When registering a new business in Arizona (LLC, Corporation, DBA, etc), you are required to comply with Arizona business taxes. This is a necessary obligation so that you can operate as a legal entity in the state.
Failure to comply with the needed requirements may (and most likely will) result in penalties and sanctions. Taking care of all your Arizona business tax requirements is a tedious task but not impossible. To help you sort the requirements out, you can use this guide.
As part of starting a business in Arizona, you are required to regularly comply with Arizona Corporate Income Tax. Again, as a constant reminder, failure to keep up with these requirements may result sanctions imposed by the state government. Refer to this NOLO guide for information regarding this business tax. It’s an excellent free online resource.
The state encourages new small businesses as this generates local employment opportunities and improves the state’s economy. In line with this, several tax incentives are offered by the state to give tax credit to businesses when certain criteria are met. Visit the Arizona Incentives website to get more details on how to qualify for these incentives.
As a business entity in Arizona, you are also required to process the requirements for sales tax. In Arizona, the sales tax is more commonly known as the Transaction Privilege Tax. Visit this section of the Alaska Department of Revenue website to familiarize yourself with the TPT.
With the numerous requirements you need to sort out for your business taxes, you need to make sure that you don’t miss a thing. In line with this, always refer to the state’s Department of Revenue when it comes to your tax obligations. This tax brochure should also guide you in the area of Arizona business taxes.
Managing all your business tax requirements and finances can be harder than you think. Even if you don’t have hundreds of transactions taking place per day, the sheer amount of paperwork can also be quite overwhelming. However, you can make the process of keeping it under control easier though with the help of a small business accounting software.
FreshBooks, Xero, and QuickBooks are small business accounting softwares that will simplify the accounting process for you. They help you keep track of your finances, taxes, and expenses – on a budget. Visit each review and start a free trial to see which is right for you.
Please remember that this article is neither a legal nor tax advice; it is only an informational article. An accountant/lawyer is still the best person to consult when questions about the complexities of Arizona business taxes or starting a new business.