Ernst, Brown & Draper Ernst, Brown & Draper2026-06-02T10:16:24Zhttps://www.ebdlawyers.com/feed/atom/WordPress/wp-content/uploads/sites/1404764/2024/07/cropped-EBD-site-icon-32x32.pngOn Behalf of Ernst, Brown & Draper<![CDATA[LLC or S-Corp: 3 ways a lawyer can help you launch your company]]>https://www.ebdlawyers.com/?p=476622026-06-02T10:16:24Z2026-06-02T10:16:24ZEvery new business needs a strong legal structure. Owners usually choose entities like an LLC or a corporation to protect personal assets.
In Arizona, choosing an LLC or an S-Corporation impacts your taxes and affects your management and growth. A business formation lawyer guides you through this process and ensures your company complies with state rules from the very start.
1. Selecting the optimal tax structure
A lawyer evaluates your goals to find the best choice. Arizona treats LLCs and corporations differently. A standard LLC offers simplicity. However, choosing S-Corp status can save you money on self-employment taxes. An attorney analyzes your revenue projections carefully and recommends the specific structure that lowers your tax bill. This step keeps more profit in your business.
2. Managing the new state portal
Registering an entity requires accurate paperwork. In 2026, the Arizona Corporation Commission launched a new online filing platform. The state named this system the Arizona Business Center. A lawyer handles this new system to avoid errors and manages Arizona’s strict public notice rules. These laws demand newspaper ads in specific counties.
3. Drafting essential governance agreements
Clear rules prevent future partner disputes. Attorneys draft clear operating agreements for LLCs or bylaws for S-Corps. These documents outline ownership percentages, voting rights and profit rules. Without a written agreement, Arizona default law splits all profits equally. This rule applies even if you contribute more capital initially. Good agreements protect your business from internal conflict.
Shielding your investment
Launching a startup involves a lot of risks. Mistakes during the early stage can expose your home or savings to lawsuits and can also lead to costly IRS audits. A skilled attorney protects your vision, secures your capital and increases your business’ chance for long-term success.
]]>On Behalf of Ernst, Brown & Draper<![CDATA[Starting a business in Arizona: What the law requires]]>https://www.ebdlawyers.com/?p=476432026-04-08T15:18:08Z2026-04-08T15:18:08ZWhat business structure fits your goals?
One of the first decisions you will face is choosing a legal structure. Each of the following options carries different implications depending on what you need:
Sole proprietorship: The simplest form, where you and the business are legally the same entity.
Partnership: A structure involving two or more owners who share profits and liabilities.
Corporation: A more formal entity with shareholders, directors and officers.
If you choose to form an LLC or corporation, you will need to file formation documents with the Arizona Corporation Commission. A sole proprietorship does not require state-level registration, though you may still need a trade name filing if you operate under a name other than your own.
Which licenses and permits does Arizona require?
The state does not issue a single, universal business license at the state level. Instead, the permits and licenses you need depend on your location, industry and the nature of your operations.
Most cities and towns in require a local business license or a transaction privilege tax license, which functions as the state's version of a sales tax permit. You will need to register with the Arizona Department of Revenue if your business sells goods or provides taxable services.
Certain industries face additional regulatory layers. Businesses in food service, construction, healthcare, real estate and childcare, among others, must meet specific state or municipal licensing standards before they can legally operate.
How does the state address employment law?
If you plan to hire employees, Arizona imposes several obligations that take effect as soon as your first worker is on payroll. These requirements exist at both the state and federal level, and overlooking them can lead to penalties.
You must also register for unemployment insurance through the Department of Economic Security and obtain workers' compensation coverage as required under state law. You will need to report all new hires to the Arizona New Hire Reporting Center within 20 days of their start date.
The state follows an at-will employment framework, meaning either the employer or the employee can end the relationship at any time without cause. However, that flexibility has limits. Terminations still cannot violate anti-discrimination laws, retaliation protections or the terms of an employment contract.
What does a strong legal foundation look like?
Forming an entity and obtaining the right licenses are important first steps, but a solid legal foundation goes beyond paperwork. Contracts, operating agreements, tax planning and regulatory compliance all play a role in protecting what you build.
Tax obligations also deserve careful attention. Businesses must comply with both state and federal filing requirements, and the structure you choose will directly affect how your income is reported and taxed. Working with a legal professional can help you address these issues before they become liabilities.]]>On Behalf of Ernst, Brown & Draper<![CDATA[Are mandatory retirement policies legal in Arizona after age 40?]]>https://www.ebdlawyers.com/?p=476022026-03-06T10:22:16Z2026-02-04T17:20:58ZMandatory retirement policies often worry workers over 40 who want to keep working based on performance, not age. Federal and Arizona laws strongly limit when an employer can force someone to retire. Knowing how these rules work helps you spot policies that may violate the law.
