If you and perhaps some additional Arizona individuals comprise a group of smart entrepreneurs focused upon forming a dynamic new commercial enterprise, congratulations.
A prospective business launch in the Phoenix metro area or elsewhere within the state is an exciting moment for any new company.
And, obviously, the considerations surrounding key details are critically important. How a business is legally defined will have both immediate and long-term repercussions that centrally link to profit, liability, taxes and other material concerns.
We note in an article on our website at the established Tempe business law firm of Cook & Price, PLC, one key distinction that faces many Arizona entrepreneurs as they seek to begin a new business.
Business principals, we note therein, “need to know the difference between an S corporation and C corporation.”
Proven business/commercial attorneys can help them fully understand those differences, appreciate the pros and potential cons of each business form in light of company objectives, and help them work through the requisite legal details that must be attended to in order to implement a specific corporate form.
Indeed, discussions and an ultimate determination regarding business formation mark exciting moments for many entrepreneurs, given the flat importance of making proper decisions at the inception of a new business entity.
What’s better, a C corporation or an S corporation?
We necessarily note that “there is no one-size-fits-all answer” to that question, which can be determined only after thoughtful discussions with seasoned legal counsel.
Guidance from experienced business attorneys will fully touch upon all relevant considerations, ranging from federal and state tax treatment and company accounting methods to asset shielding, stock issuance and more.
Ultimately, and as we note in the above-cited article, close, candid and timely communications with proven legal counsel can help ensure “that all legalities are properly thought through ahead of time so that the best choice is ultimately made.”
Call Cook & Price, PLC today at 480-407-4440 or email us through this website.