The number of owners is the primary distinction between an LLC and a single-member LLC. A single-member LLC only has one owner, but an LLC can have numerous owners. However, an LLC and a single-member LLC have the same advantages and legal structures. Both provide pass-through taxation and personal responsibility protection.
Arizona taxes LLCs as pass-through entities, which means that the company does not pay taxes on its own revenue. Instead, the individual owners receive a pass-through of the earnings and losses, which they then record on their individual tax filings. Arizona also charges a $50 minimum yearly filing cost for LLCs.
The needs and objectives of the business owner determine whether to form an LLC or a sole proprietorship. A sole proprietorship is easier and less expensive to set up, but it does not provide protection from personal liability. An LLC, on the other hand, offers personal liability protection but is more difficult and costly to establish up. An LLC is typically a better choice for companies with several owners or those with higher liability issues.
The $50 filing fee and $27 publication charge are the costs associated with forming an LLC in Arizona. But additional fees for legal and accounting services can apply. Arizona LLCs must also submit an annual report, which costs $45 to do. In general, Arizona has affordable LLC fees when compared to other states, which makes it a desirable choice for small business owners.
Finally, single-member LLCs are legitimate business entities in Arizona and offer the same level of liability and legal protection as conventional LLCs. Arizona taxes LLCs as pass-through entities and charges a $50 annual minimum filing cost. While forming an LLC in Arizona is reasonably inexpensive, the decision of whether to do so relies on the needs and objectives of the business owner.