| Comparison of Arizona Business Entities |
| |
Sole Proprietor |
LLC |
Corporation |
S Corp |
| Control |
Owner has complete control. |
Members, unless management of company is reserved to managers in Articles of Organization or Operating Agreement |
Shareholders elect Directors who have control of the Arizona Corporation. Directors appoint officers. |
Same as regular corporation. |
| Ownership Restrictions |
Only one owner. |
Members are owners of company. Minimum of one member in Arizona. |
Shareholders are owners. Minimum of one shareholder required in Arizona. |
Shareholders are owners. Maximum of 75 shareholders, must be U.S. citizens. |
| Initial and Subsequent Filing Requirements for Arizona |
Fictitious Name Certificate and or Trade Name Affidavit |
Articles of Organization, Acceptance of Registered Agent. Articles of Amendment and miscellaneous Notices when information in initial articles changes. |
Articles of Incorporation, Certificate of Disclosure, Corporate Bylaws, Consent of Registered Agent, Annual Reports. |
Same as regular business, for profit corporation. |
| Limited Liability |
No. Owner is personally liable. |
Limited Liability. Members of company are protected. Amount of investment is at risk. |
Limited Liability. Shareholders of company are personally protected. Amount invested in shares is at risk. |
Limited Liability. Same as business corporation. |
| Officers |
None |
Not by default. Arizona LLC Operating Agreement can permit company to appoint Officers. |
Yes, required. |
Yes, required. |
| Controlling Documents |
Business Plan |
Articles of Organization, Operating Agreement. |
Articles of Incorporation and corporate bylaws. |
Same as regular, C Corporation. |
| Subject to Income Tax at Entity Level |
No. Tax items reported on Schedule C of personal return |
Not by default. May elect corporate tax status. |
Yes. Shareholders also report income from distributions and bonuses. Officers and directors report salary income. |
No. Taxed as a partnership or LLC. Must meet requirements. |
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