What is an LLC and why do people use them?

Starting a business and watching it grow can be an exciting experience. From developing products, to designing marketing campaigns, a business can be a fun and exhausting experience. With all this action, many business owners do not realize that there are a variety of business entities available to them, each with their own unique benefits. Different business entities include Sole Proprietorships, General Partnerships, Limited Partnerships, Limited Liability Partnerships, Limited Liability Companies, and Corporations.

A very popular business entity is the LLC. LLC stands for Limited Liability Company. In Arizona the use of LLC’s is governed under the Arizona Limited Liability Company Act listed in A.R.S. 29-601. An LLC is a type of business entity endorsed by the State that has certain specific attributes. Although only an Arizona Attorney can tell you what business entity is best for your business, there are a few general reasons why a business might choose to become an Arizona LLC.

One benefit of the LLC is that it provides limited liability for its members. If the business is a sole proprietorship (SP) or a general partnership (GP), the “Owner” of the business is viewed as the business itself, meaning that any obligations the business takes on or incurs will become the obligations of the individual owner(s). However, with an LLC Arizona law provides that in general a member, manager, employee, officer or agent of a limited liability company is not liable, solely by reason of being a member, manager, employee, officer or agent, for the debts obligations and liabilities of the limited liability company whether arising in contract or tort, under a judgment, decree or order of a court or otherwise. Such protection can be very important in the business context.

In an Arizona LLC the owners are called members and in most cases can include individuals, corporations and other LLC’s. Another benefit often cited about LLC’s is that they allow for some tax benefits. You should consult an Arizona Attorney who can tell you what business entity will limit your tax liability.

In regard to creating your Arizona LLC, an Arizona Paralegal can help draft and submit all of the documentation required to have your LLC recognized by the State. They can prepare the Articles of Organization, obtain your EIN number if requested, deliver the Articles of Organization to the appropriate Arizona authorities and take the other steps required for formalising your Arizona LLC. ALthough a Paralegal cannot tell you what the BEST business entity for your business is, once you have decided they can assure that your Arizona LLC is created in a quick and efficient manner. In order to have your Arizona LLC created today contact a certified Arizona paralegal at 520-327-4000 or online at https://azstatewideparalegal.com

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