Arizona, thank you. You gave us Steven Spielberg, Stevie Nicks, John McCain and Cesar Chaves. We gaze in awe at your Grand Canyon and Petrified Forest. We don't know how to translate your state tree, the Palo Verde, but we love it anyway.
Your highways are mosaic-ed, you decorate with more types of cacti than we know how to pronounce, and we don't need to own galoshes to trek your fields. You're awesome, Arizona.
Arizona is also a supportive and friendly environment in which to register a small escort business - heck, they even have some joint forms so you can reduce the paperwork headache! In this article you'll find clear step-by-step advice on how to do just that. For more information on why it's vitally important to register your business, refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
Your state has provided you with a nifty little search engine that can help you discover if your desired name is taken in Arizona.
For more information on DBA names and limitations in Arizona, go to AZsos.gov/business_services.
Step four: Register your business / business name
Sole Proprietorship:
In Arizona you are not required to register your sole proprietorship as a business with the state, and will file with your personal taxes. However, it is common practice to register your name / DBA as a trade name with the state. For more information on if this is a good choice for your business, refer to our article Do I want to be a sole proprietor?.
To register your trade name in Arizona, you need to fill out a trade name application. The form contains basic information about what the business is, who owns it, where, and anyone else responsible. A $10 filing fee is due, and the registration will be complete in 2-3 weeks. Download the form from AZsos.gov.
Partnership:
If forming a partnership in Arizona, it must be a limited partnership. This means at least one person act as a general partner, running and maintaining the business, and at least one acts as a limited partner, being responsible for nothing but an investment. To register your partnership you need to fill out an lpcert97 form. It contains basic information such as the name, business, location and applicable dates of partnership creation, and must be signed by all the members. You can download the lpcert97 form and get more information at AZsos.gov/business_services/partnerships/.
Corporation:
To register your corporation in Arizona, you'll need to know a few things. You'll have to have a Board of Directors set, and their signatures at the ready to be signed on the articles. Once your corporation has been approved, you'll need to publish copy of the document / announcement of your company within 60 days in a local or state newspaper. So this is a big step when going public with an escort service.
The Arizona Articles of Incorporation is a cf0042 form that you can download at AZcc.gov/divisions/corporations. The document contains some helpful resources and a checklist of things to do before filing the form, as well as what you'll have to attend to after you've been approved. There is a $60 application fee for this form, with an additional $35 if you want the process expedited.
LLC:
In Arizona, you'll need to file an Article of Organization form. You'll need basic information, such as who your members are, what your business does, where it's located etc. You can find this ll004 form and more information, including what other forms you'll need to file throughout the process here. Or you can download form ll004 directly. There is a $50 filing fee for this form, with an additional $35 if you want the process expedited.
More information on how to register your corporation or LLC in Arizona.
Step six: Register for your Arizona state and local city taxes
There are a few basic types of taxes small businesses in Arizona may register for:
- Individual Income Tax: The state collects income tax on each person making a buck in Arizona. If you're a sole proprietor, you'll file your business profits along with your income tax, completed after you've filed your federal return.
- License and Registration Tax: If you have employees, you'll file an Arizona Joint Tax Application (form JT-1) to cover Employer Withholding and Unemployment Insurance. This form helps you file for several on one application!
- Partnerships Tax Returns: Partnerships must file a 165 tax return form to determine what taxes are required of them. You can get this form at AZdor.gov.
- Corporate Income Taxes: If you are a corporation, you do need to pay income taxes, as well as employment taxes. This tax varies by level of your profits. More information can be found at AZ.gov.
- Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you'll need to file your own self-employment taxes for social security and Medicaid. You can download form 1040 and get more information at IRS.gov/formspubs.
More details on what taxes you'll have to pay in Arizona, including a wonderful Guide to Taxes for Arizona Businesses, can be found at AZdor.gov/Publications.aspx.
You can file some taxes electronically and get more information at AZtaxes.gov.
Step seven: Get necessary licenses and permits
There is no one basic "business license" in Arizona, and chances are you won't have to register any for your escort service. Because you most likely won't have a storefront or need something like a health or sign permit, you're probably good to go. However, you can search on your city's website to see if there are local permits you may need to conduct business at AZcommerce.com.
Search for license and permit information in your region at Business.Gov.
More information on corporations and LLCs is available at The Arizona Corporate Commission.
Find out how to register an escort business in each state of the USA.
Related resources:
Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
