Registering and collecting sales tax for a new business in Arizona involves several steps to ensure compliance with the state’s Transaction Privilege Tax (TPT) system:

1. Obtain an EIN: Secure a Federal Employer Identification Number (EIN) from the IRS, especially if your business has employees or operates as a corporation or partnership.

2. Register for a TPT License: Complete the Joint Tax Application (JT-1) through the Arizona Department of Revenue (ADOR) website. Provide essential business information, including business name, address, ownership details, and EIN.

3. Gather Necessary Documentation: Prepare detailed information about your business activities, previous licenses (if applicable), and any additional local licensing requirements.

4. Submit the Application: Submit the JT-1 form online or by mail, along with the $12 annual registration fee per location and any local fees.

5. Receive Your TPT License: Upon approval, you will receive a TPT license, allowing you to legally collect and remit sales tax in Arizona.

6. Set Up Tax Collection Systems: Implement accurate tax calculation tools that apply the appropriate combined state and local rates based on the buyer’s location.

7. Maintain Records: Keep detailed records of all sales, taxable and exempt, including invoices and receipts, to support tax filings and compliance.

8. File and Remit Taxes: Regularly file TPT returns (monthly, quarterly, or annually) through ADOR’s online portal and remit the collected taxes by the due dates.

9. Stay Informed: Monitor any changes in tax rates or regulations to ensure ongoing compliance and adjust your systems accordingly.

By following these steps, new businesses can effectively register, collect, and remit sales tax in Arizona, ensuring lawful operations and avoiding penalties.