On behalf of Kadish & Associates Law Group posted in Business Formation & Transactions on Wednesday, June 27, 2018.
One of the biggest considerations that you have when you are starting a business is deciding what structure you will use for it. There are many different options that you have. For many people who are starting a small business, a limited liability company (LLC) is one of these.
Typically, an LLC is the best option if one or more of the owners have personal assets that they want to protect from liability situations that are associated with the company. This is often the case if there is a risk associated with the business, such as the possibility of getting considerable debts or being sued.
An LLC has many different benefits for business owners. One important consideration here is that the company isn’t treated as a separate tax entity. Instead, the profits and losses pass through the owner of the company, so the owners are responsible for paying any taxes for the business.
In order to establish your business as an LLC, you need to determine that your business name is available and valid. You will file your paperwork and will set up the operating agreement. In Arizona, the operating agreement isn’t required, but it is still a good idea to set one up so that there are clear guidelines for who is responsible for what aspects of the company.
Before you decide that this is the right business structure for your company, find out how the ins and outs will impact it. You don’t need any surprises to pop up later, especially if those are unpleasant. Taking the time to review everything now can help to prevent this.