The selection of an appropriate business organization impacts liability, taxes, owner’s rights and future ability to sell an ownership interest. An experienced business law attorney can assist you in understanding the different types of business organizations and in choosing the correct type for your company. Always consult with a legal professional when making important business choices so you can take advantage of legal protections that are available.
An Option is a Contract that gives a buyer the right to buy or sell an asset at a specific price under specific terms for a set period of time. Learn more about Option to Purchase in Arizona and Right To First Refusal in Arizona in this presentation.
An experienced attorney can provide advice on applying for Low-Income Housing Tax-Credits (LIHTCs) and on meeting ongoing requirements.
Learn more about Low-Income Housing Tax-Credits in Maricopa County and in Arizona in this presentation.
Owning a share in a business can be financially and personally rewarding. Unfortunately, there are also significant risks associated with making an investment in a business. Owners not only make a profit when a company is profitable and lose value in their investment when a company fails to make income, but owners can also become personally responsible if something goes wrong with the company. This means that if a business is sued, the owner of the company could find himself at risk of losing his house, his personal savings and other things he owns outside of the business.
Many people do not want to take this type of risk. Fortunately, there are a variety of different business structures that can shield owners of a professional enterprise from liability. Because there are major differences in liability protection for Corporations, Joint Ventures, Limited Liability Companies, Limited Liability Partnerships and Partnerships, those who are considering starting or investing in a business should speak with an experienced Scottsdale business law attorney for help choosing the best structure for their organization. Lotzar Law Firm, P.C. has helped many startups and has also assisted organizations in restructuring to a different organizational form that provides greater liability protection. Call today to schedule a consultation and learn more about how we can help you.
An owner could potentially become liable if a business that he has invested in has been sued. This means if creditors seek a Judgment against the business for non payment, the owner could have to pay. In addition, if a customer or an employee sues the company under Tort Law and the defendant organization is found liable, the owners could face the loss of their personal assets to satisfy the Judgment against the business.
Whether or not an owner faces personal liability depends upon how a business is organized. For example:
Choosing the right business form is essential in order to protect yourself from liability when owning or investing in a business. The Scottsdale Arizona business law attorneys can provide legal assistance in the process of starting a business, determining the right organizational form and completing all legal requirements for incorporating or forming an LLP, LLC or Partnership. Call today to schedule a consultation and learn more.
A Nonprofit Organization may qualify for Tax-Exempt Status if the goal of the organization is to serve the public good. Learn more about Charitable Purpose in Maricopa County and Charitable Purpose in Arizona in this presentation.
A Nonprofit Corporation is a corporate entity that has been formed in order to provide a public good or to do charitable work. Nonprofits may earn money and receive donations, but the organization does not exist for the purposes of earning a profit for its owners. Instead, the nonprofit has an organizational goal of providing help, assistance or enrichment to society or to people’s lives. Because nonprofits benefit the public rather than individual owners, these types of organizations are Tax-Exempt.
Forming a Nonprofit requires taking multiple different legal steps. The organization first must be incorporated and the organization must then apply to the Internal Revenue Service for Tax-Exempt Status. An experienced Scottsdale Arizona nonprofit lawyer at Lotzar Law Firm, P.C. can provide assistance to those wishing to start a nonprofit who are seeking Tax-Exempt Status for their enterprise. Call today to schedule a consultation and learn more.
The first step in forming a Nonprofit Corporation is to request a Tax ID Number, decide on a business name and file Articles of Incorporation with the Arizona Corporation Commission. The name of the organization must not be in use already within the state of Arizona. All requirements must be met in filing the Articles of Incorporation including providing information on the name of the nonprofit; the address; the officers; and the organization’s purpose.
After the Nonprofit Corporation has been created as an official legal entity, it is necessary to request Tax-Exempt Status from the Internal Revenue Service. There are different categories under which organizations become Tax-Exempt Nonprofit Corporations. For example, a Nonprofit Corporation may be classified as a 501(c)(3) Organization. This means that section 501(c)(3) of the IRS Code is the section of the law that entitles this particular business to avoid paying taxes. Form 1023 must be submitted to the IRS, along with information on why the Nonprofit Organization should be considered Tax-Exempt, in order to obtain approval.
The IRS will allow an organization to be classified as Tax-Exempt only if the purpose is to do something beneficial to the public good. For example, a Nonprofit Corporation may be Tax-Exempt if its purpose is:
Forming a nonprofit organization not only allows for favorable tax treatment for the organization, but also for donors as well. In most cases, donors who give money to a 501(c)(3) or other similar Tax-Exempt Organizations will be able to take a tax deduction for the amount of the donation.
The owners and directors of a nonprofit also benefit from liability protections when an organization is structured as a nonprofit corporation. This means those in charge of running the organization will not be at risk of personal liability for debts or Judgments against the Nonprofit Corporation.
Lotzar Law Firm, P.C. can assist in the formation of a Nonprofit Corporation so you can start taking advantage of the legal benefits of this organizational structure. Call today to schedule a consultation and learn more.
To learn more, please download our free nonprofit corporation in Arizona report here.
A Mechanic’s Lien is a claim on property made by a contractor who has performed work on the property. A contractor is given the right under Arizona law to file a Mechanic’s Lien for unpaid work. The contractor will need to record his interest in the real property in the county where the work was done.
Subcontractors must understand how Mechanic’s Liens work in order to protect themselves from nonpayment by general contractors. Both general contractors and buyers/owners also need to know the process and laws related to Mechanic’s Liens in order to protect their legal interests.
An experienced business law attorney can provide you with advice on the best ways to prepare for death, disability, divorce or discharge at the time when you start your company. Learn more about starting a business in Arizona in this presentation.
The formation of a business requires an understanding of your goals for future operations so you can determine the appropriate business structure to operate under.
Topics covered in this report include:
To protect your Trademark and receive the maximum benefit from its use, it is advisable to register the Trademark with the federal government.
Topics covered in this whitepaper include:
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