Arizona Business License: Who Needs One & How to Apply (2025)

What Is a Business License in Arizona?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately. 

So, if there isn’t a statewide “general business license” in Arizona, what exactly is there?

Well, Arizona — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do. 

For example:

• A restaurant in Phoenix will need a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue, a food establishment permit from Maricopa County Environmental Services, and may need additional city regulatory licenses.
• A beauty salon in Tucson will need establishment and individual licenses from the Arizona Barbering & Cosmetology Board, a TPT license, and a City of Tucson Business License.
• A construction company anywhere in Arizona will need a contractor’s license from the Arizona Registrar of Contractors, a TPT license, and local business licenses.
• A home-based online retailer in Mesa will need a TPT license and a Mesa General Business License; it will also need to ensure compliance with all applicable home occupation zoning rules.

Do I Need an Arizona Business License? 

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Arizona Business Licensing at a Glance

Jurisdiction	Business Licenses	Who Needs It & Where to Apply
Local	General Business License, Health Permits, Zoning Permits, Home Occupation Permits, etc.	Varies by location Contact your local municipality to determine requirements.
State	Transaction Privilege Tax (TPT) License	Businesses selling taxable goods or services or engaged in taxable activities.  Apply via the Arizona Department of Revenue (ADOR)
	Professional Licenses	Required for regulated professions (e.g., contractors, cosmetologists, real estate agents, etc).  Apply via the relevant Arizona board or agency.
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., liquor, child care, motor vehicles, cannabis)  Apply through the relevant Arizona agency.
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.

How to Get a Business License in Arizona

The process of obtaining a business license in Arizona will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and corporate finance

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in Arizona

This step will depend on the business license in question.

Arizona Local Business Licenses

Many Arizona cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• General Business License: Many cities and counties across Arizona require businesses to apply for a license before operating within the city or county limits. For example, the city of Mesa requires most businesses to apply for a general business license to operate within the city.
• Industry Permits: The county health departments issue permits to – and perform inspections on – businesses like food establishments, pet shops, public accommodations, public and semi-public swimming pools, mobile food vendors, and trailer parks. If your business handles food products, you’ll need to obtain permits through the county health department (e.g., if your business is based in Maricopa County, you’ll need to visit the Maricopa County Environmental Services Food Permits page).
• Zoning Permits: Businesses must ensure that their location is zoned appropriately for business use and may need a Conditional Use Permit for certain activities (e.g., if you’re in Pima County, you’d need to check the Pima County Development Services zoning requirements page).
• Certificate of Compliance/Building Permits: Most businesses need appropriate building permits before occupying a commercial space. This verifies that the structure meets building codes and is safe for the intended use. Cities handle these permits through their building departments (e.g., if your business is in Phoenix, you’d need to visit the City of Phoenix Construction Permits and Planning page).
• Home-Based Business Permits: If you’re operating from home, you must ensure that you comply with all local zoning rules, which typically allow home businesses that are small, quiet, and don’t create parking and traffic problems.

To find your local county or city’s official contact information and licensing requirements, you can visit the League of Arizona Cities and Towns directory.

Arizona State Business Licenses

Below we’ve included the most common business licenses that are required on a state level.

Tip: Your business does not need to pay Transaction Privilege Tax (TPT) when purchasing goods for resale. You’ll need to have obtained a state Transaction Privilege Tax (TPT) license and present an Arizona Resale Certificate (Form 5000A) when buying such items for this to apply. 

Arizona Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• Arizona Department of Health Services (ADHS): Oversees licensing for health-related professions through its Bureau of Special Licensing and Public Health Licensing divisions; this includes licensing for physicians, nurses, pharmacists, physical therapists, and other healthcare professionals.
• Arizona Department of Real Estate: Handles licensing for real estate brokers and salespersons, in the state of Arizona. 
• Arizona Registrar of Contractors (ROC): Established in 1931, licenses and regulates over 45,000 residential and commercial contractors .This includes general contractors, specialty contractors, and dual contractors. 
• Arizona Department of Insurance and Financial Institutions (DIFI): Regulates business licenses for insurance agents, brokers, adjusters, consultants, and all insurance-related professions, as well as other financial services.
• Arizona State Board of Behavioral Health Examiners: Handles licensing for counselors, social workers, marriage and family therapists, and substance abuse counselors. Applications are processed through their online portal.
• Arizona Supreme Court – Attorney Admissions: The Arizona Supreme Court is responsible for the entire process of admitting attorneys to the State Bar of Arizona, implementing procedures required of law school graduates to become certified to practice law in Arizona.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some Arizona businesses require additional licenses based on the specific industry they operate in.

