Starting a Business in Arizona
A new business in Arizona is in your reach. Have you been thinking about what you need to start a business in Arizona? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in Arizona during a recession?
A New Business in Arizona: Pluses and Minuses
Business Insider puts Arizona in the middle ten when it comes to starting a new business; this is for the entire nation. And it is according to a 2016 article.
The state’s per capita GDP is in the bottom half of the country.
It also does not do well in education levels for possible employees.
But Arizona also has a large availability of employees. There is also a high density of startup companies.
Hence if you want to start business in Arizona, you will have company. And you will have your choice of workers, when it is time to start hiring staff.
Changes for the Better, or for the Worse?
In 2018, Forbes put Arizona in the somewhat covet-worthy 17th slot. But Fit Small Business tossed Arizona into the cellar, giving it number 47.
But which is right?
Of course, keep in mind all three of these sites have differing methodologies.
Forbes praises Arizona for its fifth-best growth prospects and its tenth-best labor supply. The state’s economic climate also has a decent ranking. Its regulatory environment is nearly in the middle, at 23. But business costs and quality of life both rank below average.
Fit Small Business says Arizona’s two best features are its taxes and its cost of living. But both of those only scored 21. The labor market was an abysmal 45th – this is a measurement of the desirability of living in an area and the number of people with bachelor degrees. And its cost of starting a business was a sorry 48.
Hence Arizona will have a pool of available workers – but they might not have the educational level you need. Are you prepared to pay for training?
Start a New Business in Arizona – Sole Proprietors in Arizona
Companies that are sole proprietorships can often come with risks.
One is that an owner’s personal assets could be at risk in the event of a business lawsuit.
If a business owner wishes to avoid these risks, they can register for a trade name in Arizona.
They can create a fictitious name for a business different from their own personal identity.
Visit the Tradenames and Trademarks Q & A webpage, run by the Arizona Department of State, for more information.
Start a New Business in Arizona – Arizona Top Industries
According to the Arizona Commerce Authority, the top industries for the state are technology and innovation; and aerospace and defense.
More top industries are bioscience and health care; and manufacturing.
Even more top industries include film and digital media; and business and financial services.
Arizona is also a location which many people retire to these days.
Savvy business owners should be able to cater to one of these popular niches. Such potential new business opportunities can maybe include trucking in parts for virtually any industry; or food services and hospitality for the film industry.
More ideas are maybe parts manufacturing and invention for the sciences or defense. Still more ideas are inventions and services for doctors and nurses and the various places where they work.
These can include hospitals, hospices, nursing homes, and all other public and private medical care facilities.
Here is everything that is required to start a business in Arizona.
Start a New Business in Arizona – Arizona New Business Secretary of State Requirements
Register a Business Name
To avoid some risk, the sole proprietor can register for a trade name. This allows for the creation of fictitious name for a business different from an owner’s personal identity.
Visit the Tradenames and Trademarks Q & A webpage run by the Arizona Department of State for more information. Check the Arizona state corporation database online at the official Arizona government website.
Business Permits and Licenses
Local Permits and Licenses
Check out the State of Arizona Department of Revenue website.
Alliance Virtual Offices has Arizona virtual business offices in Chandler, Gilbert, Peoria, Phoenix, and Scottsdale.
For Arizona virtual office space in Maricopa, Mesa, Oro Valley, Surprise, and Tucson a business owner can go to DaVinci.
For other areas of the state, business owners might want to try Regus for Arizona virtual business space.
Also, business owners can maybe talk to local entrepreneurs.
Or they can maybe even talk to computer user groups in an effort to find help in this area.
Start a New Business in Arizona – Build Business Credit
Business credit is credit in a small business’s name. It doesn’t link to an entrepreneur’s individual credit, not even if the owner is a sole proprietor and the only employee of the business.
As a result, a business owner’s business and individual credit scores can be very different.
Start a New Business in Arizona – Small Business Fundability™
A small business needs to be Fundable to credit issuers and merchants.
That’s why, a business will need a professional-looking website and email address. And it needs to have website hosting bought from a hosting merchant.
Plus, company telephone numbers must have a listing on ListYourself.net.
Additionally, the company telephone number should be toll-free (800 exchange or the like).
A company will also need a bank account devoted strictly to it, and it must have all of the licenses essential for operating.
Start a New Business in Arizona – Dealing with the IRS
Visit the Internal Revenue Service website and obtain an EIN for the small business. They’re free of charge. Select a business entity such as corporation, LLC, etc.
A business can start off as a sole proprietor. But they should change to a kind of corporation or an LLC.
This is in order to reduce risk. And it will take full advantage of tax benefits.
A business entity will matter when it pertains to taxes and liability in case of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and tax obligations. No one else is responsible.
Start a New Business in Arizona – Starting Off the Business Credit Reporting Process
Begin at the D&B website and get a free D-U-N-S number. A D-U-N-S number is how D&B gets a small business into their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s websites for the business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.
In this manner, Experian and Equifax will have activity to report on.
And with an established business credit profile and score you can begin to get more credit.
These types of accounts often tend to be for the things bought all the time, like marketing materials, shipping boxes, and office furniture.
But first of all, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are typically Net 30, instead of revolving.
Therefore, if you get approval for $1,000 in vendor credit and use all of it, you will need to pay that money back in a set term. Like within 30 days on a Net 30 account.
Start a New Business in Arizona – Monitor Your Business Credit
Know what is happening with your credit. Make certain it is being reported and fix any mistakes as soon as possible. Get in the practice of checking credit reports and digging into the particulars, and not just the scores.
We can help you monitor business credit at Experian, Equifax, and D&B for 90% less.
Update Your Information
Update the details if there are inaccuracies or the relevant information is incomplete.
Start a New Business in Arizona – Fix Your Business Credit
So, what’s all this monitoring for? It’s to challenge any inaccuracies in your records. Mistakes in your credit report(s) can be corrected. Disputing credit report mistakes typically means you specifically spell out any charges you dispute.
A Word about Business Credit Building
Always use credit smartly! Never borrow more than what you can pay off. Track balances and deadlines for payments. Paying off on schedule and fully will do more to increase business credit scores than almost anything else.
Building business credit pays off. Good business credit scores help a company get loans. Your lending institution knows the company can pay its debts. They understand the small business is bona fide.
The business’s EIN connects to high scores and lenders won’t feel the need to require a personal guarantee.
Business credit is an asset which can help your small business for many years to come. Learn more here and get started toward establishing business credit.
Learn more here and get started toward opening a new business in Arizona.
Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country.
Arizona’s Response to COVID-19
Arizona has the following response to the novel coronavirus. On March 11, Governor Doug Ducey declared a state of emergency. The Arizona Department of Health Services can now waive licensing requirements to provide healthcare officials with assistance in delivering services. The Governor has communicated with the SBA, seeking an Economic Injury Disaster Loan declaration. This will make it possible to get government backed small business loans.
Arizona consumers and businesses reported instances of phishing attempts by bad actors, when it comes to the Paycheck Protection Program.
On April 12, it was announced that Arizona colleges and universities will be getting millions from the CARES Act.