With more than 611,000 small businesses, Arizona is a haven for small businesses. If you want to establish your own business, there are specific steps you must take.
This guide was created to assist you in understanding how to establish an enterprise in Arizona. Phoenix small business cpa can help you understand all this better.
Before You Begin
Before beginning a new business, you must evaluate your business concept and ensure it is operationally viable. This is best accomplished through the creation of an enterprise plan that defines the nature of the business, its target market, and marketing and financial strategies.
Once the business commences, the business plan should be revised and reviewed multiple times a year.
Select Your Business Type
Prior to formalizing anything, you will need to select a business entity.
Register Your Firm
Before registering your business, you will need to confirm that the name you intend to utilize is not already in use. Search the database of the Corporation Commission.
After determining the form of entity you wish to create, you will register it with the Arizona Secretary of State. Sole proprietors who use a name apart from their own legal name must pay $10 to the Arizona Secretary of State to register a trade name.
Set Up Your Finances
Setting up your new business’s finances is an essential next step. On the IRS website, the majority of business entities will need to obtain an employer identification number (EIN). This nine-digit number identifies your company for the purposes of taxation, when opening a bank account, and when establishing a state unemployment account.
Acquire Funding
Every business requires initial funding, even if it is self-financing through personal reserves. If your business plan requires substantial funding, you may want to apply for a small business loan from the SBA or locate an investor for your company. A well-written business strategy can play an important role in securing the necessary funding.
Determine Your Location
There is no standard procedure for establishing a business location. Many entrepreneurs begin as home-based operations. However, if your business model necessitates a more professional office space, you will need to locate one. A company that relies significantly on foot traffic will probably target retail locations or office buildings with high foot traffic.
Get Licenses and Permits
The state of Arizona does not require a broad business license, but you should verify with your district or municipality to determine if your business requires any local licenses or permits. These must be in order before engaging in commercial activities.
Get Insurance
Before exposing your business to the public, you ought to think about the insurance policies that may be necessary. Low-cost protection against common liability claims, such as slip-and-fall accidents and professional mistakes, is provided by insurance. If you lease a property, your proprietor will likely ask for a general liability policy.