Mesa, AZ Business Attorney Assists with Your Choice of Entity
Practical advice on business formation for all types of companies
When beginning a business, selecting the appropriate type of business entity for your new venture is an important step with tax and legal liability implications. Many different options are available in Arizona, including corporations, limited liability companies, partnerships and limited liability partnerships. A qualified and experienced business attorney in Mesa can guide you to the right choice given your particular needs. The Law Firm of Joseph M. Udall, PLC has more than 20 years of experience helping businesses throughout Arizona get started on a firm foundation.
Arizona business entities have tax and liability implications
Our firm recommends choosing the specific business entity that best suits your commercial purposes. Your business formation options include:
- Sole proprietorship
- General partnership
- Limited liability partnership
- Limited liability company
Most startups must decide between some form of incorporation or partnership. With the corporate form, officers and directors are generally shielded from personal liability for wrongful acts of the corporation. However, depending on the circumstances and type of corporation formed, corporate profits may be subject to double taxation, first as corporate income, and then again as income to the final recipient.
The S corporation is an exception to the double taxation rule. With an S-corp, shareholders report the flow-through of income and losses on their individual tax returns. With a partnership, owners are taxed at their individual rate, but do not receive much in the way of asset protection; they may be held personally liable for debts of the partnership. In most instances, partnerships are easier to establish than corporations and can be operated with greater flexibility by the owners.
A popular business form in Arizona today is the limited liability company (LLC). The advantages of an LLC are that it is taxed like a partnership, yet the owners are shielded from personal liability as they would be with a corporation, and unlike an S corporation, which limits the number and type of shareholders permitted, there is no limit on the number of members in an LLC. Other business forms that may appeal to the small business owner include subchapter S corporations and limited liability partnerships. Before deciding on an entity for your enterprise, it is important to consult with a qualified business lawyer.
Get reliable, practical advice about selecting an entity for your Arizona business
If you’re forming a new company in Arizona, the Law Firm of Joseph M. Udall, PLC is available to help. Call 480-500-1866 or contact our Mesa office online. We provide free, first-time telephone consultations and can schedule Saturday and evening appointments for your convenience. We speak Spanish fluently.