S-Corporation or C-Corporation? Incorporating in Arizona

S-Corporation or C-Corporation? Incorporating in Arizona

S-corporations and C-corporations share many of the same advantages and disadvantages. Probably the single biggest drawback to both forms of corporation in Arizona is the difficulty of proper incorporation. The process is much more complex—and requires much more accountant and attorney involvement—than forming a limited liability company, sole proprietorship, or partnership.

Among the many advantages of both the S- and C-corporation in Arizona:

• Limited liability protection.

• Relative ease of fundraising.

Similarities between an Arizona C-corporation and S-corporation

• Separate entities.

• Structure.

• Corporate formalities.

Differences between Arizona S-corporations and C-corporations

• Ownership

• Taxation

Choosing a corporate form

C-corporations may provide a little more flexibility for growing your business, when it comes to issuing new shares or new classes of stock, but that flexibility must be weighed against your interest in maintaining control over your business or ensuring that like-minded shareholders remain the ultimate power behind the corporate throne.

In some states, like Arizona, failure to do and keep the Minutes current can result in the loss of liability protection. So, some businesses hire their law firms to do the Minutes.

Savvy Arizona business attorneys

Located in Phoenix, the Law Offices of Donald W. Hudspeth serve the entire Arizona business community. As business attorneys in Phoenix, we have over three decades of combined experience practicing in all areas of Arizona and Phoenix business laws, and most of us have experience owning our own small business or working in the private sector.

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Published In: Business Organization Updates, General Business Updates, Intellectual Property Updates, Professional Practice Updates, Products Liability Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© The Law Offices of Donald W. Hudspeth, P.C. | Attorney Advertising

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