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Can I offer a freemium version of my product or service in Arizona? What are the requirements?

Offering a Freemium Version of a Product or Service in Arizona

In Arizona, there are no specific laws or regulations that prohibit offering a freemium version of a product or service. However, businesses must comply with general business laws and regulations in the state.

If the freemium version of the product or service involves the sale of motor vehicles, the business must comply with the licensing requirements under Arizona Revised Statutes (ARS) Title 28, Chapter 10. This includes obtaining a license to engage in the business, operating from an established place of business, and complying with other requirements applicable to motor vehicle dealers and brokers [1.4][1.5].

If the freemium version of the product or service involves small business adjusted gross income, deductions other than those already reflected in the net amounts reported on the federal schedules prescribed in ARS 43-1701 may not be taken against Arizona small business adjusted gross income in computing Arizona small business taxable income [2.1].

If the freemium version of the product or service involves the sale of house trailers, the business must comply with the licensing requirements under ARS Title 28, Chapter 10. However, there is a limited exemption from the new or used house trailer dealer licensing requirements if the person claiming the exemption furnishes satisfactory proof to the director of licensure as a dealer under title 41, chapter 37, article 4 [1.1].

If the freemium version of the product or service involves the sale of donated used motor vehicles, a nonprofit organization that has qualified for an exemption from taxation of income under section 501 of the internal revenue code may sell a donated used motor vehicle without obtaining a license under ARS Title 28, Chapter 10, subject to certain conditions [1.2].

In summary, while there are no specific laws or regulations that prohibit offering a freemium version of a product or service in Arizona, businesses must comply with general business laws and regulations in the state. If the freemium version of the product or service involves the sale of motor vehicles, house trailers, or donated used motor vehicles, the business must comply with the licensing requirements under ARS Title 28, Chapter 10.

Source(s):
Jurisdiction

Arizona