Business Types Explained
Understanding the differences between LLCs, C-Corps, S-Corps, Sole Proprietorships, and Partnerships can help you choose the best structure for your business.
Choose the Right Business Structure
Each business type comes with its own legal, tax, and operational implications. Here’s a breakdown to help you make the best decision.
LLC (Limited Liability Company)
Flexible, low-maintenance structure with liability protection and pass-through taxation. Ideal for small businesses and solo entrepreneurs.
C-Corporation (C-Corp)
Separate legal entity taxed independently. Great for startups seeking funding or planning to issue stock. Offers the strongest liability protection.
S-Corporation (S-Corp)
Special tax status that avoids double taxation. Best for businesses with fewer than 100 shareholders who meet IRS requirements.
Sole Proprietorship
Simple and inexpensive to set up. No legal separation between you and your business. Best for freelancers and solo operators.
Partnership
Owned by two or more people. Easy to form, but be sure to create a solid agreement to define roles, profit sharing, and liabilities.
Still Not Sure Which One to Choose?
Check out our detailed comparison guides or use our free quiz to determine which business type is right for you.
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