Starting a small business can be exciting, but local and state licensing rules can be confusing, especially if you work from home or sell online. If your business is based in Cave Creek, Arizona, this guide explains exactly what licenses you may need, why they are required, and the steps to follow.
This post is written for new business owners and applies to online businesses, service providers, and artists selling from a home office or studio.
Do You Need a Business License in Cave Creek, AZ for an Online or Home-Based Business?
The Short Answer
If your business is based in Cave Creek, AZ:
- You generally need a Cave Creek Business License, even if your business is online only.
- Home-based businesses are still considered “doing business” in the town.
- You may or may not need an Arizona Transaction Privilege Tax (TPT) license, depending on what you sell.
- If you operate more than one business, you may need one license or multiple licenses depending on how they are structured.
Why an Online Business Still Needs a Local License
A common misconception is that an online business does not need local licensing because there is no storefront. In Cave Creek, this is not the case.
If:
- Your home office or primary place of business is located in Cave Creek, and
- You conduct business activities from that location,
then the Town of Cave Creek considers your business to be operating within town limits.
This applies to:
- Online stores
- Freelancers and consultants
- Web designers and developers
- Hosting or digital service providers
- Artists and makers selling online
As a result, a Cave Creek Business License is required.
Home-Based Businesses and Home Occupation Permits
When you run a business from your residence, it is classified as a home-based business or home occupation.
In addition to a business license, Cave Creek may require a Home Occupation Permit. This permit is related to zoning, not taxes. It is used to ensure that business activity does not disrupt residential neighborhoods.
Home occupation rules typically focus on:
- No customer foot traffic
- No exterior signage
- No noise, odors, or visible business activity
- Minimal deliveries
Many online and service-based businesses qualify easily.
Do You Need an Arizona TPT (Sales Tax) License?
Arizona’s Transaction Privilege Tax (TPT) is similar to a sales tax, but it is legally a tax on the business for the privilege of doing business in the state.
Whether you need a TPT license depends on what you sell, not how much you make.
Businesses That Usually Do Not Need a TPT License
You generally do not need a TPT license if you sell only non-taxable services, such as:
- Web design
- Web hosting
- Consulting
- Coaching
- Professional or creative services that do not include selling products
Arizona does not tax most professional services.
Businesses That Usually Do Need a TPT License
You generally do need a TPT license if you sell:
- Physical products
- Taxable digital goods
- Artwork or handmade items
- Merchandise
- Other tangible personal property
Income under $100,000 per year does not automatically exempt you. The deciding factor is the type of business activity.
What If You Have More Than One Business?
If you operate two businesses from the same home address in Cave Creek, how many licenses you need depends on how those businesses are structured.
You may need only one business license if:
- The same person or entity owns both businesses
- Both operate from the same address
- Both activities can be listed under a single license
You may need separate licenses if:
- The businesses use different names
- The activities are treated as separate lines of business
- The town requires separate licensing for each activity
The Town Clerk’s office makes the final determination, so it is best to ask before applying.
What If You Are an Artist Selling Unique Pieces?
If you are an artist selling original, one-of-a-kind artwork from a home-based business in Cave Creek, your requirements are slightly different from service-only businesses.
Cave Creek Business License
Artists selling from home, including online sales, are required to have a Cave Creek Business License. This applies even if:
- All sales are online
- You never meet customers in person
- You sell through platforms like Etsy or Shopify
If your art business is run from your home, you may also need a Home Occupation Permit.
Arizona TPT License for Artists
In Arizona, original artwork is considered tangible personal property. If you are regularly selling your artwork as a business, those sales are generally taxable.
This means most artists need:
- An Arizona TPT license under the retail classification
- To collect and remit TPT on sales to Arizona customers
The fact that the artwork is handmade, custom, or unique does not automatically make it tax-exempt.
Possible Exceptions for Artists
There are limited exceptions, such as:
- Very occasional or casual sales
- Certain commissioned works created to a buyer’s exact specifications
However, once you sell regularly, advertise, or rely on art sales for income, you are usually considered a taxable retail seller.
Step-by-Step Checklist for New Business Owners in Cave Creek
- Confirm your home address is within Cave Creek town limits.
- Apply for a Cave Creek Business License here
- Ask whether a Home Occupation Permit is required for your business type.
- Determine whether your business activity requires an Arizona TPT license.
- If required, register with the Arizona Department of Revenue Here. Also see my other blog post: How to Create an LLC in Arizona
- Collect and remit taxes as required.
- Renew licenses annually.
Common Mistakes to Avoid
- Assuming online businesses do not need local licenses
- Confusing a business license with a tax license
- Not listing all business activities on the application
- Waiting until after sales begin to register
Final Takeaway
If your business is based in Cave Creek, Arizona, even if it is online or home-based, you are still subject to local licensing rules.
Most businesses need:
- A Cave Creek Business License
- Possibly a Home Occupation Permit
- A TPT license if selling taxable products such as artwork or goods
Getting properly licensed early helps avoid penalties and allows you to focus on growing your business with confidence.
