On a relevant page of our website at Cook & Price, PLC, we refer to “individuals or groups of people interested in forming the appropriate type of entity for their particular ends.”
As the proven attorneys at our East Valley-based business and commercial law firm in Tempe know, the proper business form for entrepreneurs in Arizona and elsewhere is in many instances a corporation, with establishment of such an entity bringing myriad and distinct benefits.
One such result, as noted online in an article entitled “The Basics of Small Business Incorporation,” is liability avoidance for business owners. Of course, business principals will in some cases always remain liable for debts related to their company (such as when they personally guarantee a debt or commit fraud that harms a corporation), but the aforementioned article makes the point that, “In most situations, owners of corporations will be protected by the shield” provided by an incorporated entity.
Another benefit is this: the ability to take advantage of preferential tax rates afforded corporations. As the cited incorporation article stresses, “a corporation is its own legal entity,” meaning that the business itself — and not its incorporators — will be liable for taxes on business profits.
Of course, there are many additional benefits tied to incorporation for small business owners, as well as some potential drawbacks that need to be timely considered. Corporate formation will centrally involve the drafting and filing of an entity’s articles of incorporation, as well as the bylaws that spell out matters relating to corporate governance. Records need to be maintained. Lawfully mandated meetings must be held. Taxes need to be duly filed. Shares of stock must be issued to shareholders. Positions of key executives must be established and filled.
In short, many questions and concerns can arise concerning corporate-related matters. An experienced commercial law firm can offer timely and sound guidance, as well as ongoing legal assistance, regarding corporate formation and continued business viability.
Call Cook & Price, PLC today at 480-407-4440 or email us through this website.