How age discrimination laws protect workers over 40
Federal law protects workers age 40 and older from age-based employment decisions under the Age Discrimination in Employment Act, which generally applies to employers with 20 or more employees. Arizona law also prohibits age discrimination and usually applies to employers with 15 or more employees. Together, these laws restrict how employers make decisions about hiring, firing, pay, and retirement.
When mandatory retirement policies may violate the law
Most mandatory retirement policies violate age discrimination laws because employers generally cannot force employees over 40 to retire based on age alone. Policies designed to remove older workers to create opportunities for younger employees raise legal concerns. Even informal pressure, such as repeated retirement comments tied to age, can matter when evaluating whether discrimination occurred.
Limited exceptions employers may rely on
Federal law allows a narrow exception for certain high-level executives or high policymakers who meet strict pension and role requirements. Another limited exception applies to specific firefighters or law enforcement officers under defined circumstances. Outside these narrow categories, employers must base employment decisions on performance or conduct, not age.
What Arizona employees should watch for
You should review handbooks, contracts, and retirement policies for age-based language or sudden changes that affect older workers. Keep records of retirement discussions, emails, or policy updates tied to age. Policies that focus on age instead of job duties or performance can signal a legal issue.Mandatory retirement policies often sound official, but many do not comply with the law. Understanding these limits helps you recognize when a policy crosses legal boundaries. Age alone should not determine when your working years end.]]>On Behalf of Ernst, Brown & Draper<![CDATA[What red flags may signal discrimination at work in Arizona?]]>https://www.ebdlawyers.com/?p=475842026-03-06T10:21:58Z2025-12-03T16:37:29ZYou deserve fair treatment at work, but certain behaviors or patterns may signal that your workplace treats you differently because of who you are. When you notice these signs, you gain a better sense of what may happen around you and how it affects your daily work life.
Unequal treatment in job duties or opportunities
Biased treatment often shows up when you receive fewer opportunities than coworkers who hold similar roles. You may see others get better projects, while you get assignments that limit growth. You might also see promotions go to less‑qualified coworkers while your requests for advancement get pushed aside. These patterns can show that your workplace uses unfair standards that target certain groups.
Harsh discipline or negative feedback that follows a pattern
You may notice red flags when your supervisor disciplines you more harshly than coworkers for the same conduct. Written warnings, sudden write‑ups, or strict oversight may point to unfair treatment. If negative feedback appears soon after you speak about mistreatment, that change can raise concern as well. Consistent patterns in discipline can reveal biased motives.
Offensive comments or conduct toward protected traits
Bias sometimes shows up in comments about your race, gender, religion, age, disability, or other protected traits. These comments may come through jokes, remarks about your appearance, or assumptions about your abilities. Even subtle comments can affect your work environment. Repeated conduct that targets protected traits may show that discrimination influences workplace behavior.
Exclusion from meetings, teams, or workplace activities
Another warning sign appears when you get left out of meetings or group projects where you should reasonably participate. Being excluded from important information or teamwork can limit your progress. It may also show that your employer treats you differently because of your background. When this exclusion becomes a pattern, it raises concern about workplace fairness.You can start by tracking what you experience, including dates, messages, and details of each incident. Staying aware of patterns helps you understand how discrimination may appear in your workplace. This awareness gives you more clarity about what affects your work life and what steps support your well‑being.]]>On Behalf of Ernst, Brown & Draper<![CDATA[4 common myths about at-will employment & wrongful termination]]>https://www.ebdlawyers.com/?p=474802026-03-06T10:21:43Z2025-09-30T12:33:56ZWhen it comes to at-will employment in Arizona, there are many misunderstandings that can confuse workers about their rights. These myths often make people think they have no protection against wrongful termination. Knowing the truth can help you better understand your rights as an employee.
Myth 1: At-will means you can be fired for any reason
Many people think at-will employment allows employers to fire someone for absolutely any reason. In reality, employers cannot terminate you for unlawful reasons such as discrimination, retaliation, or violations of public policy. While at-will employment does give employers broad discretion, it does not give them unlimited power.
Myth 2: You cannot challenge a wrongful firing
Some believe that workers have no recourse if they are fired. That is false. Employees can take action if their termination violates state or federal laws. For example, firing someone for filing a workplace safety complaint or for reporting harassment could form the basis of a wrongful termination claim.
Myth 3: Contracts don’t matter under at-will rules
Another misconception is that written or implied contracts have no value in an at-will state. However, an employment contract or even an employee handbook can limit at-will employment. If your contract specifies conditions for termination, your employer must follow them.
Myth 4: Using sick leave can lead to lawful termination
Employees often think they risk being fired if they use their sick time. State law protects workers who use their earned paid sick leave. Termination for this reason could be considered wrongful and challengeable.
