Start a Business in Tempe, AZ: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Tempe, AZ, is a plus for any entrepreneur. In general, setting up any form of business in Arizona, US, is the initial step to building an international brand.
Entrepreneurs across the globe are interested in starting and expanding their businesses in Tempe, AZ. With an urban population of 191607 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in Arizona. Like most places in the US, Tempe, AZ also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Tempe, AZ has a proper business environment for all.
In this article, you will read about how to start a business in Tempe and why you should choose Tempe to start and run your business. We recommend you check below the important facts about Tempe, AZ; these might help you.
On this page, you’ll learn about the following:
- How to Start a Business in Tempe, AZ
- Other Things to do After Starting Your Business
- Important Tempe Stats for Starting a Business
- Reasons to Start a Business in Tempe
- FAQ About Tempe, AZ
Tempe, AZ Household Income Statistics
|Tempe Median household income||61290 USD|
|Tempe households with dual income earners||54.6 %|
|Tempe households $150K+ Income||11.6 %|
|Tempe households $100K+ Income||26.9 %|
|Tempe households $100-150K Income||15.3 %|
|Tempe households $75-100K+ Income||13.2 %|
|Tempe households $50-75K+ Income||19.2 %|
|Tempe households $35-50K+ Income||12.8 %|
|Tempe households $25-35K+ Income||7.8 %|
Tempe, AZ Education & Labor force Facts
|Tempe residents with a bachelor’s degree (or equivalent)||27 %|
|Tempe residents with at least a 4-year degree||46.5 %|
|Tempe residents with a graduate degree||19.5 %|
|Tempe residents with a high school diploma but no more||15.3 %|
|Tempe residents with less than high school education||6.5 %|
|Tempe residents with some college but no more||31.7 %|
|Tempe residents with a Bachelor’s degree or higher (STEM fields)||50.2 %|
|Tempe households that own (rather than rent) their residence||40.3 %|
|Tempe residents 16 and older in the labor force||69.3 %|
|Tempe residents unemployed||6.1 %|
Tempe, AZ Demographics
|Tempe residents aged 0-9||8.3 %|
|Tempe residents aged 10-19||12.6 %|
|Tempe residents aged 20-29||29.6 %|
|Tempe residents aged 30-39||15.2 %|
|Tempe residents aged 40-49||9.3 %|
|Tempe residents aged 50-59||9.2 %|
|Tempe residents aged 60-69||9.1 %|
|Tempe residents aged 70-79||4.2 %|
|Tempe residents aged over 80||2.7 %|
|The average size of resident families in Tempe, AZ||3.03|
|Estimated population per square kilometer in Tempe, AZ||1852|
|Tempe, AZ urban population (estimate)||191607|
|Tempe, AZ municipal population (estimate)||191607|
Now that you know what makes Tempe of Arizona good for business, let’s get started with the exact steps on how to start a business in Tempe.
How to Start a Business in Tempe, AZ
Starting a business in Tempe, AZ, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in Arizona, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Tempe.
Step 0: Decide on What Business to Start
This is the first thing you work on, the type of business you want to start in Tempe. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,
- Through market research on demand trend
- Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
- What competitors are doing
- SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
- Your targeted buyers
Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.
Step 1: Choose Your Business Structure
The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a Arizona LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.
Step 2: Name Your Business
The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of Arizona to do the Arizona LLC name search before you pick the available name. Below are some of the naming rules you need to follow,
- You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector.
- If you are forming an LLC in Arizona, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
- The name should reflect the nature of your business. Any name that can confuse people should not be picked.
- You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
- You can reserve your business name for a certain time before you form your business in Tempe, AZ by filing a name reservation application.
The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.
Step 3: Get a Registered Agent
A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a Arizona LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Tempe can be a registered agent. However, there are some requirements to becoming a registered agent.
- The person has to be 18+ years of age.
- Must be a citizen of the Arizona
- Must have a physical street address in the Arizona
- Must have legal rights to conduct business in the Arizona
Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.
