If you are thinking about starting a business in Arizona, Partridge & Associates can help! However, you should know that the entity you choose can greatly impact your financial potential. Partridge & Associates can help guide you through the rigorous business startup and legal documentation process.
What Kind Of Business Should I Start In Arizona?
The first step to starting a business in Arizona is choosing what type of business to start. You should choose a business that suits your natural abilities, interests, and goals. This will keep you motivated when the times get tough and improve the odds of success.
- Pool Service Business
- Jewelry Retail Store
- Contractor – Roofers, Plumbers, etc.
- Solar Company
Careful Planning Creates Successful Businesses
Businesses that become successful are mostly built through careful planning. Before dedicating tons of money toward your business, you need to have the right strategies in place:
Developing Your Product Or Service
What type of problem does your product or service solve? What sets your service or product apart from the competition.
Marketing & Sales
How will you get the attention of your potential customers? Who is your potential customer?
Partnerships and People
What professional relationships will need to be created in order for your business to succeed?
Profit & Loss
How many sales or clients will it take for you to profit or break even? Where will you get the money and how much will it take to get there?
Business Formation In Arizona
Choosing the right business entity can greatly impact your finances. It is very important that you have a tax strategy in place when forming a new business. Furthermore, the right entity can also keep your personal and business finances separate, protecting you from liability. From taxes to personal liability, there is a lot to sort out beforehand.
- Small Business LLC Formation
- C Corporation Formation
- S Corporation Formation
Partridge & Associates Can Help With Business Formation
Additionally, consider the integrated services we offer. From initial start-up to your first business income tax filing, Partridge & Associates CPA’s will be there for you – with answers that can make a difference to your bottom line, both personally and for your business.
Learn more about how Partridge & Associates can help with New Business Formations
Registering For Taxes In Arizona
Registering for taxes is one of the first things you need to do when starting a small business in Arizona. While most business will only be required to pay certain taxes, like withholding income tax, there are other specific taxes that will apply to specific services. For example, a bingo operator that works in the state of Arizona would be required to pay bingo tax, tobacco companies working in the state would need to pay tobacco luxury tax and liquor distributors would be required to pay a liquor luxury tax, etc.
In either case, most business will need a Tax ID number, also known as an EIN number. Without a Tax ID number, you will not be able to hire employees or even open a bank account for your business.
Other Taxes May Be Required
If you are planning on selling a physical product, you will need to register for the Arizona Transaction Privilege Tax. The ATPT is similar to sales tax. Furthermore, if you plan on hiring employees in the state of Arizona you will also need to register for Arizona Employee Withholding Tax and Arizona Unemployment Tax.
Learn more about Arizona State Tax & Licensing Requirements
Partridge & Associates Can Help With Tax Planning, Registration & Preparation
Our CPA’s know that small business owners and self-employed professionals need professional tax planning and preparation services just like large businesses do. Our business tax preparation services work for any size business, not just large ones. We can help with everything including business tax registration, planning, and preparation.
Hire An Accountant or Develop An Accounting System
Whether you decide to do your own accounting or hire a professional accountant, you will need an accounting system to help you track the financial performance of your business. Developing a great accounting system will also help when it comes time to file taxes.
Partridge & Associates Can Help With Accounting & Bookkeeping Services
Business owners in Arizona have more important tasks to perform than having to do your own accounting and bookkeeping. Partridge & Associates CPA’s can all of that for you so you can focus on the daily operation of your business.
Whether you select monthly or quarterly bookkeeping and accounting, we will take care of the following tasks for you:
- Bank Account Reconciliation
- Profit & Loss Statements
- Statement Of Financial Position
- General Ledger Review & Maintenance
We can also help with the following QuickBooks services:
- QuickBooks Setup
- QuickBooks Training
- QuickBooks Cleanup
- QuickBooks Review
Obtain Your Business Licenses & Permits
Some small business owners will also have to seek business permits or licenses that are specifically related to their services. While other business may not even need a single license, some businesses may need a variety of them. Most licenses in the State of Arizona fall into one of the categories below:
- City and State Transaction Privilege Tax Licenses
- Professional or Regulatory & Special Permits and Licensing
- Occupational/Local Business Permits and Licenses
Learn more about Licensing & Taxes in Arizona
City Licenses & Permits
The city you live in may require specific licenses and permits. Each city will have its own regulations. Below are a list of the most common permits and licenses you might need:
- Permit For Zoning
- Permit For Signage
- Occupation Permits
- Permit For Alarm Systems
- Building Permit
- Tax Permit and/or Business License
- Health Permit
Partridge & Associates Can Help With Licensing & Permits
Not sure what type of city/state licensing or permits you will need for your business? Partridge & Associates can help guide you through the business licensing and permitting process to ensure you get everything you need to succeed.
Obtain Business Insurance
Obtaining business insurance will help you manage risk. Common types of business insurance worth considering are Professional Liability Insurance, Workers Compensation Insurance, and General Liability Insurance.
It is recommended that all business including home-based business should at least purchase a general liability insurance policy. Other businesses selling professional service or advice should also consider purchasing professional liability insurance. Furthermore, if you plan on having one of more employees, you will also need to have workers compensation insurance.
Not Sure What Type Of Insurance Your Business Will Need?
It can be confusing to understand what type of insurance your business might need. Let Partridge & Associates guide you through the business start-up process to clear up the confusion and create a plan so that you don’t miss anything.
Requirements For Employers
If you plan on having employees there are additional guidelines you will need to follow in order to stay ok with the IRS.
Income Tax Withholding
The IRS states that employers should keep employment tax records for at least 4 years after filing. The retain tax records should include:
- Social Security numbers, contact information and personal information of employees
- Your EIN number
- Pension, wage, and annuity payment information for employees
- Copies of your employees’ tax withholding allowance certificates
It is very important to keep your business records as they help your business run smoothly and can help prevent future problems, like preparing tax returns.
W-2 and W-4 Forms
You will need to have your employees give you a signed copy of their W-4 so you can submit it to the IRS. According to the IRS, “Form W-4 tells you, as the employer, the marital status, the number of withholding allowances, and any additional amount to use when you deduct federal income tax from the employee’s pay.”
You as the employer will be responsible for the W-2 form. The W-2 form is a document that relates to taxes and wages of each employee.
It is required that you provide your employees with a copy of their W-2 form by the end of January and provide the SSA (Social Security Administration) a copy by the end of February.
I-9 Forms & Employee Eligibility Verification
New employees in AZ should fill out an Employee Eligibility Form, also known as an I-9 Form, within 3 days of their employment start date. All employers need to keep I-9 Forms on file to provide proof of their eligibility to work in the US.
Learn more about I-9 Forms
Report Newly Hired Employees
State and Federal law requires all employers in the state of Arizona to report re-hired or newly fired employees to the ANHRC (Arizona New Hire Reporting Center) within 20 days.
Learn more about Arizona New Hire Reporting
Need Help With Starting A Business In Arizona?
There is a lot of requirements, licenses, permits, etc. you will need to start a business in Arizona! Partridge & Associates CPS’s can help at any stage of the process!