5 Common Mistakes Arizona Small Businesses Make

After helping hundreds of Arizona small businesses get off the ground, the same handful of mistakes keep coming up. Here are the five we see most often.

1. Skipping the Arizona publication requirement

Failing to publish your LLC or Corporation in an ACC-approved newspaper can put your entity out of good standing — even though many founders never hear about it until it's too late.

2. Acting as your own Statutory Agent at a home address

Your home address goes on the public record, and you have to be physically present during business hours to accept legal mail. Most founders quickly regret it.

3. Mixing personal and business finances

If you pay personal expenses out of your business account, you risk losing the liability protection your LLC or Corporation provides — a doctrine called 'piercing the corporate veil.'

4. Forgetting the annual TPT and federal filings

Arizona's Transaction Privilege Tax (TPT) is not optional for most businesses selling goods or taxable services. Combine that with federal income tax deadlines and it adds up fast.

5. No operating agreement or bylaws

Even if you're a single-member LLC, an operating agreement protects you in disputes and is often required by banks. Don't skip it.