Step 4: Register Your Business
The next step is to register your business under the Secretary of State, Arizona. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the Arizona SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Tempe, AZ. Your Arizona LLC articles of organization should have the following details about your business
- Company/Business name, address
- Registered Agent Name, address
- Member-managed or manager-managed (in case of LLC)
- Type of business
Depending on the type of business structure, you may have to add some more information to the formation document.
Step 5: Write the Operating Agreement
An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,
- About Business
- Members and management
- Capital contribution
- Profit Distribution
- Change of membership
In future, if any member wants to leave the company or you want to dissolve the business, then the Arizona operating agreement has everything recorded, from clauses to contributions.
Step 6: Obtain EIN
EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.
Step 7: Get Business Bank Accounts
Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Tempe, AZ. It increases your business credibility and liquidity. It will also be helpful for business loans.
Step 8: Create Your Business Website
Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.
Other Things to do After Starting Your Business
- Once your company is set in the Tempe, Arizona, you need to file your taxes and apply for licenses (if needed).
- Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.
Important Tempe Stats for Starting a Business
Before you start a business in Tempe, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.
Education & Employment
Tempe has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.
As we talk about the urban population density, the young population percentage in the city is approximately 29.6 (people in their 20s) and 15.2 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 29.8. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Tempe has approximately 2.7 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.
Another important factor to mention about Tempe is the home value of owned properties. The average value of owned houses is 287431. Also, the percentage of people living in their own houses is 40.3. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.
It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Tempe who still do not have health insurance. The rate of people not having health insurance is 9.7. This depicts the lifestyle and overall health demography of Tempe. As you plan to start your business in this city, you must consider this stat as well.
Income & Lifestyle
The income pattern of the people in this city is given in the table (Income) above. In Tempe, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.
Also Check – How to Start Business In Paradise, NV
Reasons to Start a Business in Tempe
Tempe offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Tempe. Here are some of the reasons,
Stable Economic Growth
Tempe or any other city in Arizona has stable economic growth and an environment that helps any business to grow successfully. The economic structure of Arizona shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.
Minimize Personal Liabilities of the Entrepreneur
If you’re considering starting an LLC in Tempe, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Tempe is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.
Federal and State Tax Relaxation
There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the Arizona LLC tax structure to know more about the tax structures for LLCs in the state.
Government Incentives for Entrepreneurs
Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in Arizona or any other state. That means if you are operating any business in Tempe, then Arizona State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.
Low Corporate and Other Business Taxes
Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in Arizona. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.
Skilled Labour & Quality Manpower
In Tempe, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 69.3 is the percentage of labour participation. Hence, it is clear that having a business in Tempe will make a lot of difference to the existing labor force.
Demand for New Market and Industry
In Tempe, Arizona, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Tempe.
If we follow the US Data, the median value of commute time for the residents to their work is approximately 21.3. If you are starting a business here, you must keep in mind that commutation can be a point to consider.
Intellectual Property Protection
The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.
Tempe (aka ) is ranked at 2 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Tempe. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Tempe is 15.2. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.
Similar Read – How to Start Business In Vernon Hills, IL
When Should You Start Business In Tempe Arizona
Whether you’re starting a small business in the Phoenix Metropolitan Area or expanding to the area, there are plenty of opportunities for you. Arizona is one of several states with a significant increase in new entrepreneurship. However, it is important to understand the requirements to legally operate a business. For example, you will need to register for a business license. This is a requirement for many types of business, including general partnerships, limited liability companies (LLCs), sole proprietorships, and others. Depending on your business, you may also be required to pay taxes and fees. You will also want to register for a social media account.
A business bank account can help you avoid mixing personal expenses with business expenditures. It can also help you build credit for your business. You may want to consider getting a business credit card as well. This can be useful if you have a lot of expenses to pay, as it can be used to cover your bills.
You may also want to consider purchasing business insurance. You can do this by finding a local insurance agent or broker. They can help you choose the right insurance for your business. This can help protect your company’s finances and allow you to pay for medical expenses for your customers. You may also want to consider a commercial auto insurance policy, as these may be necessary if you’ll be driving customers to your location.
