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Arizona Corporation

What is an Arizona Corporation?

In Arizona, a corporation is a limited liability entity incorporated pursuant to Title 10 of Arizona's Revised Statutes, A.R.S.  § 10-120, et seq. A corporation is possibly the quintessential type of limited liability entity, and although many businesses are organizing limited liability companies ("LLC") as opposed to incorporating corporations, the corporate form still has its uses.

Is the Arizona corporation name you want available?

Please ensure that the corporation's name contain the words "Association", "Bank", "Company", "Corporation", "Limited" or "Incorporated" or an abbreviation of one of these words.

Why Incorporate an Arizona Corporation?

An Arizona Corporation is a an accepted manner of structuring and operating businesses because of: 1) limited liability and 2) tax flexibility.

1) Limited Liability

Often, the single biggest advantage of incorporating an Arizona corporation to structure a business is the limited liability that it can provide.

Unlike partnerships and sole proprietorships, a corporation can effectively limit its owners' liability to creditors, provided the owners, called members, have not personally guaranteed the debts of the corporation.

2) Tax Flexibility

In years past, the most common corporate form was a "C" corporation. The distributions made by a "C" corporation to its shareholders are taxed twice, once at the corporate level and once at the shareholder level. This system of two-level taxation is often referred to as corporate taxation. In contrast, however, there is another corporate form, called the "S" corporation, that is only taxed at one level for distributions made to shareholders. This single-level taxation is often called pass-through taxation.

Why Use a Lawyer?

If an Arizona corporation can be incorporated easily, why use a lawyer? In short, the default provisions provided for Arizona Corporations by law are a bare minimum. Because the circumstances and operations of most businesses are unique, a one-size-fits all policy is often insufficient to allow businesses to run effectively and efficiently while providing protection to the businesses' owners. Customized and well-drafted shareholder agreements can account for each business' unique circumstances and provide effective protections to business owners.

This brief overview of some important considerations associated with Arizona corporations is by no means comprehensive. Always seek the advice of a competent professional when making important legal decisions.

Arizona Corporation AttorneyDouglas K Cook is an Arizona corporation attorney with over 40 years of experience as a practicing attorney. Although Douglas K Cook's office is located in Mesa, Arizona, he represents clients throughout the Phoenix, Arizona Metropolitan area including the following east valley cities: Scottsdale, Paradise Valley, Tempe, Chandler, & Gilbert.

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