Corporations and LLCs
Corporations and LLCs are two common business structures that offer liability protection to owners. Corporations are more formal, with shareholders and directors, and often face double taxation. LLCs, on the other hand, provide flexibility, combining the liability protection of a corporation with the tax benefits of a partnership or sole proprietorship.
Corporations and LLCs Formation by Fishbein Law Group
Corporations and LLCs are famous business structures primarily because they limit the owners’ liability to the amount they’ve invested. Both entities offer similar benefits regarding asset protection, tax savings, and organizational structure. However, LLCs have an edge in Arizona as they don’t require annual report filings with the Arizona Corporation Commission or yearly fees, making them a more attractive option for many business owners.
Both corporations and LLCs can offer S-Corp tax savings, protecting individual owners and their assets. They also provide a straightforward way to transfer ownership interests. Legally, these entities are distinct from their owners and managers, existing only through the authority granted by the state. Adhering to the operational rules of a corporation or LLC is crucial to maintaining these benefits, especially under Arizona’s New Limited Liability Act, effective for all new LLCs from 2020 onward.
Understanding asset protection and tax planning is vital when forming these entities to avoid unnecessary liability or tax burdens. Before proceeding, it’s essential to discuss your options for asset protection and tax savings with us.
Discover Our Other
Legal Services
Trusts & Wills
FLG offers legally documented Family Trusts and Wills.
Probate can be challenging. FLG offers Probate Litigation Services.
Business Formations
Ensure that your LLC, S-Corp, or Corporation is correctly set up.
Ready to get started with protecting your family or business assets?
Fishbein Law Group and Estate Planning Attorney Marc Fishbein offer Living Trusts, Business Planning, Litigation Services, Family Wills, Medical Powers of Attorney, Tucson Trademark Attorney services, and Probate Representation for the greater Tucson, Phoenix, and San Diego areas, including Mesa, Scottsdale, Tempe, Glendale Oro Valley, Sierra Vista, Marana, Green Valley, Chula Vista, La Mesa, Del Mar, Irvine, Long Beach, and Anaheim.