Business Structure Wizard

Will the business be for the purpose of providing an income?

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Does the business perform one of the following services as a state licensed professional?

What industry best describes your business?

If a customer (or anyone else) filed a lawsuit against the business, would you want your personal assets like your home, car and savings to be protected?

Would you prefer to allow the owner(s) to make the day to day decisions or would you like directors (who are elected by shareholders, investors or members) to appoint officers to run the daily operations?

Most people in this situation choose to form a Limited Liability Company (LLC).

An LLC is its own entity, responsible for its own debts and liabilities. This structure protects the personal assets of the owners (members). This is the most popular business structure because it provides the structural simplicity of a sole proprietorship or partnership with many of the protections of a corporation. An LLC also allows for varying tax strategies, although generally are taxed exactly like a sole proprietorship or partnership.

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Most people in this situation choose to form a Professional Limited Liability Company (PLLC).

A PLLC is its own entity, responsible for its own debts and liabilities. This structure protects the personal assets of the owners (members) from activities related to its general business, but does not protect assets from liabilty related to the licensed service. For instance, if someone slips and falls in a doctor's office, the LLC would protect the assets of the doctor, but if the doctor neglectfully misdiagnosed a patient, he/she is still personally responsible.

This is the most popular business structure because it provides the structural simplicity of a sole proprietorship or partnership with many of the protections of a corporation. A PLLC also allows for varying tax strategies, although generally are taxed exactly like a sole proprietorship or partnership.

Be sure to use the letters "PLLC" after the name of the business to ensure proper filing.

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Most people in this situation choose to form a Non-Profit Corporation.

A Non-Profit Corporation is an organization generally exempt from most, if not all state and federal taxes. Their purpose is generally something of intrinsic value or a service to the community. Such organizations must apply for and be approved for exempt status by the IRS and/or state. Examples include: Churches, missions, youth sports teams or leagues, homeowners associations and others.

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This could go multiple ways!

Although most smaller businesses choose a Limited Liability Company (LLC) in your situation, either of the options below might be appropriate. The brief descriptions below will help you make that decision and you are always welcome to call our experts for further explanation at 888-701-6450.

LLC
An LLC is its own entity, responsible for its own debts and liabilities. This structure protects the personal assets of the owners (members). This is the most popular business structure because it provides the structural simplicity of a sole proprietorship or partnership with many of the protections of a corporation. An LLC also allows for varying tax strategies, although generally are taxed exactly like a sole proprietorship or partnership.

Register Your LLC Now

Corporation
A Corporation is a business structure that requires shareholders, officers and directors. This structure is generally used by businesses that have large sales volumes, hold a large number of assets and/or have a number of owners (shareholders or investors) not involved with the operation of the business.

Register Your Corporation Now

This could go multiple ways!

Although most smaller businesses choose a Limited Liability Company (LLC) in your situation, either of the options below might be appropriate. The brief descriptions below will help you make that decision and you are always welcome to call our experts for further explanation at 888-701-6450.

LLC
An LLC is its own entity, responsible for its own debts and liabilities. This structure protects the personal assets of the owners (members). This is the most popular business structure because it provides the structural simplicity of a sole proprietorship or partnership with many of the protections of a corporation. An LLC also allows for varying tax strategies, although generally are taxed exactly like a sole proprietorship or partnership.

Register Your LLC Now

Non-Profit Corporation
A Non-Profit Corporation will generally apply for tax exempt status with the IRS, but some very small organizations like homeowners associations that take in very little money, and hold over almost no money year over year may choose to file as a non profit and not apply for exemption because there is so little income, no taxes will be due.

Note that these entities may still have to FILE a tax return. Speak to a tax professional for more information on compliance.

Register Your Non-Profit Now

This could go multiple ways!

Although most smaller businesses choose a Professional Limited Liability Company (PLLC) in your situation, either of the options below might be appropriate. The brief descriptions below will help you make that decision and you are always welcome to call our experts for further explanation at 888-701-6450.

PLLC
A PLLC is its own entity, responsible for its own debts and liabilities. This structure protects the personal assets of the owners (members) from activities related to its general business, but does not protect assets from liabilty related to the licensed service. For instance, if someone slips and falls in a doctor's office, the LLC would protect the assets of the doctor, but if the doctor neglectfully misdiagnosed a patient, he/she is still personally responsible.

This is the most popular business structure because it provides the structural simplicity of a sole proprietorship or partnership with many of the protections of a corporation. A PLLC also allows for varying tax strategies, although generally are taxed exactly like a sole proprietorship or partnership.

The form for a PLLC is the same as for an LLC, so be sure to use the letters "PLLC" after the name of the business to ensure proper filing.

Register Your LLC Now

Professional Corporation
A professional corporation is one that only performs services in a designated profession. It is a specific type of corporation for professionals like doctors, lawyers, accountants, etc. The professional is able to form a corporation, and limits their personal liability for activities related to its general business, but does not protect assets from liabilty related to the professional service. For instance, if someone slips and falls in a doctor's office, the PC would protect the assets of the doctor, but if the doctor neglectfully misdiagnosed a patient, he/she is still personally responsible.

The form for a PC is the same as for an Corporation, so be sure to use the letters "PC" after the name of the business to ensure proper filing.

Register Your Corporation Now

Most people in this situation choose to form a Sole Proprietorship or Partnership.

A Sole Proprietorship is a simple business structure owned and run by a single individual (regardless of whether they have employees). It is not a legal entity, nor does it "create" a business or offer any protection for the personal assets of the owner. The owner is personally liable for all business debt (loans, lawsuits etc.). A Partnership is very similar to a Sole Proprietorship, but has multiple owners. It is its own entity only insofar as it groups two or more people together for the purpose of business and liability. It also does not offer any protection of personal assets, and the owners are generally all equally and severally liable for all business debt.

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We will help give you an idea of what business structure is most suitable for your new business. This tool is intended as general guidance, not legal advice. As always, you can speak to a live representative about questions you have at 888-701-6450.

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