Arizona Corporate Governance Audits
May 14, 2021
Arizona Corporate Governance Audits
Every company must ensure that it follows federal and state laws regarding corporate governance issues—that is, how the company is structured and operates day-to-day. Particular areas of interest to regulators include issues surrounding transparency, accountability, and sustainability. Running afoul of rules in these areas can result in fines, other legal sanctions, or possibly even dissolution of the company.
As a result, you need an experienced corporate attorney like Timothy Coons to help ensure that your business is operating lawfully. He and his team can conduct a corporate governance audit of your business, focusing on areas such as:
Every type of business structure, including limited liability companies, partnerships, and corporations, has both advantages and disadvantages. These include how these types of companies are taxed; what corporate formalities (such as holding regular board meetings) they have to follow if any; how much they cost to start and maintain; and other issues.
If your company is at the formation stage or you think another corporate form might be more appropriate for your existing business, Counxel Legal Firm will provide the advice you need to make crucial decisions about business structure. If your business has already been registered, he can also determine if the registration was lawful.
If you have a partnership in Arizona, you should have a partnership agreement. This is true for all types of partnerships, including general partnerships, limited partnerships, limited liability partnerships, and limited liability limited partnerships. A partnership agreement is like an instruction manual that lays out the rights and responsibilities of the partners, as well as how to handle disputes, the death or disability of one of the partners, or an ownership change.
It should cover key areas like the duration of the partnership, the partners’ responsibilities and contributions, how decisions are made and disputes are resolved, how partners are compensated, and procedures for changes in ownership. Counxel Legal Firm will review your existing partnership agreement or help draft one if needed.
Required Licenses to Operate
Timothy Coons team will also review all of your licenses to ensure that you have the ones you need to operate legally. For example, if you sell products or provide taxable services in Arizona, you probably need an Arizona TPT License from the Arizona Department of Revenue. In addition, although Arizona itself doesn’t require a business license, most cities and towns in the state do for companies based in their jurisdictions.
Some municipalities also require companies that do business in their jurisdictions to obtain a business license even if they’re not based there. A corporate governance audit will check the regulations in all municipalities in which you do business to make sure you’re in compliance.
A corporate governance audit can also look at:
– Appointment of Directors
– Election of Officers
– Procurement and investment practices
– Shareholders’ meetings
– Tax remittances
– How profits are distributed
Each of these areas is governed by specific federal and/or state laws and regulations that must be followed in the letter. A corporate governance audit will ensure that your company is compliant.
Contact Counxel Legal Firm
This article is intended for informational purposes only and does not constitute legal advice for your specific situation. Use of and access to this article does not create an attorney-client relationship between you and Counxel Legal Firm. Please contact email@example.com or 480-536-6122 to request specific information for your situation.
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