Protecting your rights
Understanding these myths can make a big difference in how you view your employment. At-will does not mean lawless, and wrongful termination protections exist. Knowing when those protections apply can help you recognize if your firing was lawful or unlawful.]]>On Behalf of Ernst, Brown & Draper<![CDATA[3 questions to ask after a potential wrongful termination]]>https://www.ebdlawyers.com/?p=474812025-10-30T13:07:09Z2025-09-09T07:56:12ZDid the employer terminate you because of your personal characteristics?
If your employer dismissed you due to a protected characteristic, you may have a case on your hands, as it is illegal. Arizona law forbids employers from firing employees due to discrimination based on age, gender, religion, race, sex, gender and disability. Although this statute prevails, it is important to note that providing proof for this violation is necessary when filing a lawsuit.
Did you sign an employment contract?
Employers can end your employment without any reason at any time without legal consequences. However, your job contract can override this principle, especially if the terms clearly indicate that you are a regular, fixed-term or seasonal employee. For further guidance, you can ask a lawyer to review your contract and see if you can file a claim.
Did the employer fire you after reporting wrongdoing in the workplace?
There might have been a time when you reported an illegal activity occurring in the office. If your employer reacted by firing you, the court may consider it unlawful as per state and federal laws. Under the Whistleblower Protection Act (WPA), employers also cannot punish you for filing a workers’ compensation claim or refusing to partake in illicit activities.
What to do if you experience a possible unfair dismissal
Proving a potential wrongful termination is challenging because of Arizona’s “at-will” employment principle. You will need a strong case to show, which could be tough to accomplish alone. Consider seeking legal counsel from an employment attorney for guidance on collecting strong evidence and navigating the process safely.]]>On Behalf of Ernst, Brown & Draper<![CDATA[Understanding Workplace Discrimination in Arizona: A Guide for Both Employers and Employees]]>https://www.ebdlawyers.com/?p=474822026-03-06T10:21:24Z2025-06-06T21:24:53ZWorkplace discrimination can affect both employees and employers in Arizona. It's essential to understand what workplace discrimination is, how to recognize it, and how to handle it. In Arizona, both state and federal laws protect employees from discrimination. Employers must also ensure they maintain a fair environment for everyone.
What constitutes workplace discrimination?
Workplace discrimination happens when an employee is treated unfairly due to characteristics like their race, sex, age, disability, religion, or other protected attributes. It can happen in various situations, such as hiring, firing, promotions, job assignments, or any aspect of employment. Arizona law prohibits discrimination based on these traits, ensuring equal opportunities for all workers.
Arizona laws on workplace discrimination
Arizona follows both federal and state laws to protect employees from discrimination. The Arizona Civil Rights Act (ACRA) aligns with federal laws such as the Civil Rights Act of 1964 and the Americans with Disabilities Act (ADA). These laws prevent discrimination and harassment based on protected characteristics like race, color, religion, sex, disability, and national origin.
How to address workplace discrimination
If you believe discrimination is happening in your workplace, the first step is to report it to your employer or human resources (HR) department. Employers are required to investigate complaints and take appropriate actions. If your employer does not resolve the issue, you may file a complaint with the Arizona Attorney General’s Office or the Equal Employment Opportunity Commission (EEOC).
Protecting yourself and your employees
Employers should create policies to prevent discrimination and foster a positive work environment. This includes conducting regular training, establishing clear procedures for reporting issues, and ensuring that every employee is treated fairly. On the other hand, employees should be aware of their rights and stand up if they experience any form of discrimination.Workplace discrimination can have serious consequences for both employees and employers, but understanding the laws and procedures in place can help you address and prevent it.]]>On Behalf of Ernst, Brown & Draper<![CDATA[5 critical steps Mesa business owners should take during partnership disputes]]>https://www.ebdlawyers.com/?p=472152025-10-30T08:40:12Z2025-04-21T14:07:04ZDisputes between business partners can derail your operations and damage long-term goals if not handled properly. In Mesa, Arizona, resolving these disagreements quickly and strategically helps preserve your investment and maintain daily business functions.
Identify the core disagreement
Start by clarifying the specific issue at the heart of the dispute. Whether it's financial mismanagement, unequal workload, or disagreements about business direction, pinpointing the cause allows you to address it head-on. Review your original partnership agreement to determine whether the problem falls under a clause that defines how to handle disputes.
Review the partnership agreement
Your partnership agreement should outline dispute resolution procedures, voting rights, profit-sharing rules, and exit strategies. Arizona Revised Statutes (A.R.S.) §29-1034 allows partners to customize terms for resolving disagreements. If the agreement is silent on your current issue, the Arizona Uniform Partnership Act may apply. Understanding what you agreed to helps guide your next steps and protect your rights.
