How to Start a Business in Phoenix, Arizona

Phoenix, the capital of Arizona, welcomes new entrepreneurs and provides a favorable business climate to promote your success. The city has more than 1.5 million residents as of 2010 and encompasses more than 500 square miles, geographically larger than Los Angeles.

Business Plan

• The United States Small Business Administration offers several helpful online tools to help you prepare a business plan. Use their start-up guide to walk you through the steps of establishing your new business. Contact the SBA Arizona District Office, located in Phoenix, to participate in workshops and classes to help you launch your new venture.

  A vital part of your business plan is how you structure your business organization. Consult with an attorney or your tax adviser to determine if you should operate as a sole proprietorship, partnership or corporation.

  Contact the Arizona Corporation Commission to determine if your business name is available and to request an application for incorporation. If you have decided to incorporate, there are several online companies that offer a package application to expedite all the required forms.

Mentor

• A mentor, experienced in your type of business, can help you avoid many of the pitfalls and set-backs common to business start-ups. The SCORE website offer free online and in person mentoring. SCORE also offers online marketing workshops, tax information and management classes. The Greater Phoenix SCORE office ranks in the top 10 of the 370 SCORE offices nationwide, providing more than 100 counselors at 14 locations in the Phoenix Valley. The Phoenix chapter provides services to more than 10,000 small business clients each year.

  It is helpful to choose a business role model and pattern your business following their steps to success. Volunteer Match is another mentor service that matches new businesses owners with mentors experienced in their field of business.

  The Small Business Development Center Small Business Development Center (SBDC) Maricopa Community College offer mentoring and classes for new business owners and provides free counseling on important issues such as business planning, licensing, registering a business, financing and new business regulations.

Licenses & Permits

• Contact the City of Phoenix to determine the professional and occupational licenses required to open your business. The Arizona Department of Commerce offers an interactive web site with forms for applications for permits and licenses.

  A U.S. Federal Employer Identification number (EIN) is required by all individuals opening a new business. The Internal Revenue Service website (see Resources) provides applications.

Taxes

• It is the responsibility of every new business owner to be aware of their tax obligations. Contact your tax adviser or the Arizona Department of Revenue to determine the state taxes that apply to your business. You may be liable for sales tax, property tax and employment taxes.

Sell Yourself

• Participate and be pro-active in groups organized to promote city growth, development and pride. The Economic Club of Phoenix, Enterprise Network, the Association for Corporate Growth and the Phoenix Chamber of Commerce welcome new members and have many helpful programs that benefit new ventures.