Starting an Arizona Business
Many people dream of opening their own business, but the legal issues to be considered can be intimidating. If you are thinking of starting a small business, team with attorneys who have business experience and understand the issues facing a new business. To ensure the success of your new business venture, you must start off on the right foot by choosing the appropriate legal entity and build a bulwark of supporting contracts and other documents to protect your business inside and out.
A sole proprietorship is the simplest means by which to conduct business and requires the least amount of effort to form and operate. A sole proprietorship does not protect the owner from the debts and liabilities of the business.
A partnership consists of two or more persons or other entities coming together for a business purpose. The main foundation for the formation of the partnership is to share in the income and expenses associated with the partnership.
A corporation is the most basic form of business entity. A corporation is a separate legal entity from the owners (stockholders) of the corporation and provides insulation to the owners from the debts and liabilities of the corporation.
Limited Liability Companies
A limited liability company is similar to the corporation, but offers the business protection of a corporation and the tax advantages of a partnership. It should be considered when management and ownership require flexibility to operate the business. A limited liability company is not required to make a public disclosure of finances as may
be required of a corporation.