Deal alert! Northwest will form your LLC for $39 (60% discount). See details.
After you start an Arizona LLC, you may need to register for certain taxes and business licenses.
One of the most common Arizona tax requirements is the Arizona Transaction Privilege Tax (TPT). And to pay it, you’ll need a Transaction Privilege Tax License.
We’ll explain it all in this guide.
What is the Arizona Transaction Privilege Tax?
The Transaction Privilege Tax (TPT) is a tax on an LLC for the privilege of doing business in the state of Arizona.
It’s also called Sales & Use Tax.
If you sell products to consumers in Arizona, you may need to collect sales tax. And to do so, you need to get a Transaction Privilege Tax License.
This license allows you to collect sales tax on retail sales in the state where you do business.
It’s sometimes also called a:
- sales tax permit/license
- seller’s permit
- resale license
- wholesale license
- reseller permit
They all mean the same thing. And you can get a TPT license for your LLC from the Arizona Department of Revenue (DOR).
Do I need a TPT license?
If your Arizona business is subject to the Transaction Privilege Tax, you must get a TPT License. Additionally, you’ll need to file returns and pay the applicable taxes.
For example, retail sales and certain business activities are required to get a TPT License.
The Arizona Department of Revenue can help you figure out if your LLC needs to pay the Transaction Privilege Tax using these resources:
- Arizona Department of Revenue: Transaction Privilege Tax
- Arizona Department of Revenue: TPT License
- Arizona Department of Revenue: Retail Sales Subject to TPT
- Arizona Department of Revenue: Do I Need a TPT License
How do I get a Transaction Privilege Tax License?
There are 3 ways to apply for a TPT License:
- Online
- By mail
- Walk-in
Online
You can apply for a TPT License online using the Arizona Department of Revenue: AZTaxes User Account Registration.
Note: You can read the Arizona Department of Revenue’s instructions on how to set up your AZTaxes account here: Transaction Privilege Tax — Setup Your AZTaxes.gov Account.
By mail
To apply for your LLC’s TPT license by mail, use the Joint Tax Application for a TPT License (Form JT-1).
Walk-in
You can also register for a Transaction Privilege Tax License in person.
There are 3 walk-in locations: Phoenix, Mesa, and Tucson.
You’ll also use Form JT-1 for walk-in registration.
You can find the walk-in addresses here: Arizona Department of Revenue: Applying for a TPT License.
And you can access the TPT forms and more state resources here:
- Arizona Department of Revenue: TPT Forms
- Arizona Department of Revenue: E-Services for Businesses in Arizona
- AZTaxes.gov: Arizona Transaction Privilege & Use Tax Rate Look-Up Tool
How long does it take to get an Arizona TPT license?
Once you submit your registration paperwork, the Arizona DOR will issue your LLC a TPT License in about 3-5 business days.
Why is Form JT-1 called the “Joint Tax Application”?
Form JT-1 is called the Joint Tax Application because it can register your LLC for multiple tax requirements. The form’s primary purpose is to register businesses for the Transaction Privilege Tax (and issue them a TPT License).
However, if you’re an employer, the JT-1 will also register your LLC for Employer Withholding and Unemployment Insurance with the Arizona Department of Economic Security (DES).
Do I need to renew a TPT license?
Yes, TPT Licenses need to be renewed every year by January 1st.
You can read more about the renewal requirements here: Arizona Department of Revenue: Renewing a TPT License.
Do I need a Resale Certificate?
If you are buying products in Arizona that will be used for resale, you’ll need to fill out an Arizona Resale Certificate (Form 5000A).
Then you’ll need to give it to the vendors who sell you those products or materials.
How do I get a Resale Certificate?
After you get your TPT License Number, you can then complete the Arizona Resale Certificate and provide it to your vendors.
Need help with TPT/sales & use tax?
You can automate your Arizona TPT filings with TaxJar. TaxJar helps online sellers as well as brick-and-mortar businesses in Arizona.
TaxJar also has helpful guides on state sales tax: Sales Tax Guide for Businesses.
And if you have any questions about whether you need a Transaction Privilege Tax License, you can contact the Arizona Department of Revenue at 602-255-3381.
Tip: Save time by hiring an expert. We recommend using TaxJar. They'll help you register for, collect, and pay sales tax.
Arizona Transaction Privilege Tax & TPT License FAQs
Do I need any other licenses or permits for my LLC?
The short answer is maybe. Whether or not you need other business licenses for your LLC depends on your business activities, industry, and where your Arizona LLC is located.
Business licenses and permits for an Arizona LLC may be issued at the state and local municipal levels.
Learn more about federal, state, and municipal licensing requirements in our free guide: Arizona LLC Business Licenses and Permits.
Do I have to pay an annual fee for my LLC in Arizona?
No. Although most states require LLCs to file an Annual Report or pay an annual fee, Arizona is one of the few states that doesn’t require LLCs to do either. Said another way, there is no Arizona LLC Annual Report.
Keep in mind that this is separate from federal, state, and local income taxes, which Arizona does require you to pay.
Do I have to file other taxes for an Arizona LLC?
Each LLC has a different tax situation, so the taxes filed for an Arizona LLC varies.
The amount of taxes owed for your LLC depends on rules like:
- how your LLC is taxed
- state and local tax rules
- any sales and use tax requirements, or
- whether you have employees
Additionally, some business types are required to register for industry-specific taxes.
You can read more about Arizona LLC tax requirements in our guide on Arizona LLC Taxes.
References
Arizona Department of Revenue: Joint Tax Application for a TPT License
Arizona Department of Revenue: Step-By-Step Instructions to Completing the TPT-2 Form
Arizona Department of Revenue: Transaction Privilege Tax — Setup Your AZTaxes.gov Account
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
