Start, Grow, or Transition Your Arizona Business

Have you decided to start your own business in Arizona? Maybe you already have a business but you want to change your entity classification. Either way, it is important to work with a business lawyer to make informed decisions. At LifePlan Legal AZ, we can help you understand your options and guide you through the process of business formations in Arizona.

Choosing the Right Business Entity 

You have probably heard of many different types of business entities. The most common include limited liability corporations, general partnerships, limited partnerships, corporations, sole proprietorship, and professional associations. The two most common are the c-corp (corporations) and the LLC (limited liability corporations).

• Limited liability corporation: if you want to limit your personal exposure in the event of a lawsuit or other legal action against the business, then an LLC may be most appropriate.
• Corporations (C-Corporation): this is usually reserved for large companies with many shareholders and employees. This type of entity comes with its own set of rules.
• There are also limited partnerships and general partnerships. These are limited by the number of partners and have at least one general partner (the person who controls the company) and limited partners.
• Sole proprietorship: this is typically a small to medium sized business that offers products or services on an individual basis, without any formal organizational structure.
• The final type of entity is professional associations. Professional associations are business entities that are limited in scope, usually to one specific industry.

Our team will help you understand the differences and the pros and cons of each. This discussion is important as it impacts the taxation of your business, any potential liability exposure for you and your partners, and your ability to transfer ownership in the future.

Setting Up Your Business 

Once you select the proper entity structure for your business, we will assist you in filing the appropriate documents and preparing organizational governing documents (such as articles of incorporation, by-laws, and operating agreements). These important documents create a roadmap for business growth.

Flat Fee Packages

Single Member or Multi-Member ARIZONA LLC FORMATION

Once we gather the necessary information, we prepare your Limited Liability Company (LLC) operating agreement and file your Articles of Organization with the Arizona Corporation Commission. Contact us for help with forming an LLC in Arizona.

Corporation Formation

Once we gather the necessary information, we prepare your corporation’s governing documents, including corporate bylaws and file your Articles of Incorporation with the Arizona Corporation Commission.

While these are the most popular business entities and packages we offer, don’t hesitate to ask about other entity formation types or business projects including our exit planning, growth planning, and Business Succession Planning services.

WE CAN HELP

Click here to schedule a free strategy session or call (602) 932-3187 to speak with a member of our team.

Types Of Business Formation Matters We Handle

The type of business entity you select affects your tax liability (if any), how you’re able to raise capital, and what kind of protections you have in the event of a civil action. Selecting the right business entity and properly setting up your business from the outset can prevent many expensive legal problems down the line. Our Mesa, AZ business formation layer helps you with these business formation legal matters and more:

• LLC Formation: A Limited Liability Corporation (LLC) is a flexible entity that offers considerable protection for the partners’ personal assets. An LLC also has a more simplified management structure than other types of business entities. Our firm drafts the operating agreement and other legal documents files them in the appropriate venues and advises you and your parents on compliance matters.

• C-Corporation Formation: A C-Corp is a registered business entity with the state of Arizona that offers limited liability protection for its shareholders. We draft your articles of Incorporation and file them with the Arizona Secretary of State, advise you on appointing a board of directors, and inform you of required actions, like an annual meeting and proper recordkeeping. Our firm can also advise you of your tax obligations and proper compliance.  

• S-Corporation Formation: An S-Corp is similar in function to a C-Corp, although this business structure avoids the double taxation that a C-corporation faces. Our Mesa business formation attorney drafts the documents necessary to form the entity, including incorporating it as a standard corporation, then guides you through filing your S-Corp election with the IRS.

• Partnership Formation (General & Limited Partnerships): We work with you and your business partners to establish a limited or general partnership, including drafting a comprehensive partnership agreement that covers each partner’s responsibilities and investments and contains clauses for dispute resolution. We prepare a customized, functional agreement.

• Sole Proprietorship: A sole proprietorship is a simple business formation, but it must still be properly and legally established. We advise you of your tax obligations and legal compliance and offer a risk management assessment.

• Nonprofit Organization Formation: To fully take advantage of the tax-exempt status of a nonprofit corporation, the entity must be properly established. We guide our clients through the process of securing their 501(c)(3) tax-exempt status and advise them on state and federal regulations applicable to nonprofits. We can also draft appropriate bylaws and governance policies and advise on fundraising protocols.

• Professional Entities (PLLCs & Professional Corporations): Licensed professionals, such as accountants, doctors, and lawyers, are subject to strict regulatory standards that they must adhere to. We assist with the formation of your PLLC in accordance with all and any requirements of your professional organization (e.g., the Arizona Bar Association) to ensure proper licensing compliance and protection of personal liability.

• Joint Ventures and Strategic Alliances: Our services include drafting the initial joint partnership agreement to align with your business goals. We can define the governance terms of your agreement and ensure you comply with all relevant legal and industry-specific regulations.

Do you need help forming a new enterprise? Our Mesa business formation lawyer guides you through the process to ensure your new entity is legally sound. Please contact LifePlan Legal AZ today for a professional consultation.

