Planning to start a business in Arizona? You have to understand as early as now that it will demand time and patience. You also need to exert a lot of effort and have the right resources if you want to build a business with a strong foundation.
Entrepreneurs like you need to have background knowledge on the most important part of the startup process – incorporation.
In this article, we’ll discuss the 5 solid reasons why you need to incorporate, and after that I’m going to introduce to you the top 3 resources for incorporating a business in Arizona.
Incorporating your Arizona business will build and develop its credibility. The latter is one of the most difficult things to establish and just by simply incorporating, you’ll be able to gain the trust of people.
When your business is incorporated, it means that you are officially recognized by the federal and state government as a legitimate business. You are given the freedom to operate and conduct business.
An Inc., LLC, Co. and Co., after your business name will make a huge difference – it will create a positive response among your consumers. By having these abbreviations, you are proving your trustworthiness and reliability.
If there’s more than one founder of your Arizona business, or you have other partners, no matter how close you are, arguments are inevitable. Issues will usually stem from equity and how it will be divided fairly among business owners.
Incorporating your Arizona business will automatically solve this problem because you can issue individual stocks to all business owners so that equity is evenly split. If you incorporate as an LLC and decide not to issue stocks, you will still have a document drafted stating how ownership will be divided.
Raising funding for your business is hard, you need to go through loops and holes just to find investments – this is even made more difficult if you leave your business unincorporated.
For an investor to invest in your Arizona business, they need to see that you are officially registered in your state as a business entity. Venture capitalists for instance, are more likely to choose Corporations because they have varying types of stocks.
Also, if you have an incorporated business, you will be able to easily develop your credit profile as a separate entity, something that you may need in the future, for example if you meet financial problems and crisis.
One of the many benefits that you’ll get from incorporating your Arizona business are tax benefits. In some instances, corporate taxes are lower than individual taxes. Aside from this, LLC’s and Corporations may also qualify for tax benefits and deductions, which unincorporated businesses don’t.
You will also be able to save up on operational costs because you’ll have many tax deductions on this part of your business. Considered operational costs include employee salary and benefits, production costs, advertising costs and others.
Among all the reasons why you need to incorporate your Arizona business, this is the most important. It’s easy to understand – if you don’t get your business incorporated, you are considered one, if you incorporate, you and your company are considered different entities.
Which means, that any transactions, problems and issues with your Arizona business is not your liability. It is completely a separate entity that operates on its own and has its own right. Therefore, if any lawsuits and legals problems come up, you will not be held responsible for anything. Protect yourself from legal liabilities, incorporate now!
If you want to experience the benefits and advantages of incorporating your Arizona startup, how about you go through the process first-hand? I’m sure you won’t regret it, because despite of the cost, it will be helpful for your business in the long run!
Once you’ve decided, you can use these 3 resources, they’ll help you save time and money too!
Incorporating a business in Arizona may take some effort on your part – you have to research and read about the process. Whether you’re planning to start an LLC or Corporation, useful guides are available to walk you through the steps.
I understand that at this point, you may not have the time to personally incorporate your business and you surely don’t want to file the wrong document, if this is the case, I recommend that you use an online incorporation service – it’s cheaper and faster.
You may be very familiar with LegalZoom, but there are many more options available and here are some of them!
IncFile is the most affordable incorporation provider in the industry. At $49, you’ll be able to take advantage of features which include a one-on-one business consultation, unlimited business name availability searches, order tracking tool and their one-day processing.
You can read the review for more info!
CorpNet is a new incorporation provider founded in 2008 by a couple entrepreneur who have one goal in mind – to simplify the incorporation process for small business owners and provide them with a cheap but quality service.
CorpNet’s packages start at $79 and some of the features you can use are the Business Structure Wizard, free business consultations, free trademark search and the free business name search. For more information, you can read the review!
BizFilings is another excellent incorporation service that you can check out. Since its launch in 1996, the online incorporation provider has assisted thousands of entrepreneurs.
For $99, you’ll be able to use services which include its business name verification tool, BizComply, Registered Agent Service and the order tracking tool.
Check out more of the incorporation provider, read the review.
Features that are offered by these incorporation providers may differ from one another. For instance, IncFile offers their Registered Agent Service for one full year while BizFilings only has this free service for 6 months. BizFilings on the other hand, has the BizComply which is a monitoring and document library tool that IncFile doesn’t have.
At the end of the day, you need to make a decision and choose the incorporation service that best fits your business.
From legal protection and credibility to tax advantages, incorporating your business in Arizona should be something that you have to think about.
There’s one question that you need to answer, should you use an online incorporation service or handle the process yourself? It’s all up to you. Good luck!