Free Report: What Does It Mean to Respect Corporate Formalities in Arizona?

Many business owners form a Corporation in order to ensure that they are able to protect their financial interests. Incorporating creates a separate legal identity for your business so you do not become personally responsible for judgments against your corporation or for debts that your corporation incurs. Incorporating can also have tax benefits, as it may be possible to take some of your compensation in distributions rather than as salary. This means you do not have to pay Social Security or Medicare taxes on that income.

When you incorporate your business, it is important to realize that you must actually treat the company as a separate legal entity in order to continue to enjoy the benefits and protections of incorporation. The steps involved in treating your corporation as a corporation are referred to as “corporate formalities.”

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Charles Lotzar

With more than 25 years of legal experience, Chuck Lotzar knows how to solve problems and make deals happen. He earned his Bachelor of Arts in Business from Michigan State University in 1982, and his Juris Doctorate from the University of Detroit School of Law in 1985. Mr. Lotzar has extensive experience dealing with public contracts and issues related to public officials and has been involved in bond financings with an aggregate value in excess of $5 billion.

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