5 Steps In A Business Formation

Starting a new business is an exciting milestone, but it also requires careful planning and legal structure to start off on the right path. Whether you’re opening a small local company or forming a growing enterprise, taking the right steps early helps protect your investment and supports long-term success. Our Mesa, AZ business formation can help you through every step of the process when you call us today!

1. Choosing the Right Business Structure

The first step in forming a business is deciding on the legal structure that best fits your goals. The most common options include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each has different implications for taxes, liability, and management. Choosing the right structure determines how your business operates and what responsibilities come with it. It’s our law firm’s goal to help 10,000 Arizona families and small businesses, and we can help you choose the correct business structure. Especially if you plan to run a family-owned business, it’s a good idea to work with our Mesa business formation lawyer.

2. Registering the Business Name and Entity

Once the structure is decided, the next step is selecting and registering a business name. This process includes checking state databases to confirm that the name isn’t already in use and filing the appropriate paperwork with the Arizona Corporation Commission. If the business will operate under a name different from its legal entity, you may also need to register a “Doing Business As” (DBA) name.

3. Drafting Foundational Documents

Even if your business starts small, clear written agreements are essential. LLCs typically need an operating agreement that defines ownership, decision-making authority, and profit distribution. Corporations require bylaws outlining governance rules and shareholder rights. These documents serve as internal guides that help prevent misunderstandings among owners or partners. Without them, disputes can arise when dealing with decisions about money and responsibilities.

4. Obtaining Permits, Licenses, and Tax Identification

Depending on the type of business and location, you may need various licenses or permits to operate legally. This could include local business permits, professional licenses, or industry-specific approvals. You’ll also need an Employer Identification Number (EIN) from the IRS for tax purposes and to open business bank accounts.

5. Establishing Financial and Legal Protections

The final step involves setting up systems to keep your business compliant and organized. This includes opening separate bank accounts, maintaining accurate records, and keeping up with annual filings. It’s also wise to consider contracts for employees, vendors, and clients that clearly define expectations.

Take The Next Step Toward Your Business Goals

Starting a business is more than paperwork—it’s a commitment to your future. By following these five steps, you set the stage for stability, protection, and growth. If you’re ready to build your company with a solid legal foundation, our team is here to help guide you every step of the way. Our team provides values like empathy and integrity when you call us to schedule your free consultation. Call us today at LifePlan Legal AZ to work with our Mesa business formation lawyer!

Business Formation FAQs

Starting a business can be exciting, but it also involves legal decisions that can impact your success. Choosing the right structure, filing paperwork, and meeting state requirements are key steps that must be handled correctly. At LifePlan Legal AZ, we help new and growing business owners make informed choices about forming their companies in Mesa and throughout Arizona. Call our Mesa, AZ business formation lawyer today to see how we can help!

Do I Need A Lawyer To Start A Business In Mesa?

Yes, in most cases, it’s a good idea. While you can file some formation documents on your own, having legal guidance helps you avoid mistakes that might cause issues later. Our team has helped dozens of people to decide what type of business they want to run, such as an LLC, corporation, or partnership. Based on your goals, tax situation, and risk level, you may also want to factor in your business formation in your estate plan. Working with our team also helps with drafting agreements, protecting personal assets, and meeting Arizona’s registration requirements.

Can A Lawyer Help Me Choose Between An LLC And A Corporation?

Yes. Choosing between an LLC and a corporation can be one of the most important business decisions you make. Each option offers different benefits for taxes, ownership, and liability protection. For example, LLCs are usually simpler to manage and offer flexible tax treatment, while corporations can attract investors and allow for stock issuance. Our Mesa business formation lawyer can help you decide which one fits your needs.

How Long Does It Take To Form A Business In Mesa?

The timeline depends on the type of business and how quickly documents are filed and approved. In most cases, forming an LLC or corporation in Arizona takes a few days to a few weeks. The process includes filing Articles of Organization or Incorporation with the Arizona Corporation Commission, securing an Employer Identification Number (EIN), and meeting any local licensing requirements.

Will Forming A Business Affect My Personal Taxes?

Yes, it can. The structure you choose affects how your income is taxed. For instance, an LLC can be taxed as a sole proprietorship, partnership, or corporation, depending on your preferences. Corporations, on the other hand, may face double taxation unless they elect S-Corp status.

Can I Change My Business Structure Later?

Yes. Many business owners start with one structure and later decide to change as their company grows or their goals shift. For example, you may begin as an LLC and later convert to a corporation to attract investors. Legal guidance helps make the transition smoother and prevents issues with ownership or liability, whether you’re running a major enterprise or a small family business.

Get Legal Help Today

Starting a business is a major step, and the right foundation makes all the difference. Whether you’re launching a new company or restructuring an existing one, working with our team gives you peace of mind. Our Mesa business formation lawyer, Jake Carlson, has a goal of helping 10,000 Arizona families and businesses. Call us today at LifePlan Legal AZ to see how we can help!