How to Set up a Sole Proprietorship in Arizona
Consider registering your business name., Your business name must be distinctively different from any other business name already on the register., Limit ownership of the business to you alone., Enjoy the benefits that come with being a sole...
Step-by-Step Guide
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Step 1: Consider registering your business name.
Although its not required, registering your business name with the Arizona Secretary of State will keep others from registering a corporation, limited liability company or limited partnership with the same business name. -
Step 2: Your business name must be distinctively different from any other business name already on the register.
Find the application to register your business name on the Arizona Secretary of State website ( http://www.azsos.gov ).
You can also use the database to search previously registered names.
If you don't file a "Doing Business As" (DBA) name for your company, your personal name will be listed as the sole proprietor.
Most banks require a DBA name for your business to open a business bank account.
Customers and vendors may see you as a more legitimate business with an actual business name. , Per law, a sole proprietorship must have only one owner.
Because Arizona is a community property state, a husband / wife team may be considered a sole proprietorship. , You aren't required to conduct an annual meeting.
There are no annual fees and no reports to be filed with state commissions.
The owner of a sole proprietorship in Arizona maintains a level of privacy unless the business is registered with the Arizona secretary of state.
Once registered, the trade name and owner become a matter of public information. , As the business owner, all liability for the company rests on your shoulders.
The business and the owner are treated as one and the same.
For tax purposes, your business income and losses are recorded within your own individual federal tax documents.
The high amount of business deductions used in sole proprietorship can sometimes raise a red flag to the IRS.
Sole proprietorship have the highest risk of an audit. , You may be required to carry special permits.
Some examples of small businesses that are heavily regulated in Arizona include pawn shops, storage businesses, arts and crafts sellers, dance studios, and precious jewels and metals dealers.
If you are an employer, you must adhere to federal regulations regarding your workers' hours, wages and working conditions, as well as The Arizonans with Disabilities Act.
Sole proprietorship may be subject to both local or state licensing.
Some of those businesses required to state licensing include architects, morticians, veterinarians, physical therapists, private investigators, security guards and pest control operators. -
Step 3: Limit ownership of the business to you alone.
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Step 4: Enjoy the benefits that come with being a sole proprietor in Arizona.
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Step 5: Know the obligations and limitations of a sole proprietorship.
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Step 6: Research any other regulations that would apply to your sole proprietorship in Arizona such as a special permit or business license.
Detailed Guide
Although its not required, registering your business name with the Arizona Secretary of State will keep others from registering a corporation, limited liability company or limited partnership with the same business name.
Find the application to register your business name on the Arizona Secretary of State website ( http://www.azsos.gov ).
You can also use the database to search previously registered names.
If you don't file a "Doing Business As" (DBA) name for your company, your personal name will be listed as the sole proprietor.
Most banks require a DBA name for your business to open a business bank account.
Customers and vendors may see you as a more legitimate business with an actual business name. , Per law, a sole proprietorship must have only one owner.
Because Arizona is a community property state, a husband / wife team may be considered a sole proprietorship. , You aren't required to conduct an annual meeting.
There are no annual fees and no reports to be filed with state commissions.
The owner of a sole proprietorship in Arizona maintains a level of privacy unless the business is registered with the Arizona secretary of state.
Once registered, the trade name and owner become a matter of public information. , As the business owner, all liability for the company rests on your shoulders.
The business and the owner are treated as one and the same.
For tax purposes, your business income and losses are recorded within your own individual federal tax documents.
The high amount of business deductions used in sole proprietorship can sometimes raise a red flag to the IRS.
Sole proprietorship have the highest risk of an audit. , You may be required to carry special permits.
Some examples of small businesses that are heavily regulated in Arizona include pawn shops, storage businesses, arts and crafts sellers, dance studios, and precious jewels and metals dealers.
If you are an employer, you must adhere to federal regulations regarding your workers' hours, wages and working conditions, as well as The Arizonans with Disabilities Act.
Sole proprietorship may be subject to both local or state licensing.
Some of those businesses required to state licensing include architects, morticians, veterinarians, physical therapists, private investigators, security guards and pest control operators.
About the Author
Anna White
Dedicated to helping readers learn new skills in DIY projects and beyond.
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