How Much Does It Cost to Start a Business in Arizona?
Last updated: May 2026
Arizona Business Overview
LLC Filing Fee
$50
Sales Tax Rate
5.6%
Minimum Wage
$15.15/hr
Cost of Living Index
110.3
Workers Comp
Required
Annual Report Fee
$0
Starting a Business in Arizona
Arizona does not have a statewide general business license. Businesses register with the Arizona Department of Revenue for transaction privilege tax (sales tax) purposes.
Arizona has a flat 2.5% individual income tax rate (reduced from graduated rate in 2023). Corporations pay a flat 4.9% tax rate.
Arizona's rapidly growing population and warm climate create strong demand for outdoor services and real estate. The flat income tax rate is attractive for profitable businesses.
For official formation documents, visit the Arizona Secretary of State.
Startup Costs for 100 Business Types in Arizona
The table below shows estimated startup costs for every major business type, adjusted for Arizona’s cost of living index of 110.3. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $7,700 | $22,000 | $50,600 |
| Airbnb & Vacation Rental Business | Real Estate | $12,100 | $33,000 | $99,000 |
| Ambulance Service | Transportation & Logistics | $88,000 | $220,000 | $550,000 |
| App Development Company | Tech & Online | $11,000 | $33,000 | $88,000 |
| Architecture Firm | Professional Services | $22,000 | $60,500 | $143,000 |
| Auto Detailing Business | Automotive | $5,500 | $33,000 | $110,000 |
| Auto Repair Shop | Automotive | $82,500 | $220,000 | $550,000 |
| Bakery | Food & Beverage | $22,000 | $104,500 | $330,000 |
| Bar & Nightclub | Food & Beverage | $110,000 | $385,000 | $935,000 |
| Barbershop | Beauty & Personal Care | $16,500 | $71,500 | $192,500 |
| Beauty Supply Store | Beauty & Personal Care | $33,000 | $110,000 | $330,000 |
| Bookstore | Retail | $27,500 | $110,000 | $330,000 |
| Brewery / Microbrewery | Food & Beverage | $275,000 | $440,000 | $1,650,000 |
| Cannabis Dispensary | Specialty & Regulated | $136,950 | $365,200 | $1,369,500 |
| Car Wash | Automotive | $136,950 | $598,400 | $1,709,400 |
| Carpentry & Woodworking Shop | Construction & Trades | $11,550 | $30,800 | $77,000 |
| Catering Business | Food & Beverage | $13,200 | $58,300 | $143,000 |
| Chiropractic Office | Health & Wellness | $110,000 | $132,000 | $330,000 |
| Cleaning Business | Home Services | $1,650 | $12,100 | $40,700 |
| Clothing Boutique | Retail | $33,000 | $110,000 | $330,000 |
| Coffee Shop | Food & Beverage | $66,000 | $132,000 | $385,000 |
| Concrete Business | Construction & Trades | $27,500 | $71,500 | $165,000 |
| Consulting Business | Professional Services | $2,200 | $9,900 | $28,600 |
| Convenience Store | Retail | $55,000 | $308,000 | $825,000 |
| Courier & Delivery Service | Transportation & Logistics | $8,800 | $24,200 | $60,500 |
| Cybersecurity Firm | Tech & Online | $22,000 | $60,500 | $165,000 |
| Dance Studio | Childcare & Education | $22,000 | $88,000 | $275,000 |
| Daycare Center | Childcare & Education | $66,000 | $198,000 | $550,000 |
| Demolition Company | Construction & Trades | $33,000 | $88,000 | $220,000 |
| Dental Practice | Health & Wellness | $385,000 | $550,000 | $1,100,000 |
| Digital Marketing Agency | Tech & Online | $4,400 | $13,200 | $35,200 |
| E-Commerce Store | Tech & Online | $5,500 | $16,500 | $55,000 |
| Electrical Business | Home Services | $16,500 | $60,500 | $176,000 |
| Esthetics & Skincare Business | Beauty & Personal Care | $8,800 | $44,000 | $132,000 |
| Excavation Company | Construction & Trades | $55,000 | $143,000 | $385,000 |
| Financial Planning Practice | Professional Services | $22,000 | $60,500 | $143,000 |
| Flower Shop | Retail | $22,000 | $82,500 | $220,000 |