If you’re going to be performing any business activity that requires a license, such as selling goods or renting out a room, you will need to apply for a business license. The cost of this will vary depending on the city, but you can expect to pay anywhere from $8 to $168 per license. If you plan on doing any taxable business activities in the state of Arizona, you’ll also want to apply for a Transaction Privilege Tax license. This is also one of the most important business licenses you’ll need.
While you’re waiting for your business license to be approved, you may want to register for other important business documents. This includes registering for a business name. Choosing the right business name is important, as it will help you differentiate your business from others in the same sector. Similarly, you may want to consider getting a domain name for your business. The name you choose must be available in the domain name registry. You may want to also check out the Arizona Corporation Commission’s business database to see if the name you choose is available for use.
While you’re waiting for your license to be approved, you’ll want to make sure you’ve got all of the other business licenses you’ll need in order to do business in Tempe. You’ll also want to be prepared to pay regulatory fees, inspections, and other fees that are required by the city. It’s also a good idea to contact the city’s Tax and Revenue Division to find out what you’ll need to do in order to start your business in Tempe.
FAQ About Tempe, AZ
The procedure for registering a company in Tempe, AZ, is not difficult. Before you can begin, there are a few tasks to complete. If you are registering your company online in Tempe, AZ, it takes a day.
Starting an LLC in Tempe, AZ involves numerous considerations. To start, you must choose the kind of LLC you wish to establish. Single-member and multiple-member LLCs are the two forms of LLCs. After that, you must submit the required documents to the Secretary of State.
Yes, Tempe, AZ is a favorable city for LLCs. Tempe, AZ offers various advantages to those who desire to form an LLC. For instance, Tempe, AZ offers aspiring business owners tax breaks, financing, and other advantages.
To prevent other people from using your company name, you need register your business name with Tempe, AZ. With the secretary of state, you may register your company name. You must pay the reservation cost and may only register your company name for a limited period of time.
Similar to a sole proprietorship, an LLC is a kind of company in Tempe, AZ. You may get high revenue from your LLC if you establish one for any kind of company in Tempe, AZ. A pass-through tax system is one of the advantages of an LLC.
When you choose an area to live in Tempe, AZ, you have to consider a few things. The cost of living, commutation, would you find your buyers there, and finally, is it a good location in Tempe for your family. Decide on these before you move to Tempe.
What does it cost to get a tax identification number, while they are required for several purposes? Obtaining a tax ID number in Tempe, AZ is free. On the IRS website, you may get a tax ID number without cost.
Anyone qualified to do business in Tempe, AZ is eligible to be a registered agent there. An assigned registered agent must be named in each LLC in Tempe, AZ to receive the paperwork. In your LLC, you are free to act as your own registered agent.
When determining whether to purchase or rent a house in Tempe, AZ, there are several considerations to take into account. The price of both is the most crucial factor to take into account. Before making a choice when starting a company, it is essential to do market research and consult an agent.
Startups may thrive in Tempe, AZ. A hotbed for fresh ideas, the city is teeming with youth. For entrepreneurs, it’s ideal because of its cheap cost of living and good standard of living.
If you’re self-employed and live in Tempe, AZ, then you’ll need a business license. You can apply for a business license by completing the appropriate form and submitting it to Tempe, AZ authorities. You’ll need to include your business name, address, and the type of business you are engaged in.
If you wish to operate a company in Tempe, AZ, you’ll need a few things. Obtain a solid business strategy first. Then, look at what your rivals are doing and who your customers are. After you have finished your research, register your firm with the state and launch it.
A registered agent must be chosen if you wish to form an LLC in Tempe, AZ. It might be a friend, family member, spouse, boss, colleague, or even you. But you must choose a registered agent for your LLC.
In Tempe, AZ, you must complete an application form and submit it for approval if you want to create an LLC. The name of your LLC, the name of the registered agent, the registered agent’s address, and the name of the registered agent’s postal address must all be included.
For an LLC in Tempe, AZ, fees paid to the state are more than a sole proprietorship. Also, in Canada, the difference between a corporation and LLC is not very clear. So, an LLC in Tempe, AZ might be considered a corporation in Canada. LLCs are complicated to run.
