When you start a business, there are a lot of factors that go into determining the structure of your company. You should sit down with a lawyer to figure out which of these is most appropriate for your individual concerns. The right lawyer should be retained as soon as possible because there are many issues that need to be addressed at the founding of your company as well as once you begin to work with vendors, employees, and other parties in your business relationships.
In the state of Arizona, you have the option to determine how you will set up your business. Choosing whether to structure it as an LLC or a corporation is a common concern and this is an issue that should be handled directly by an experienced business lawyer. There are many complicated impacts for tax and legal purposes of how you choose to structure your company and selecting a right person to assist you with this is extremely important. The primary benefit of selecting a corporation is that it gives protection for officers from personal liability for any debts tied to the corporation.
However, corporate officers could be subject to double taxation since the corporation has to pay taxes and then any salary drawn by the corporate officers also is responsible for taxes. This is true unless the corporation is classified as an S Corp. A limited liability company still provides the same liability protection of a corporation while also using a partnership’s simplified tax structure. An LLC might initially seem more attractive but there are issues in control and management and certain situations in your individual circumstance that might make it a better choice to select a corporation.
A knowledgeable Arizona business attorney can assist you with these critical determinations at the outset of establishing your business. This also gives you the added benefit of having an existing relationship with an experienced Arizona business attorney so that you can move forward and have prompt answers to any questions associated with your company, contracts and other business transactions.