LLC vs. Corporation in Arizona: Which Should You Form?
The most common choice for a new Arizona business is between an LLC and a corporation. Both provide liability protection; they differ in formality, taxation options, and ongoing obligations.
Formalities and paperwork
Arizona LLCs are relatively low-maintenance: they file Articles of Organization with the Arizona Corporation Commission and are not required to file annual reports. Corporations file Articles of Incorporation, adopt bylaws, hold director and shareholder meetings, and must file an annual report.
Taxes
An LLC is flexible: by default it is taxed as a pass-through, but it can elect S-corp or C-corp treatment. A corporation is a C-corp by default and can elect S-corp status if it qualifies. The right answer depends on your income, payroll, and growth plans.
When a corporation makes sense
Businesses that plan to raise venture capital or issue stock options usually need a corporation (often a Delaware C-corp). Most small, owner-operated Arizona businesses are well served by an LLC.
Attorney review pending. This page is published as general legal information and has not yet been reviewed by a licensed Arizona attorney.
Important
- This is general legal information, not legal advice, and does not create an attorney-client relationship.
- Filing requirements and fees change; confirm current Arizona Corporation Commission rules before filing.
Ready to get started?
Tell us about your situation and we’ll point you to the right next step.
Arizona-only · flat fee · no obligation