Starting a business in Arizona?
A limited liability company may be the answer.
How you structure your new business will affect many aspects of it in the future. This includes the amount of tax you pay.
A limited liability company (LLC) may be the correct solution.
An LLC may be created for almost any legal business purpose except insurance and banking. The asset protection a properly structured LLC can provide is especially useful in the medical, construction, real estate, retail, transportation or other high-risk sectors.
We help you understand:
- What an LLC can and can’t do
- How to set up your company without the stress of completing paperwork
- How your company may impact the rest of your estate planning
What are the benefits of an LLC?
If your business is a sole proprietor or general partnership, you and your business are legally the same entity.
That means you (and your partners) can be held personally liable for any claims made against your business.
A limited liability company protects you from this.
That is why it is especially beneficial for high-risk sector businesses, where personal liability can be considerable.
Other benefits include:
- A reduced amount of paperwork and filings with the state.
- Ability to minimize tax payable on income, gifts, etc.
- Flexibility in ownership and management
- Flexibility with the distribution of profits
- Integration with your overall estate plan
What are the potential drawbacks?
There is more than one way to set up an LLC and mistakes can be costly.
Professional guidance from an LLC attorney can help prevent:
- Excessive taxes being paid on profits
- Disputes where there is more than one person involved in the business
- Interruption to the business when there are major issues, such as death or disability to one of the owners
- Dissolution of the company or hostile takeover due to external events
It is important to be exacting when setting up an LLC and have it completed correctly to avoid future problems.
What is the setup process?
The first step is to file paperwork with the state of Arizona. That is the simple part.
The next steps are to:
- Formulate an operating agreement explaining in detail how the company will be run
- Prepare tax filings
- Ensure you have documentation that guarantees the continuation of the business in the event of a crisis
Our firm can complete the paperwork in consultation with you, freeing up your time to plan other areas of your business.
How will this work with your estate plan?
Setting up an LLC is best done with a lawyer who understands your financial position and how to integrate your LLC with the rest of your estate plan.
A limited liability company should be formed with full oversight of the contents of your estate plan and your tax planning strategy.
This can be provided as a one-off service but it is often in addition to other services for existing estate planning clients.
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When it was time to update our estate plan we turned to Kent Phelps. We were only two days away from an extended trip overseas and needed it done fast but done right – especially with a child who has special needs. Our documents were completed, signed, notarized and witnessed in a day! And we were confident it was done right because we had the help of an experienced attorney. So grateful to Kent for going above and beyond so we could enjoy our trip with peace of mind!
We had known for many years that we needed an estate plan but just never got around to doing it. Our son hired Kent Phelps to do his estate plan and encouraged us to contact Kent and get it done – so we did! We immediately felt like Kent “got” our unique family situation and knew just what to do. We wish we had done this sooner but what a great feeling it is to know that what we’ve worked so hard for all these years will be protected and go to the right people when it’s our time. We highly recommend Kent to anybody who needs an estate planning attorney.
Amazing In Every Way! Kent was amazing. He excelled in communication, and he was very understanding and listened to our unique situation. He explained everything in detail and was an amazing advocate for what we wanted to do. I would highly recommend him and his services.
We were looking for an estate planning attorney and were referred to Kent Phelps by a friend. We felt like he really listened to us as we talked about our family and business and what we wanted to accomplish. Kent took the time to help us understand how living trusts and LLC’s work and how they can help protect our family and property. The fixed fee approach was also very appealing to us. We were excited when we received our estate planning and LLC notebooks! Being able to have instructions in our trust that make sure our children receive what we leave them in a way that will truly help, rather than harm them has given us the peace of mind we were hoping for. So grateful we found Kent!
Mr. Phelps has provided exceptional work and advice. I have recommended many family and friends to Mr. Phelps because of his professionalism.
Kent’s unique perspective and focused expertise set him apart from his peers. His willingness to completely understand his client’s goals, and only then offer appropriate suggestions is refreshing. With an ability to take complex asset protection strategy and explain it in common context, it is easy to recommend him.
Mr. Phelps’s services have been used to handle some amendments to business documents following my divorce. The amendments were thorough and filed in a timely manner. While this was a simple transaction, I fully expect the same level of effort on complex transactions. I highly recommend Mr. Phelps for legal needs.
Kent has ideas and solutions that were very valuable to us. I have recommended Kent and his firm to many of my associates.
Kent is an exemplary advocate for his clients. It is an honor to have worked with him and witness his high ethical standards.