- How much formality can you tolerate?
- How much personal liability can you risk?
- Which entity will minimize your taxes the most?
- Where will you get the money to fund this business?
The entrepreneur has many choices when choosing a business entity. For most business owners, the relevant categories to choose from are a sole proprietorship, a general partnership, a limited liability company (LLC), and then two versions of the Corporation—the S-Corp and the C-Corp. There are 4 main questions to consider when choosing between these entities: