Before you begin your new small business development, you will need to select the most appropriate form of legal entity for your business. If you take no action, your business form will be a Sole Proprietorship. Other legal entity forms include: Partnership, Corporation, Limited Liability Company (LLC), Limited Liability Partnership (LLP) and others. Note that C and S Corporations are simply corporations but named C or S because of how they are taxed for federal income tax purposes.
Because corporations and LLC's offer some personal liability protection from business related problems, they are often favored by attorneys who advise small business owners. In addition, there are considerable differences in the cost and legal requirements of establishing and maintaining the various forms of business entities.
You can find out more about the advantages and disadvantages of each form of legal entity by attending one of our workshops that feature a speaker discussing the matter. In addition, you can gain a preliminary understanding of the subject by requesting the assistance of a SCORE Management Counselor. Click Requesting a Management Counselor.