Organization of Corporations and LLCs

When you start a business, you will want to set it up as either a (LLC), PLLC, or a corporation.

There are various types of entities depending on whether you have other members or partners in your company.  You will either incorporate for a corporation or organize for an LLC.

The first step is to choose a name that is not being used by any other person/company and to check to make sure it is available and/or reserve the name.  You can also create a trade name to go by.

The second thing is to determine whether you will be an “S” Corp or a “C” Corp or a “501c3” corp.  You should always consult with an attorney and/or an accountant to determine the best entity to choose before creating either one. Also, an excellent idea to talk with a tax professional.

Corporations will keep minutes and have shareholder meetings.  LLC’s are less formal and typically only have a few members that may or may not also manage the company.  Corporations must file an annual report each year while LLC’s do not.

You will also need to obtain an EIN or Employer Identification Number or a TIN (tax identification number) for tax purposes.  If your company will hire employees or collect sales tax, you will need to make sure you are set up with the proper entities to pay the IRS or State of Arizona for the payroll or sales taxes.