For nearly the entirety of America’s existence, enterprising individuals have been drawn westward. Be it the weather, or the opportunity for business growth, many still flock to the American Southwest in search of a better livelihood. If you happen to be a business owner or aspiring entrepreneur, there are not many better states to be in than Arizona. Known affectionately as the Grand Canyon State, Arizona’s arid climate, expansive desert, and business-friendly laws make it an ideal location for you to set up shop. Of course, in mapping out a business plan, your location is only one aspect that will warrant considered thought. You will also have to have a clear idea of the service of products you will provide, as well as a solid handle on your market. From there, you will also want to take a measured approach to hiring a team. You will want to bring on individuals who are passionate about your industry and share your vision. You may also want to put some thought into how you will choose to legally structure your business. If you have plans to incorporate, you will also need to learn a bit about Arizona corporation forms, as well as how you can complete them online.
There are a number of different ways in which you can legally structure an Arizona business. In your time working in the professional world, you have probably noticed that many businesses tend to have the three letters “LLC” in their names. Limited liability companies (LLCs) are very popular among business owners because they offer considerable tax and liability benefits, while also being fairly easy to set up and maintain. Partnerships are also not uncommon in the business world. These can range from the fairly informal general partnership (GP), which can be made official with a handshake or verbal agreement, to the more nuanced limited liability limited partnership (LLLP), which adds some additional legal layers. Corporations are also fairly ubiquitous, and while the term may evoke thoughts of large, multinational operations like Apple or Amazon, the truth is that small- to medium-sized businesses can also benefit from filing Arizona corporation forms. Read on to learn more about whether or not submitting articles of incorporation is right for your business.
Why You Should Consider Arizona Corporation Forms
Before you can begin assembling the documentation necessary to incorporate your business, you may want to learn a bit about just what a corporation is. On a very basic, fundamental level, establishing a corporation separates your business as its own legal entity. A corporation can enjoy many of the same rights and privileges as an individual, as it can own property, borrow and lend money, pay taxes, and hire and terminate employees. When a business owner, or owners, establish a corporation, a layer of legal protection known as “limited liability” is created. This means that in the event your business goes bankrupt or faces expensive lawsuits, you and the other incorporators will be able to shield your personal assets from any potential legal judgments. In plain terms, you will not need to worry about losing your retirement accounts or your home in the event that your business goes bust. As you can likely deduce, this is a considerable benefit for entrepreneurs.
In a corporation, you are also allowed to issue stock. This means that you can sell fractional shares of ownership of your business to outside investors. By doing this, you can generate valuable capital for your business that can be used to expand to a new location, hire more employees, or bump up your marketing budget. In return, your investors receive the opportunity to share in the success of your business. This is a notable contrast from, say, a limited liability company, which can face some challenges in raising outside investment, as it is rather complicated to bring on additional owners.
Certain corporate structures can also enjoy “pass-through” status with the Internal Revenue Service (IRS). Under this designation, profits, losses, deductions, and credits can pass from your business to its owners. To put it another way, you can avoid paying taxes “twice”–once for your business, and then again on your income. This tax structure can make forming a corporation particularly enticing.
How to File Your Articles of Incorporation Online
To form your Arizona corporation, there is a process to complete. First, you will want to choose a corporate name that is unique from other businesses already incorporated with the state. Next, you will want to appoint a registered agent. The role of this person is to process all legal correspondence on behalf of your business. From there, you can begin drafting your articles of incorporation. This document should include some basic information about your business, and its incorporators, and note how many shares you plan to issue. By working with us at Corporation Center, you can file your Arizona corporation forms online with just a few clicks. To learn more, visit our Frequently Asked Questions page, or contact us by phone or email today.