Business Entity Formation Assistant

Find the right business structure for your venture in the USA.

Just me (one owner) Two or more owners

Very Important (High Priority) Not a major concern (Low Priority)

Pass-through taxation

Profits are passed to owners and taxed on personal returns. Simpler, avoids double taxation.

Corporate taxation

Business pays taxes on profits. Owners pay tax on dividends. Potentially better for reinvesting profits.

Keep it simple

I plan to run a small, straightforward operation.

Seek investors / Go public

I want the ability to attract venture capital or eventually sell stock to the public.

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)

Complete the assistant on the first tab to see your recommendation.

Your Recommended Business Structure