Arizona LLC Business Licenses — Step 7 of 8
Arizona doesn't call it "sales tax" — it's the Transaction Privilege Tax (TPT), and most LLCs selling goods or taxable services need a license for it. Layer in your city's own license and any industry-specific permits, and here's exactly what applies to you.
If your Arizona LLC sells taxable goods or services, you need a Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue (ADOR) — $12 for the state portion, plus any applicable city license fee. Apply using the Joint Tax Application (Form JT-1). Most cities also require their own city business/privilege license, and regulated professions need separate state board approval.
- TPT license (state)
- $12
- Issued by
- ADOR
- Renews
- Annually, by Jan 1
- Required for
- Taxable sales/services
- City license
- Often required too
- Application form
- JT-1
- Next step
- Step 8 →
Arizona layers its business-authorization system across three levels: a state TPT license, a possible city business/privilege license, and any professional license your industry needs. None of these are the same as your publication requirement — they're issued by entirely different agencies for different purposes.
- TPT License — issued by the Arizona Department of Revenue (ADOR), required for most businesses selling taxable goods or services. State portion costs $12; total cost depends on city add-ons.
- City business/privilege license — most Arizona cities require their own registration and levy their own portion of TPT on top of the state's.
- Professional/occupational licenses — regulated fields (contracting, healthcare, cosmetology, real estate) need approval from the relevant state licensing board.
- Out-of-state sellers — remote sellers and marketplace facilitators meeting Arizona's economic nexus threshold need a TPT license too, even without a physical presence in the state.
License Finder Checklist
Check what applies to your business and we'll list the licenses most likely to apply:
Where Each License Comes From
TPT License
Apply through the Arizona Joint Tax Application (Form JT-1) at AZTaxes.gov — the same form also covers use tax and employer withholding/unemployment insurance if you have employees. You'll need your EIN to complete it; single-member LLCs specifically must have one to get a TPT license. The state portion is $12; renewal is due annually by January 1, with penalties for late renewal.
City business/privilege license
Handled separately by each city's licensing office. Most Arizona cities — Phoenix, Tucson, Scottsdale, Mesa, and others — require their own business license and levy their own city TPT rate on top of the state's. Rates and requirements vary significantly by municipality.
Professional/occupational licenses
Regulated trades route through standalone state boards — contractors through the Registrar of Contractors, healthcare through the relevant medical board, cosmetology through the Board of Cosmetology — each separate from your LLC formation and TPT registration.
TPT isn't quite the same as a typical sales taxTechnically, TPT is a tax on the vendor for the privilege of doing business in Arizona, not a tax on the buyer — though in practice, most businesses pass it through to customers as a line-item, just like sales tax elsewhere. The distinction matters legally: you as the business owner are always the one liable to the state, even if you never collect a dime from a customer to cover it.
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Arizona Business Licenses — FAQ
Ahmad Adil is the founder and CEO of LLC School. The guidance here — the TPT license system, its $12 state fee, the EIN requirement, annual renewal, and typical city and professional licensing layers — reflects current Arizona Department of Revenue guidance. This is educational information, not legal or tax advice.
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