson both require it but the fees and paperwork differ. Some smaller municipalities are more lenient but still want the registration on file.
This tripped me up too when I started. I assumed the state approval covered everything. Cost me an extra two weeks getting the city paperwork sorted after I'd already signed my lease.
Also check if your ciyy requires a home occupation permit if you ever work from home. Different thing again.
Not retail means you probably skip zoning review at least, but the general business license is standard in most AZ cities now. I'd just call the city clerk directly instead of trying to figure it out from the website. Their sites are usually outdated.
Seconding calling the clerk. I spent an hour on my city's portal trying to find the right form and it turned out to be a PDF buried in an old page. One phone call and they emailed me exactly what I needed.
Do you need a transaction privilege tax license too? That's another one people forget. It's through ADOR, not the city, but some cities collect thier own TPT on top.
TPT depends on what you're selling. Services are taxed differently than goods. Worth checking before you as sume you don't need it.
Right but the OP said office space and not retail, so it might not apply. Hard to say without knowing the industry. Doesn't hurt to look up the ADOR licensing wizard though, it walks you through it.
One more thing, keep copies of everything you submit to the city. I had to prove my registration was active when I renewed a contract and the city took forever to send confirmation. Having the stamped copy saved me.
How long did the city give you to register? Some of them tack on late fees if you operate past a certain window after getting the letter.
Also the renewal cycle is usually annual, and it's on you to remember it. They don't always send reminders. I put mine in my calendar for 30 days before the due date.
Fees are usually under a couple hundred bucks for a basic license. Nothing to panic about, just annoying.