Here are some common examples of industry-specific state licenses in Arizona:

• Liquor License: Required for businesses that manufacture, distribute, or sell alcoholic beverages, regulated by the Arizona Department of Liquor Licenses and Control (DLLC). Arizona has 17 different license categories including restaurants, liquor stores, hotels, bars, distillers, distributors, and special events.
• Motor Vehicle Dealer License: Required for individuals or corporations engaged in the sale of vehicles, issued by the Arizona Department of Transportation (ADOT) Motor Vehicle Division. This includes separate licenses for new motor vehicle dealers, used motor vehicle dealers (selling 7+ vehicles per year), wholesale dealers, brokers, and automotive recyclers.
• Child Care License: Required for child care centers serving five or more children and child care group homes, overseen by the Arizona Department of Health Services (ADHS) Bureau of Child Care Licensing.
• Marijuana Establishment License: Arizona has one comprehensive cannabis business license that is issued by the ADHS Bureau of Marijuana Licensing. 

Note: This is not a complete list. Many other state-level licenses exist for specific industries such as gaming, racing, private investigation, security services, food processing, and transportation services. For more information on industry-specific licensing requirements for your business, you can contact the Arizona Commerce Authority or consult with a business attorney.

Arizona Environmental Permits

If your business’s industry will mean that it could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the Arizona Department of Environmental Quality (ADEQ).

Examples of common Arizona environmental permits include:

• Underground Storage Tank (UST) Registration: Required for businesses with underground storage tanks, including gas stations, businesses with backup generators, heating oil tanks, or any facility storing petroleum products.
• Air Quality Permits: Required for businesses with equipment that emits air pollutants, including dry cleaners, auto body shops, print shops, concrete batch plants, gas stations, and manufacturing facilities.
• AZPDES Stormwater Permits: Required for construction companies disturbing one acre or more of land and industrial facilities with stormwater runoff, including manufacturing, mining, transportation, and recycling facilities.
• Hazardous Waste Generator ID: Required for businesses that generate hazardous waste, including auto repair shops, dry cleaners, medical facilities, manufacturers, and any business disposing of chemicals, solvents, or contaminated materials.
• Water Quality/Aquifer Protection Permits: Required for businesses discharging wastewater to groundwater, including car washes, laundromats, food processors, and facilities with large septic systems.
• Waste Tire Collection Registration: Required for businesses collecting or storing used tires outdoors, including tire shops, auto dealers, and recycling facilities.
• Drywell Registration: Required for businesses with drywells that receive non-stormwater discharges, including car washes, industrial facilities, and businesses with floor drains.

Federal Business Licenses for Arizona LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration.
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation

Arizona Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years.

Your Transaction Privilege Tax (TPT) license (Arizona’s sales tax permit) must be renewed annually. There is no “statewide” fee for this, although fees can be imposed depending on your area. For example, a $50 renewal fee is imposed in Flagstaff. 

You can have a look at the Department of Revenue’s renewal worksheet for more information. 

Renewals are also required for practically all professional licenses and many local permits, including:

• Health department permits for food establishments (annually)
• Professional licenses like real estate, contractors, insurance (typically every 1-2 years with continuing education)
• Liquor licenses (renewed annually through DLLC)
• Fire department inspection certificates (annually)
• Motor vehicle dealer licenses (annually)

Having said that, renewal requirements will ultimately depend on both your location and the specific license in question. As a result, we recommend always checking with your issuing agency for the specific renewal timelines and requirements that will apply to you.

Arizona Business License FAQs

Quick Links

• Arizona Department of Revenue: Transaction Privilege Tax License
• Arizona Commerce Authority: Arizona Business Licensing 
• Arizona Commerce Authority: Arizona Business Checklist 
• State of Arizona Department of Revenue: Arizona Taxes 
• Arizona Commerce Authority: Arizona City/Town Offices