Doing Business In ... Phoenix, Arizona

Quick Stats

City Population:1,512,986
Metro Area Population: 4,039,182
Job Growth: 4.8%
Median Home Price: $268,228
Website: http://www.phoenix.gov/

Phoenix is the state capital, 5th largest city in the country. The city is consistently ranked among the best places to start and grow a business by popular business publications. With its steady population growth and available assistance for entrepreneurs, Phoenix is a great location for starting or relocating a small business.

The city offers a growing and skilled workforce, a competitive business environment, easy access to major markets and more. The city's light rail system, which opens in the fall of 2008, will offer a fast and convenient transportation link from the airport to downtown Phoenix, with stops at the convention center and several downtown businesses.

Business Start-Up Assistance

Spending some time researching your idea, writing a business plan, and scouting a location will significantly increase your chances for success. There are a number of free and low-cost services that can help you get your business off the ground:

• Arizona Small Business Development Center
  Provides free start-up advice, training and counseling services to entrepreneurs and small businesses throughout the state. Supported by the U.S. Small Business Administration (SBA).
• SCORE Phoenix
  Provides free and confidential business advice and counseling tailored to meet the needs of your small business and your personal objectives.
• Arizona Minority Business Development Center
  Provides free business consulting services and financial management advice to minority-owned businesses in the state. Supported by the U.S. Department of Commerce.
• Arizona's U.S. Export Assistance Centers
  Provides free, expert help for small businesses in Phoenix interested in expanding into international markets.

Visit Phoenix.gov's Resources for Businesses to find comprehensive information about starting and growing a business in Phoenix.

Financing Your Business

The following organizations provide help getting loans and other types of financial assistance for businesses in Phoenix.

• EXPAND Program
  The Expansion Assistance And Development (EXPAND) program helps Phoenix businesses in obtaining loans from eligible local financial institutions.
• Phoenix New Markets Program
  Offers commercial real estate and small business loans to Qualified Active Low-Income Community Businesses that are in or that relocate to low-income areas of Phoenix.
• Self Employment Loan Fund, Inc.
  Encourages self-sufficiency of low-income individuals, especially women and minorities, by promoting the growth of micro-enterprise through training, technical assistance, and access to credit.
• Arizona Job Training Program
  The Arizona Job Training Program can cover the costs of training your new employees through grants. Eligibility for funding is determined by the number of new hires, wage rates, benefits, and other basic essentials related to the project ranging from $2,000 to $5,000 per job. The Arizona Job Training Program also can help your business to train existing employees in Arizona through the incumbent worker portion of this job training program. Award amounts remain within the same range; however, only up to 50% of job training costs are reimbursed, versus 75% for new workers.

For general information on small business loans and financial assistance visit the Financing Your Business page.

Obtaining Licenses and Permits

To legally operate a business in the city of Phoenix, you'll need to obtain all necessary business licenses, operating permits and registrations.

• City of Phoenix Business Licenses
  Check to see if your business requires a special business license from the city of Phoenix.
• Sales (Privilege) Tax Registration
  A license is required for businesses located in the city of Phoenix.
• Building Permit
  Whether you're planning to build a new building or just make additions to a current structure, you may need a building permit.
• Sign Permit
  If you plan on putting up a sign outside your business, you may be required to obtain a permit from the city.
• Variance and Use Permits
  Learn about zoning permits required if you plan on a expanding your businesses or building a new structure.

In addition to city permits, you will also need to register your business with the federal government and State of Arizona. Visit the Arizona General Licensing page to learn about obtaining necessary federal and state licenses, permits and registrations.

Tax Credits for Small Businesses

Small business owners in Phoenix can take advantage of a few of tax credits.

• City of Phoenix Enterprise Zone (COPEZ)
  The city of Phoenix Enterprise Zone makes it more profitable to do business in designated areas of the city. Any company located in an Enterprise Zone can claim up to $3,000 in tax credits by creating net new quality jobs within the zone. Small manufacturing firms additionally may qualify for significant property tax reductions over five years.
• New Markets Tax Credit
  Offers loans and equity investments to qualifying commercial, retail, and industrial projects and small businesses in under-served areas of Phoenix with the intent of improving the economic conditions of those areas.

Additional Resources

The following resources from the Arizona Department of Commerce are essential for anyone starting and running a business in Arizona.

• Arizona Entrepreneur's Edge
  A resource guide to starting, operating and growing a business in Arizona.
• Step-by-Step Checklist to Start, Operate and Grow a Business in Arizona
  This online resource will guide you through what you need to know to start, operate and grow your business in Arizona.