Starting a Business in Arizona

Starting a Business in Arizona

1)    Form of business:  sole proprietorship, general partnership, limited partnership, corporation, limited liability company

FORMS OF DOING BUSINESS

  1. a.    Sole Proprietorship  — one person or a husband & wife operate and all profits and losses flow to their personal tax returns.  Registration of the business name should be filed with the Arizona Secretary of State.
  2. b.    Corporation – one or more persons form a corporation under the laws of the State of Arizona, with a filing with the Arizona Corporation Commission and publication for 3 consecutive weeks in a newspaper of general circulation in the community of the business operations.  Income tax depends on whether one is a Subchapter C corporation or a Subchapter S corporation under the laws of the Internal Revenue Service.  Profits in a Subchapter C corporation are taxed at the corporate level; profits in a Subchapter S corporation are taxed at the personal income tax return level.
  3. c.    Limited Liability Company – one or more persons form a limited liability company under the laws of the State of Arizona, with a filing with the Arizona Corporation Commission and publication for 3 consecutive weeks in a newspaper of general circulation in the community of the business operations.  Profits and losses are reported on the members personal tax returns.
  4. d.    General Partnership – two or more persons form a partnership, which should be in writing.  Registration of the business name should be filed with the Arizona Secretary of State.
  5. e.    Limited Partnership – one person as a general partner with unlimited liability and one or more persons as limited partners with only liability for the amount invested.  The sale of limited partners’ interests is a security under the laws of the State of Arizona and the Securities and Exchange Commission.  Violations can lead to cease and desist orders and/or criminal charges.  Registration of the business name should be filed with the Arizona Secretary of State.  Registration may be required, depending on many factors, with the Arizona Corporation Commission – Securities Division and/or the Securities and Exchange Commission.  Profits and losses are reportable on the individual partners’ income tax returns. 

 

2)    Local, State and Federal Tax issues related to the form of business

3)    Risks and liability issues related to the form of business

4)    Profits and profit sharing related to the form of business

5)    Local and city requirements based on the form of business

6)    Reporting requirements based on the form of business

7)    Insurance issues related to the form of business

 

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