When starting or expanding your business organizations, choosing the appropriate business structure is essential. The decision on how to structure your company will affect all other aspects of doing business, from securing financing to filing income taxes. There are advantages and disadvantages to each of the common business structures, and there are specific startup and ongoing requirements for various business organizations. You need to understand all options available to your company and make the right choice.
At Lotzar Law Firm, P.C. our experienced business formations attorneys in Scottsdale, Arizona understand the ins and outs of forming a new business entity. We will work together with you to learn about your business goals and operational activities and we will empower you to make the right choices for your organization. Our attorneys can also take care of the actual steps necessary to form your new business entity and will work with you to meet initial and ongoing requirements of operating a business.
How a Business Startup Lawyer Can Help You With Business Entity Formation
There are three primary considerations when selecting the appropriate business entity: liability; tax treatment; and regulatory requirements. The choice of business entity could result in significant personal risk if you do not select the right business entity structure, and there could be thousands of dollars in differences in your tax obligations for different business entities.
Lotzar Law Firm, P.C. attorneys have helped hundreds of clients to select the best type of business organization so you can grow your enterprise into the company you dream of while minimizing the risk of loss or financial struggles. Some of the different types of business entities we can help you to create include:
- For-profit and nonprofit corporations: Many large and small businesses operate as corporations, including most of the largest companies in the world. All corporations are not created equal. In addition to important distinctions between nonprofit organizations and for-profit corporations, a new company will also need to determine whether to organize as a Subchapter S corporation or a Subchapter C corporation. There are fundamental differences between these options in terms of tax treatment as well as in terms of ownership limitations and requirements. For example, a Subchapter S corporation allows pass-through taxation while a Subchapter C corporation could be subject to double taxation but has far fewer ownership restrictions.
- Joint ventures or general partnerships: When two or more people start a business together, they should have a detailed agreement outlining the terms of their shared venture. Joint ventures and general partnerships provide opportunity for entrepreneurs to build a business together but can create significant liability risks. Partners and parties to joint ventures must also have a clear delineation of shared rights and responsibilities to ensure effective operation. Our attorneys can help with steps to minimize potential risks and can facilitate the creation of effective operating agreements.
- Limited Liability Companies (LLCs): Lotzar Law Firm, P.C. can represent clients in the formation of both member-managed and manager-managed limited liability companies. LLCs provide the advantage of pass-through taxation and can provide liability protection, but there are myriad challenges in effectively designing and forming an LLC. The Lotzar Law Firm, P.C. can help your company to maximize the flexibility allowed for limited liability companies to create a business organization that protects your assets and reflects your ideals.
Our business entity formations attorneys in Arizona will explain all of the different options to you and assist in getting your business started on the right foot.
Talk to Our Business Entity Formations Attorneys in Arizona Today!
Beginning operations as the right business structure is the first step to making your company a success. Whether you are starting a new business or changing the structure of an existing organization, Lotzar Law Firm, P.C. is here to help. Call us today at 480-905-0300 x103 or get in touch using our online contact form to speak with a member of our legal team and take the first step towards the future of your company.