Choose a business structure

U.S. Small Business Administration, 8 min read

This lesson is a guide published on sba.gov.

Read the guide

What you'll get

The SBA compares the common structures, from a sole proprietorship and partnerships to LLCs and C, S and benefit corporations, by ownership, personal liability and taxes. It calls a sole proprietorship a reasonable way to test an idea for a low-risk business, and warns that changing structure later can bring tax costs.

Do this week

Read the row for the structure you'd choose today and the one you'd need if you raised money, and write down what would have to happen for you to switch.