Nicknamed The Grand Canyon State and infamous for its deserts and national parks, our state of the week in our 50 States of Incorporation series is Arizona. The 48th state to be admitted into the Union with Phoenix as the state capital, Arizona is also the 15th most populous of the 50 states. Companies including US Airways, PetSmart, and Cold Stone Creamery call Arizona home for their headquarters, but as revealed on CNNMoney Arizona also ranks as the most entrepreneurial state in the country, with tech, software, retail and tourism start-ups sprouting up all over the state.
With so many companies staking ground there, what’s the allure of starting a business in Arizona? While forming an incorporation isn’t without its requirements, with the most distinctive one being that all Arizona LLC’s must have a registered agent service, some of the benefits of creating an LLC in Arizona include the following:
1) Limited Liability Protection. In which the LLC, like a corporation, is a separate entity with members that aren’t held personally liable for debts unless they have signed a personal guarantee.
2) Flexible Profit Distribution. As opposed to partnerships that split the distribution of profits 50-50, LLCs have the flexibility to select varying forms of distribution of profits.
3) No Minutes. Corporations are required to keep formal minutes, have meetings, and record resolutions. An LLC business structure requires no corporate minutes or resolutions and is easier to operate.
4) Flow Through Taxation. With Arizona already offering up low business and property taxes statewide, flow through taxation ensures that all your business losses, profits, and expenses flow through the company to the individual members. As such, you’ll be able to avoid the double taxation of paying corporate tax and individual tax.
5) Two Week Rush Filings. File to incorporate or form an LLC at a rush filing and your filing will be completed within two weeks – at a state level, the filings are generally ready within 7 weeks.
Have more questions about forming an LLC in Arizona or are ready to start the process? Give call us at 1(877) 692-6772 or leave a comment below!