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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