Corporation and limited liability company business attorneys can help you establish the right entity for you and your company. There are benefits and drawbacks to different types of business entities. This includes possible tax benefits, different filing requirements, regulatory compliance, transparency and how financial transactions are handled.
At West, Longenbaugh and Zickerman, P.L.L.C., we can help you choose the best entity to accomplish your business and financial goals.
Types Of Corporations
Limited Liability Company Or Professional LLC
A limited liability company is the most popular type of business formed in Arizona. An LLC provides business owners with the protection of limited liability, so they are generally not personally liable for business debts. This can give business owners peace of mind, knowing that their personal assets, bank accounts and home may be protected from creditors.
An LLC also has flexible tax benefits for business owners. LLCs may not have to file separate taxes. Business profits or losses can pass through the LLC to the owner. Owners may be able to include the business profits and losses on their personal income taxes, as a sole proprietorship.
LLCs may also have simpler regulatory requirements in Arizona compared with other corporations. They are also more flexible and can be structured according to how the owners want to run the company.
Some business owners may prefer a sole proprietorship or partnership to an LLC, depending on their business needs. A sole proprietorship may be simpler to start and to operate, although there are drawbacks to sole proprietorships. Other business owners who want to sell shares of their company may prefer to form a corporation instead of an LLC.
For-Profit (Business) Corporation And Professional Corporation
Corporations generally have more regulatory requirements and may be less flexible than an LLC. For certain businesses, however, there are benefits to forming a for-profit corporation. Corporations generally have similar limited liability benefits. Their owners are not generally held to be personally liable to creditors for the debts or liabilities of the company.
Depending on the company and the structure of the corporation, a corporation may have lower tax liabilities than an LLC. The tax filing requirements may depend on whether the company wants to be taxed as an S corporation or a C corporation.
One of the primary benefits of a corporation is the ability to issue shares of stock in the company. A corporation can issue and sell stock to investors, bringing in additional money for the company to invest and operate.
However, a corporation must abide by stricter regulatory requirements. This generally includes filing articles of incorporation, creating bylaws, holding annual shareholder and board of directors meetings, documenting the meetings, and filing annual reports.
The formation of a nonprofit corporation is similar to that of a for-profit corporation. However, the goals and purpose of the business and tax implications may be very different. Your nonprofit corporation may have to include a board of directors and seek federal, state and local tax exemption. If you are interested in starting an Arizona nonprofit, talk to our Arizona corporations and LLC attorneys to make sure forming a corporation is the right move.
Forming A Corporation
Some individuals with business, tax and corporate experience may decide to form a corporation or LLC on their own. Even if you do this on your own, however, it may be a good idea to have an experienced attorney review the filing documents to avoid problems down the line.
Most companies enlist the assistance of experienced corporate business attorneys to form an LLC or other corporation. They can make sure you are choosing the best type of corporation for your business and financial goals. They will also make sure that all necessary information is included so you can get your business up and running. If you have any questions about forming a corporation, contact your Arizona business law attorneys.
Operating And Maintaining A Corporation
Once you form your corporation or LLC, you may still be required to file certain documents, maintain records, hold annual meetings and properly file tax documents. Within the first year of starting a business or corporation, the business owners may run into questions they did not anticipate. As soon as a problem or issue arises, you should talk to your attorney to make sure your assets are protected and your business can continue to operate.
Many new corporations and LLCs experience problems with business partners, shareholders or other corporate officers. This may be because the company is not meeting profit forecasts or the individuals have different ideas about the future of the company. Your corporate attorney can help negotiate an acceptable solution between differing parties or provide for an option for the partners to separate while maintaining the health of the corporation.
Dissolving Or Terminating A Corporation
If you decide to dissolve a corporation, there may be specific requirements to do so. This generally involves filing articles of dissolution with the Arizona Corporation Commission. The corporation may have to deliver a tax clearance certificate to the state, to show that any taxes levied against the corporation have been satisfied. Before dissolving your corporation, talk to your attorney to see what options you may have.
We Can Help You
If you have questions, the lawyers at West, Longenbaugh and Zickerman P.L.L.C., are ready to help. Our offices are located in Tucson, Arizona. Call us at 520-518-3781 or contact us online.
Let's Begin Solving Your Legal Problem
At West, Longenbaugh and Zickerman P.L.L.C, we are proud to serve people in Tucson and beyond. To speak with an attorney, call us at 520-790-7337
West. Longenbaugh & Zickerman PLLC
310 S. Williams Boulevard,
Tucson, AZ 85711
Mon-Fri: 8:30am - 5pm