If you are starting a home-based business, you will need to be aware of any restrictions on the operation of your business, and any licenses or permits that will be required—whether you are baking pies, washing cars, babysitting children, grooming dogs, or providing counseling services. Some of the common sources and types of these restrictions, licenses, and permits are: (1) local zoning laws—including for signs for your business; (2) restrictions from your HOA (homeowners’ association), property deed, or residential lease agreement; (3) tax permit (sales and use tax) or resale/reseller’s certificate; (4) occupational license; (5) city or county business license; and (6) health and safety permit.

In Arizona, starting a home-based business requires compliance with various regulations. Local zoning laws may restrict the type of business activities you can conduct in a residential area, including the placement and size of signs. Homeowners' associations (HOAs), property deeds, or residential lease agreements may also impose additional restrictions. A tax permit, such as a sales and use tax permit, is necessary if you are selling goods or services subject to sales tax. Depending on the nature of your business, you may need a resale or reseller's certificate to purchase goods for resale without paying sales tax. An occupational license may be required for certain professions, which is regulated by the state or local authorities. Additionally, a city or county business license might be needed to legally operate your business within a particular jurisdiction. Lastly, if your business involves food preparation, childcare, or other activities that could affect health and safety, you may need to obtain relevant health and safety permits. It's important to check with local city or county offices, as well as the Arizona Department of Revenue and other relevant state agencies, to ensure you have all the necessary licenses and permits for your home-based business.