Consultants provide expert advice that clients rely on for critical business decisions. If your recommendation leads to a financial loss, you could face a lawsuit. An LLC shields your personal assets from these professional liability claims while also giving you the ability to elect S-Corp taxation to reduce self-employment taxes. Phoenix is home to ~150K businesses and has a population of 1.6M, making it a thriving market for consultants. Forming your LLC in AZ provides personal asset protection and positions your consultants business for growth in the Phoenix metro area.