Form Your Arizona LLC.
What is an LLC?
A limited liability company or “LLC” has become the most popular type of business entity in the past few years, beating out the long standing reign that a corporation once held. An Arizona LLC combines the limited liability of a corporation and the tax flexibility of a partnership. An LLC may be taxed as a sole proprietor (disregarded entity) if a single member entity, a partnership or as a corporation. If the entity is taxed as a partnership, each member’s profits and losses flow through to the members’ individual tax returns, therefore a separate tax return is not necessary for an LLC taxed as a disregarded entity or a partnership.
An LLC can provide asset protection and limit a member’s liability to the assets of the LLC, rather than the assets of the individual members of the LLC. In other words, if you are doing business as a sole proprietor and you get sued by a creditor, your home, car, bank accounts and stocks would be exposed to the liability owed to the creditor.
A citizen from another country can be a member of an LLC with little inconvenience, whereas, a shareholder of a corporation must be a resident or citizen of the United States. Additionally, an LLC has fewer corporate formalities since it is generally not required by law to do annual minutes or document major changes in the corporation.
A corporation has directors and officers of the company who must be individuals and may not be a business entity or a trust. An LLC’s manager may be a business entity or trust. This can be useful in some states when trying to create anonymity and/or asset protection.
There are some occasions when an LLC may not protect you from personal liability. This can be when negligence is involved, co-mingling of personal and company funds, or when you have personally guaranteed a loan.
Finally, as an LLC, your business will be regarded as having more credibility than that of a sole proprietorship. A formal business entity will demonstrate your commitment to the business and to those with whom you do business.
Limited liability company packages starting at $499 for a single member company, plus any filing or publishing fees. Includes a web or phone conference meeting.
*Personal meetings available for an additional charge.
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