Which business structure is right for you?

Answer five quick questions to see whether a sole proprietorship, an LLC, an S corp election or a C corporation fits your plans.

1. Who will own the business?

Just me Me and one or more partners

2. Do you want to keep your personal assets (home, savings) separate from business debts and lawsuits?

Yes, that matters to me Not a concern yet (I'm testing an idea with little risk)

3. Do you plan to raise money from outside investors who expect to buy shares (for example, venture capital)?

Yes, that's the plan No, I'll fund it myself or borrow

4. Do you expect profit well above what a reasonable salary for your role would be?

Yes, consistently No, or not yet Not sure yet

5. Would you be willing to run payroll for yourself and file a separate business tax return?

Yes, or I'd pay someone to I'd rather keep it simple

Keep reading

Choosing the right business structure
LLC vs S corp: how the two differ
Start here: form your LLC in 7 steps

Disclaimer: The information in this article is for educational purposes only and does not constitute legal, tax, or financial advice. Business formation rules, fees, and deadlines vary by state and change often. Always consult a qualified attorney, CPA, or tax professional before making decisions about your business.

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