| Food Delivery Service | Food & Beverage | $11,000 | $57,200 | $143,000 |
| Food Processing Business | Food & Beverage | $220,000 | $275,000 | $825,000 |
| Food Truck | Food & Beverage | $49,500 | $132,000 | $220,000 |
| Freight Brokerage | Transportation & Logistics | $17,600 | $39,600 | $88,000 |
| Furniture Store | Retail | $55,000 | $220,000 | $660,000 |
| General Contracting Business | Construction & Trades | $22,000 | $60,500 | $143,000 |
| Ghost Kitchen | Food & Beverage | $22,000 | $66,000 | $165,000 |
| Gift Shop | Retail | $22,000 | $77,000 | $220,000 |
| Gym & Fitness Center | Health & Wellness | $55,000 | $275,000 | $1,100,000 |
| Hair Salon | Beauty & Personal Care | $16,500 | $82,500 | $275,000 |
| Handyman Business | Home Services | $2,200 | $11,000 | $36,300 |
| Home Health Care Agency | Health & Wellness | $44,000 | $143,000 | $330,000 |
| HVAC Business | Home Services | $22,000 | $77,000 | $220,000 |
| Ice Cream Shop | Food & Beverage | $22,000 | $82,500 | $220,000 |
| Insurance Agency | Professional Services | $16,500 | $44,000 | $99,000 |
| IT Services Business | Tech & Online | $16,500 | $44,000 | $110,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $27,500 | $99,000 | $275,000 |
| Landscaping Business | Home Services | $11,000 | $44,000 | $132,000 |
| Laundromat | Real Estate | $110,000 | $275,000 | $660,000 |
| Law Firm | Professional Services | $13,200 | $37,400 | $89,100 |
| Limousine & Car Service | Transportation & Logistics | $44,000 | $99,000 | $242,000 |
| Liquor Store | Retail | $55,000 | $198,000 | $550,000 |
| Marketing Agency | Professional Services | $5,500 | $19,800 | $55,000 |
| Martial Arts Studio | Childcare & Education | $22,000 | $77,000 | $220,000 |
| Meal Prep Business | Food & Beverage | $22,000 | $71,500 | $220,000 |
| Med Spa | Health & Wellness | $110,000 | $385,000 | $1,100,000 |
| Medical Practice | Health & Wellness | $165,000 | $440,000 | $1,100,000 |
| Mental Health Practice | Health & Wellness | $16,500 | $55,000 | $165,000 |
| Moving Company | Home Services | $33,000 | $110,000 | $330,000 |
| Music School | Childcare & Education | $11,000 | $55,000 | $165,000 |
| Nail Salon | Beauty & Personal Care | $22,000 | $99,000 | $275,000 |
| Painting Business | Home Services | $5,500 | $27,500 | $88,000 |
| Personal Training Business | Health & Wellness | $5,500 | $27,500 | $110,000 |
| Pest Control Business | Home Services | $11,000 | $44,000 | $132,000 |
| Pet Store | Retail | $33,000 | $110,000 | $330,000 |
| Pharmacy | Health & Wellness | $275,000 | $440,000 | $1,100,000 |
| Physical Therapy Clinic | Health & Wellness | $66,000 | $198,000 | $495,000 |
| Pizza Shop | Food & Beverage | $82,500 | $192,500 | $440,000 |
| Plumbing Business | Home Services | $16,500 | $55,000 | $165,000 |
| Podcast Production Company | Tech & Online | $2,200 | $6,600 | $19,800 |
| Preschool | Childcare & Education | $55,000 | $165,000 | $440,000 |
| Property Management Company | Real Estate | $11,550 | $26,400 | $60,500 |
| Real Estate Agency | Professional Services | $11,000 | $30,800 | $77,000 |
| Real Estate Investing & Rental Business | Real Estate | $27,500 | $82,500 | $275,000 |
| Restaurant | Food & Beverage | $192,500 | $412,500 | $825,000 |
| Roofing Company | Home Services | $16,500 | $66,000 | $198,000 |
| SaaS Company | Tech & Online | $22,000 | $66,000 | $220,000 |
| Spa & Massage Therapy | Health & Wellness | $11,000 | $77,000 | $275,000 |
| Staffing Agency | Professional Services | $22,000 | $60,500 | $165,000 |
| Storage Unit Facility | Real Estate | $220,000 | $660,000 | $2,200,000 |
| Tattoo Shop | Beauty & Personal Care | $22,000 | $64,900 | $220,000 |
