Tempe Business License: The New General Business Licence (Effective August 2025) and Regulatory Licences

If you run a business inside Tempe city limits, your license question has two layers. The state layer is simple: Arizona has no general state business license. The city layer is where things changed. Effective August 1, 2025, Tempe requires most businesses to hold its own General Business Licence, with a fee of $25 per year starting January 1, 2026. This guide covers who needs a Tempe business license, how to apply, how renewal works, and where Tempe's regulatory licences fit in.

This article is informational content, not legal or tax advice. Rules change, and every business is different. Confirm your obligations with Tempe Tax & License at 480-350-2955, and talk to a qualified attorney or CPA about anything complex.

What You Need Before You Start

Gather these items before you call Tempe or start an application. The city may ask for different documents, so treat this list as preparation, not an official checklist.

• Your legal business name and entity type (sole proprietorship, partnership, LLC, or corporation)
• Your Arizona Corporation Commission filing number, if you formed an LLC or corporation
• Your registered trade name, if you operate under a name other than your legal name
• Your federal Employer Identification Number (EIN), if you have one
• Your Tempe address, and whether it is a permanent commercial location or your home
• Your Transaction Privilege Tax (TPT) license number, if you already hold one
• A list of Tempe job sites, if you are a contractor
• A list of any Tempe regulatory licences you hold or plan to apply for
• A payment method for the $25 annual fee

How the State Layer Fits In

Sort out your state filings first. They are separate from Tempe's license, and Tempe does not replace any of them.

• Entity filing. The Arizona Corporation Commission files LLC and corporation documents through its site at azcc.gov/corporations. An LLC files Articles of Organization (Form L010) for a $50 filing fee. A for-profit corporation files Articles of Incorporation with a Certificate of Disclosure for $60. Counties do not issue a general business license.
• Annual reports. Arizona LLCs file no annual report and pay no annual report fee. For-profit corporations must file one each year for $45, due in the anniversary month.
• Trade names. The Arizona Secretary of State registers trade names, not the Corporation Commission. Registration is optional. Check the current fee at azsos.gov/business/tntm, because this guide does not state it.
• Transaction Privilege Tax. The Arizona Department of Revenue issues the TPT license at azdor.gov. It costs $12 per location and is required for retail sales and other taxable business classifications. A TPT license does not give you a Tempe license, but holding one does trigger Tempe's requirement.
• Income tax. Arizona's individual income tax is a flat 2.5 percent. If your LLC passes income through to its members, they pay that rate on their share.
• Contractors. The Registrar of Contractors licenses contractors. Its requirements and fees are outside this guide, so check them directly with that agency.

Step-by-Step: Getting Your Tempe General Business Licence

1. Confirm your entity and state filings are current. Search your business on the Arizona Business Center at arizonabusinesscenter.azcc.gov. Confirm the legal name, entity status, and any trade name are correct. An application built on the wrong legal name creates a mismatch you will have to fix later.
2. Decide whether you are covered or exempt. Use the lists in the next section. If you hold a TPT license, you are required to hold the Tempe license.
3. Call Tempe Tax & License at 480-350-2955. Confirm the application route, the current fee, the processing time, and whether your business type also needs a regulatory licence. Ask how the fee applied between the August 1, 2025 effective date and the January 1, 2026 fee start.
4. Assemble your application. Use the materials list above. Match every name and address exactly to your state filings and your TPT record.
5. Pay the $25 fee and submit. Keep the payment confirmation and a copy of everything you submitted.
6. Report changes within 10 days. When information on your license changes, such as a move to a new address, report it to Tempe within 10 days. Ask Tempe which changes it expects you to report.
7. Renew every year. The license is annual. Your first renewal is due before January 1, 2027. Set a calendar reminder well ahead of each renewal date.

Who Needs the License and Who Is Exempt

You need the General Business Licence if you are:

• A holder of a Transaction Privilege Tax license
• Operating with a permanent physical location in Tempe
• Renting commercial space in Tempe
• A professional service provider with a permanent Tempe location
• Running a home-based business in Tempe
• A contractor with Tempe job sites. One license covers you even if your business is based elsewhere.

You may be exempt if you are:

• A holder of a Tempe regulatory license (liquor, short-term rental, mobile merchant, or amusement machines)
• Providing caregiving that is not licensed by the state
• An independent contractor working for a parent company
• Giving private lessons from a non-commercial space
• Making casual sales of four or fewer per year
• Covered by a state-law exemption, such as food producers, out-of-state firms, or residential rentals

Read exemptions narrowly. The exact conditions matter, and the state-law exemptions in particular depend on details. Get a written answer from Tempe before you rely on one.

Tempe Regulatory Licences

Tempe also issues regulatory licences for specific activities: liquor, short-term rentals, mobile merchants, and amusement machines. These sit alongside the General Business Licence and do not replace it by default. Holding a Tempe regulatory license exempts you from the General Business Licence under the rules summarized here. Still, ask Tempe whether any other activity at the same business needs the General Business Licence, and check whether a regulatory license also involves a state agency or a separate fee.

Penalties for Missing the Deadline

Failing to get or renew the license adds a 50 percent penalty on the fees due. On the $25 fee, that penalty alone is $12.50, before any other charges Tempe may apply. The penalty is small in dollars, but a missed renewal also creates a compliance record you would need to explain later.

Common Mistakes to Avoid

• Assuming the state license covers Tempe. The TPT license and the Tempe license are separate, and Tempe requires its own.
• Assuming a home-based business is exempt. Home-based businesses are covered under the rules summarized here.
• Assuming an out-of-town contractor is exempt. A contractor with Tempe job sites needs one license even if the business is based elsewhere.
• Assuming your LLC has an annual report. Arizona LLCs file none. Corporations do.
• Mixing up the trade name and the entity name. The Secretary of State registers trade names, and the Corporation Commission handles entity documents.
• Missing the 10-day change window. A new address or other change you do not report on time can leave your license out of date.
• Forgetting the first renewal. Your first renewal is due before January 1, 2027. Put it on your calendar now.

What to Expect After You Apply

If your application is complete and you qualify, you should receive a license for the current year and a renewal date to track. This guide does not state a processing time for the Tempe license, so get that figure from Tempe Tax & License before you plan a launch date. Also confirm how Tempe delivers the license and whether it expects you to display it at your location.

Expect to renew every year. The annual fee is $25, and staying current keeps you clear of the 50 percent penalty and the paperwork that comes with a lapse.

Next Steps

Start with the call to Tempe Tax & License at 480-350-2955, then work through your state filings if you have not completed them. If you want help thinking through how your entity, TPT license, and Tempe license fit together, the Arizona Small Business Development Center Network at arizonasbdc.com can help you plan your setup. For anything involving liability, taxes, or contractor work, a qualified attorney or CPA should review your situation before you act.