The price of houses in Tempe, AZ can go down or can go up further. It is a bit difficult to say as the real estate business is growing with each passing day. Hence, chances of prices going down is less in Tempe, AZ.
It depends on the type of business you want to start. In Tempe, AZ, there might be government fees, license fees, and some other state taxes that you must be paid to start your business in the Tempe, AZ.
If you live in Tempe, AZ, and need an EIN number, you may get one from the IRS. Through the IRS website, you may get the EIN in just a few minutes. If you are the proprietor of the business, you may even get an EIN number for it.
You may be a Tempe, AZ small business owner who is unsure if you need insurance for your company. Yes is the answer! A sort of commercial insurance known as small business insurance provides protection against a range of commercial hazards. Damage to property, liabilities, and disruption of business are some of these dangers.
If you’re in Tempe, AZ, you can start your LLC yourself. You’ll need to go to the Secretary of State’s website and fill out the form. Provide your name, address, and the type of LLC, along with the registered agent’s details.
In Tempe, AZ, there are several opportunities to earn money online. Selling goods online is one of the most common. This is a fantastic approach to generate income from home in Tempe, AZ. Selling your own goods is another way to get income from home in Tempe, AZ.
Earning $18 per hour in Tempe, AZ, is not too awful. If you own a small company, particularly an LLC, you are set to go. In Tempe, AZ, establishing and maintaining an LLC is not expensive.
Yes. You must require workers’ compensation if your LLC in Tempe, AZ has employees. You probably may omit this if your business is employee-free. But in Tempe, AZ, it’s preferable to get general liability insurance. Arizona SOS’s website is a good place to look for additional information.
LLCs in Tempe, AZ have to renew every year. The process is simple, and there are a few things to keep in mind. First, you’ll need to file a form with the Arizona Secretary of State. Submit it online before the deadline and renew your LLC easily.
The city of Tempe is located in Arizona. In Tempe, AZ, a business license is necessary. Before starting a company, a license must be acquired. The city of Tempe is where the license is acquired. Tempe provides a wide range of enterprises.
A successful company may be launched in Tempe. You should establish an LLC in Tempe before starting your firm. You’re not the only one who is curious in how long it takes to form an LLC in Tempe, AZ. Tempe has a quick and easy LLC creation process.
To start a business in Tempe, AZ, the 5 most important things you need are, 1. A business plan, 2. A Business Name, 3. Seed capital, 4. Proper business licenses, 5. A marketing plan to promote your business.
The price of launching a company in Tempe, AZ can vary depending on the kind of enterprise. You must pay a charge if you wish to establish a firm as an LLC. A business license and a tax ID number are additional requirements.
No, LLCs are not free in Tempe, AZ. To form an LLC in Tempe, AZ, you must pay the LLC filing fee charged by the state. Also, there are some taxes one has to pay to run an LLC in Tempe, AZ.
You should relocate to Tempe, AZ, unless there is a very good reason not to. In essence, you need to consider if Tempe is a good fit for your company if you wish to relocate there. You shouldn’t relocate if your line of work is unfavorable to Tempe’s chances.
Tempe, AZ’s robust economy is the key driver behind firms relocating there. This is made feasible by the city’s service industry and established industries. Given that Tempe’s economy is expanding daily, more firms are eager to relocate there.
If you want to move to Tempe, AZ you can. It is not a bad idea. The city has a lot to offer to entrepreneurs and small business owners. You can use all the resources Tempe provides to start your own business.
Tempe, AZ is a popular city. Besides, the economy is growing fast. Hence, there are many companies are moving to this city. There are businesses like Food and Restaurant business, Manufacturing, Hotel business, and such are most popular ones.
You could start a business with $1000 in Tempe, AZ that offers a service to people who want to know what’s happening in the city. You could offer a service that provides a daily email with the top five events going on in the city today.
Which city is the best to live in has been a topic of discussion for a long time. The thriving economy and ethnically diversified population of Tempe are well recognized. Houston is renowned for having a lower cost of living. There are several things to take into account while determining which is less expensive.
Starting a business in Tempe is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, Arizona has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Tempe, AZ.