| Tax Preparation Business | Professional Services | $3,850 | $11,000 | $29,700 |
| Thrift Store | Retail | $22,000 | $82,500 | $220,000 |
| Tire Shop | Automotive | $55,000 | $165,000 | $440,000 |
| Towing Company | Automotive | $55,000 | $165,000 | $440,000 |
| Trucking Company | Transportation & Logistics | $33,000 | $88,000 | $220,000 |
| Tutoring Business | Childcare & Education | $2,200 | $26,400 | $110,000 |
| Used Car Dealership | Automotive | $55,000 | $220,000 | $660,000 |
| Vape Shop | Retail | $27,500 | $82,500 | $220,000 |
| Web Development Agency | Tech & Online | $3,850 | $13,200 | $36,300 |
| Welding Business | Construction & Trades | $16,500 | $44,000 | $110,000 |
| Winery | Food & Beverage | $550,000 | $838,200 | $3,300,000 |
| Yoga Studio | Health & Wellness | $16,500 | $88,000 | $220,000 |
Most Popular Business Types in Arizona
Restaurant
Food & Beverage
$192,500 – $825,000
Cleaning Business
Home Services
$1,650 – $40,700
Landscaping Business
Home Services
$11,000 – $132,000
Real Estate Agency
Professional Services
$11,000 – $77,000
Gym & Fitness Center
Health & Wellness
$55,000 – $1,100,000
Yoga Studio
Health & Wellness
$16,500 – $220,000
Licenses & Permits in Arizona
General Business License
Arizona does not have a statewide general business license. Businesses must register with the Arizona Department of Revenue for Transaction Privilege Tax (TPT) purposes if they sell goods or certain services. Individual cities and counties in Arizona may require their own business licenses, especially Scottsdale, Tempe, and Phoenix which have active enforcement.
Industry-Specific Licenses
- Food Service Establishment License — Arizona Department of Health Services or County Health DepartmentCost: Varies — contact agency • Renewal: Annual
- Contractor License — Arizona Registrar of ContractorsCost: Varies — contact agency • Renewal: Biennial
- Cosmetology Salon License — Arizona State Board of CosmetologyCost: Varies — contact agency • Renewal: Biennial
- Real Estate Broker License — Arizona Department of Real EstateCost: Varies — contact agency • Renewal: Biennial
- Child Care Facility License — Arizona Department of Health Services — Child Care LicensingCost: Varies — contact agency • Renewal: Annual
- Liquor License — Arizona Department of Liquor Licenses and ControlCost: Varies — contact agency • Renewal: Annual
- Landscaping Contractor License — Arizona Registrar of ContractorsCost: Varies — contact agency • Renewal: Biennial
- Motor Vehicle Dealer License — Arizona Department of TransportationCost: Varies — contact agency • Renewal: Annual
Home-Based Business Rules
Arizona allows home-based businesses under most municipal zoning codes as a 'home occupation' with restrictions on signage, employee visits, and customer traffic. State law (A.R.S. § 9-500.39) limits local governments from outright prohibiting home-based businesses. Many Phoenix metro cities have updated their ordinances to allow more types of home occupations after the pandemic.
Arizona Business Resources
SBA District Office
Arizona SBA District Office — Phoenix
Secretary of State
https://azsos.gov/businessZoning Information
Arizona cities manage zoning independently. Phoenix and Tucson have detailed commercial zoning codes with separate designations for retail, office, and industrial uses.
Health Department Notes
Food establishments require a permit from the Arizona Department of Health Services or the county health department. Arizona operates a cottage food law with sales up to $75,000/year.
Workers Compensation
Required for all employers in Arizona. Agricultural employers are exempt if they employ fewer than 4 employees for fewer than 30 days per year.