Business Entity Formation Assistant
Find the right business structure for your venture in the USA.
| Feature | Sole Proprietorship | Partnership | LLC | S Corporation | C Corporation |
|---|---|---|---|---|---|
| Owners | One | Two or more | One or more (members) | Up to 100 (shareholders) | Unlimited (shareholders) |
| Liability Protection | None | None (for general partners) | Strong | Strong | Strongest |
| Taxation | Pass-through | Pass-through | Pass-through (default) or Corporate | Pass-through | Corporate (potential double tax) |
| Best For | Solo entrepreneurs, freelancers, low-risk ventures | Businesses with two or more owners, professional groups | Most small businesses seeking liability protection and flexibility | LLCs or C-Corps seeking potential tax savings on distributions | Businesses seeking to raise capital from investors or go public |
| Formation Cost | Minimal (business license) | Low (partnership agreement recommended) | Moderate (state filing fees) | Moderate to High | Highest (most complex) |
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Complete the assistant on the first tab to see your recommendation.
Your Recommended Business Structure
Based on your answers.
Your Selections
General Next Steps
${recommendation.reason}
`; const answersText = { owners: { one: 'One owner', multiple: 'Multiple owners' }, liability: { high: 'High priority for liability protection', low: 'Low priority for liability protection' }, taxation: { pass_through: 'Prefer pass-through taxation', corporate: 'Prefer corporate taxation' }, future: { simple: 'Plan to keep it simple', investors: 'Plan to seek investors' } }; summaryOutput.innerHTML = `Owners: ${answersText.owners[answers.owners]}
Liability: ${answersText.liability[answers.liability]}
Taxation: ${answersText.taxation[answers.taxation]}
Future Plans: ${answersText.future[answers.future]}
`;
let steps = [
'Choose a Business Name: Ensure it is unique and not already registered in your state.',
'Register Your Business: File formation documents with your state\'s Secretary of State (e.g., Articles of Organization for an LLC).',
'Obtain an EIN: Apply for an Employer Identification Number from the IRS if you plan to hire employees or file certain tax returns.',
'Open a Business Bank Account: Keep your business and personal finances separate.',
'Check for Licenses and Permits: Research necessary federal, state, and local licenses to operate legally.'
];
if (recommendation.name.includes('LLC') || recommendation.name.includes('Corporation')) {
steps.splice(1, 0, 'Appoint a Registered Agent: Designate a person or service to receive official legal and state documents.');
}
if (recommendation.name.includes('Partnership')) {
steps.splice(1, 0, 'Draft a Partnership Agreement: Clearly define roles, responsibilities, and ownership stakes.');
}
nextStepsOutput.innerHTML = steps.map(step => `