Evaluate business impact and legal options
Disputes can interrupt cash flow, delay projects, or affect employee morale. Assess whether the issue jeopardizes your operations or reputation. Consider mediation or arbitration before pursuing litigation. These methods often resolve issues faster and with fewer costs than going to court.
Communicate constructively and professionally
Open, respectful dialogue can de-escalate tension and preserve working relationships. Avoid making threats or accusations, especially in writing. Instead, focus on interests rather than positions, and try to reach temporary compromises that keep the business functional while you resolve the dispute.
Plan for the future
Whether the dispute results in a renewed commitment or a business split, develop a plan that protects your assets and limits further disruption. Draft an updated agreement or formal dissolution plan to outline roles, responsibilities, and transition steps.Approach partnership disputes with clear goals and a practical mindset. By focusing on solutions instead of conflict, you improve your chances of keeping your business strong and stable.]]>On Behalf of Ernst, Brown & Draper<![CDATA[What do employers and employees need to know about workplace discrimination in Arizona?]]>https://www.ebdlawyers.com/?p=472052026-03-06T10:20:59Z2025-02-26T20:35:36Z
Race
Color
Religion
Sex (including pregnancy, sexual orientation, or gender identity)
National origin
Age (40 or older)
Disability
Both employers and employees have roles to play in preventing and addressing workplace discrimination. Employers must create and enforce policies that prohibit discrimination and handle complaints promptly and effectively while employees should be aware of their right to a discrimination-free workplace and feel empowered to report discriminatory practices without fear of retaliation.
Know how to prevent discrimination
Prevention is the best strategy for combating workplace discrimination. Employers should conduct regular training sessions on workplace diversity and anti-discrimination laws. They should also develop clear, accessible anti-discrimination policies and include them in the employee handbook.
It is also a good idea to regularly review company policies and practices to better ensure they comply with Arizona laws and reflect best practices for fairness and equality.
Take steps to address discrimination
When discrimination occurs, it is important to take steps for legal and ethical resolution. The first step generally involves reporting any incident of discrimination. Employees should report the incident to a supervisor or designated HR representative. It is wise to keep detailed records of the discriminatory behavior, including dates, times, and witnesses.
Employers should then investigate the complaints and take appropriate action to rectify the situation.
Both employers and employees play an important role in keeping a workplace free of discrimination. Employers must provide a discrimination-free workplace, and employees should promptly report incidents. In some cases, additional action is necessary to hold the employer accountable for acts of discrimination. Understanding and addressing workplace discrimination is essential for creating a positive and productive work environment in Mesa, Arizona.]]>On Behalf of Ernst, Brown & Draper<![CDATA[Turning partnership disputes into growth opportunities]]>https://www.ebdlawyers.com/?p=471982025-10-30T08:40:21Z2024-12-17T23:17:57Z5 common partnership disputes and how to resolve them
Every partnership is unique, but some disputes are more common than others. Here are five frequent partnership disputes and suggestions for resolving them:
Unequal contribution: Sometimes, one partner may feel they are contributing more time, effort or resources than the other. To resolve this, partners should have an open discussion to clarify roles and responsibilities and consider creating a formal agreement that outlines each partner's expected contributions.
Financial disagreements: Money is a frequent source of conflict in partnerships. Disputes can arise over spending, profit distribution or financial priorities. Regular financial meetings and transparency in financial records can help prevent misunderstandings. Partners should agree on a budget and establish clear guidelines for financial decisions.
Decision-making conflicts: Disagreements over business decisions can cause significant tension. To manage this, partners should establish a decision-making process that includes how to make decisions and who has the final say. This might involve voting, seeking outside advice or having a tie-breaking mechanism.
Strategic vision: Partners may have different visions for the future of the business. Regular strategic planning sessions can help ensure partner alignment on the business's goals and direction. If differences persist, a neutral third-party mediator can help facilitate discussions and reach a compromise.
Exit strategy disputes: Disagreements can occur when one partner wants to leave the business. It's essential to have an exit strategy from the start, detailing how a partner can exit the partnership, what will happen to their share, and how to manage their responsibilities.
Disputes crop up from time to time in partnerships. Addressing the issue promptly can turn a negative into a positive, effectively helping preserve and grow the business relationship and ensure continued success.
Seek professional guidance for partnership disputes
If partnership disputes become too complex to resolve independently, it may be time to seek professional assistance. A business law attorney with experience handling partnership disputes can provide valuable guidance and support. They can help mediate conflicts, draft agreements and protect your rights and interests. Rather than let unresolved disputes jeopardize your business, a proactive choice can be an opportunity for growth and maintaining a strong partnership.]]>