Before opening a new business here in Arizona, there will be several decisions that need to be made. One of the first, and possibly most critical decisions, is what type of entity to form. How closely held businesses are structured affects numerous aspects of the company.
There are pros and cons to each type of entity, and understanding them will help you decide how to structure your company. Each type of entity will impact your tax structure, your reporting requirements and other aspects of your business. Whether you choose to form an S Corporation, partnership or limited liability company, an informed decision will help shape the future of your business.
Once that decision is made, there will be business regulations that will need to be adhered to, depending on the type of company you are starting. Licensing requirements, insurance coverage and other issues require attention before the business can open. Knowing which regulations you need to follow and what types of insurance you will need are also questions that your attorney should be able to answer. Something as simple as forgetting to obtain a federal and/or state employer identification number could cause unnecessary issues for you.
Therefore, it would be a good idea to consult with an attorney before opening any business. Arizona closely held businesses can be successful, but only if all of the legal issues are appropriately resolved first. Otherwise, any chance of success for the business could be put in jeopardy. The work done up front could make all the difference in the future.