Sedona Business License: $70 City Licence and the $210 Short-Term Rental Permit
Sedona Business License: $70 City Licence and the $210 Short-Term Rental Permit
If you plan to run a business inside Sedona, you will likely deal with two separate city charges on top of your state paperwork: a Sedona business license, and, if you rent a home or unit to overnight guests, a short-term rental (STR) permit. They are different filings with different fees, and paying one does not satisfy the other. This guide covers what to gather, what to file, and what each item costs.
Disclaimer: This article is informational only. It is not legal or tax advice. Talk with an attorney or CPA before you make decisions about your entity structure, tax treatment, or short-term rental operations.
Start with the state: there is no general state business license
Arizona does not issue a general statewide business license. The state filing most businesses need is the Transaction Privilege Tax (TPT) license from the Arizona Department of Revenue (ADOR). It is a tax license, not a general business permit, and it costs $12 per location. Counties in Arizona issue no general business license either, so the city is where your local paperwork starts.
Before you apply for anything in Sedona, make sure your entity exists on the state record. The Arizona Corporation Commission files LLC and corporation documents. An LLC files Articles of Organization (Form L010) for a $50 filing fee. A corporation files Articles of Incorporation for a $60 filing fee, along with a Certificate of Disclosure. Trade names are a different filing. They are registered with the Arizona Secretary of State, and registration is optional.
Materials you need before you start
- Your legal entity name and the Arizona Corporation Commission filing number, if you formed an entity. Look it up on the Arizona Corporation Commission business search.
- Your federal Employer Identification Number (EIN), if your entity uses one.
- The physical address of each property you plan to rent, and the number of units at each address. The STR permit is charged per unit, so an exact count matters.
- Your ADOR TPT license number, once you have it.
- A payment method accepted by the city's online portal. Sedona accepts applications online only, so you will need reliable internet access and a printer or PDF tool for saving confirmations.
- A calendar entry for your renewal date and for each late-fee threshold listed below.
Step 1: Confirm your entity is in good standing
Check that your entity is active on the Corporation Commission search before you file with the city. Your filing requirements depend on the entity type:
- LLCs: Arizona LLCs do not file an annual report. The Corporation Commission states that only corporations must file one, so there is no recurring state filing fee for an LLC to stay in good standing.
- For-profit corporations: You must file an annual report, which costs $45. It is due each year in the corporation's anniversary month, on the date the Commission assigns. A corporation can request a written extension of up to six months, filed on or before the due date.
- LLCs and publication: An LLC must publish notice unless its statutory agent's county is Maricopa or Pima. The statutory agent's county is not the same as the county where your business operates, so check your filing with the Corporation Commission before you assume the requirement does or does not apply to you.
Step 2: Get your ADOR Transaction Privilege Tax license
Apply for the TPT license through the Arizona Department of Revenue at the ADOR TPT license page. The license costs $12 per location. Businesses with taxable activity need it, and Sedona's city tax depends on the state framework. Confirm with ADOR which classification your activity falls into before you start collecting tax from customers.
Keep your TPT license number on file. You will need it for your records, and you may be asked for it when you deal with the city's tax and licensing staff.
Step 3: Apply for the Sedona business license online
A new Sedona business license costs $70 per calendar year. The city accepts applications online only, so do not plan on mailing or walking in a paper form. Have your entity name, EIN, TPT license number, and business address ready before you start. Enter the information exactly as it appears on your state filings, since mismatched names are a common cause of delays.
Save the confirmation page and any receipt the portal generates. Keep a PDF copy in the same folder as your entity documents and TPT license.
Step 4: Renew your Sedona business license on time
The 2026 renewal fee is $35, and it is non-refundable. Late renewals cost $5 per month, starting February 1, 2026. The late charge adds up month after month, so set a reminder well before your renewal date. Renewals are also online only.
If you forget to renew, the amount grows each month rather than being a single late charge. Check the city's business license page for the exact renewal date assigned to your account.
Step 5: Decide whether you need a short-term rental permit
If you rent a home or unit to guests for short stays, Sedona requires a separate STR permit. It costs $210 per unit per year. A business license does not cover it, and the permit does not cover the business license.
Some owners assume the older Sedona ordinance still applies. It does not, in the form many people remember. In May 2018, the Arizona Attorney General found that Sedona's earlier short-term rental business license ordinance violated state law, and the city repealed it. The current STR permit is a separate, per-unit charge. Do not cite the repealed ordinance when you apply.
Step 6: Set up city TPT collection for rentals
Sedona levies its own city TPT on top of state and county rates. The city rate is 3.5 percent on retail sales. The city also lists hotels at 3.5 percent plus an additional 3.5 percent. The state combined rate is 5.6 percent on retail and most other taxable classifications, and county and city rates apply on top of it.
Which rate applies to a short-term rental depends on how the city and ADOR classify your activity. Confirm this with the City of Sedona tax office and with ADOR before you set your nightly rate or your booking platform settings. Do not assume the retail rate applies because your rental is not a hotel.
Fee summary
| Item | Agency | Cost | Timing |
|---|---|---|---|
| TPT license | Arizona Department of Revenue | $12 per location | Before taxable sales |
| Sedona business license, new application | City of Sedona | $70 per calendar year | At application, online only |
| Sedona business license renewal, 2026 | City of Sedona | $35, non-refundable | Annual renewal, online only |
| Late business license renewal | City of Sedona | $5 per month from 2/1/2026 | After the renewal date |
| Short-term rental permit | City of Sedona | $210 per unit per year | Annual |
| Short-term rental late fee, 2 to 90 days | City of Sedona | $50 | From 1/1/2026 |
| Short-term rental late fee, 91 days or more | City of Sedona | $100 | From 1/1/2026 |
Confirm every figure above on the City of Sedona's business license page before you pay. Fees and deadlines can change, and this summary reflects the figures available at the time of writing.
Common mistakes to avoid
- Treating the TPT license as the Sedona license. The state TPT license and the city business license are separate filings. You need both if your business is taxable inside city limits.
- Assuming the STR permit is included in the business license. It is a separate $210 per unit charge.
- Miscounting units. The permit fee is per unit, so a duplex is two units unless the city treats it otherwise. Confirm the count with the city before you pay.
- Trying to file on paper. Sedona accepts applications online only.
- Missing the renewal date. The late charge for the business license grows by $5 per month, and the STR late fee rises from $50 to $100 once you pass 90 days.
- Relying on the repealed 2018 ordinance. The Attorney General's finding and the city's repeal mean the old rules do not govern your filing.
- Skipping the entity check. If your Corporation Commission filing is inactive, the city application may be the least of your problems.
What to expect after you file
Once your application is submitted, you may receive a confirmation through the online portal. A complete application with matching names, addresses, and unit counts is less likely to need follow-up than an incomplete one. This guide does not state a processing time, so check the city's website for current timing and ask the city directly if you need a license before a specific date.
After you are licensed, keep your records in one folder: the entity filing, the TPT license, the Sedona business license confirmation, the STR permit, and your renewal reminders. If you collect tax from guests or customers, keep a monthly log of gross receipts and the tax you collected. Those records will matter if the city or ADOR asks questions later.
When to get professional help
Short-term rentals, multiple properties, and entities that hold rental real estate can raise questions about classification, tax rates, and liability that a checklist cannot answer. A business attorney can review your entity structure and your rental agreements. A CPA can help you understand how the city TPT, the state TPT, and your income tax reporting fit together. Both are worth the cost before you open for bookings, especially if you plan to rent more than one unit.