An easy, flexible, and popular way to set up your business.
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Members of our Business Advisory legal plan can set up attorney consultations to learn more about how to set up and run a business. Regular attorney consultations last 30 minutes and the annual legal checkup lasts 1 hour. Each legal matter must be unique. If you're not a member, sign up today.
Business types at a glance
View a detailed comparison of LLC and Corporation
Sole Proprietorship
Business licenses may be required (varies by city or county).
Filing with the state is required to form the business.
Can have more than one owner/partner/director.
Offers some protection of personal liability if the entity is sued.
Additional tax filings required (other than personal return).
Eligible for income tax exemptions and donor contributions may be tax deductible.
LLC
Business licenses may be required (varies by city or county).
Filing with the state is required to form the business.
Can have more than one owner/partner/director.
Offers some protection of personal liability if the entity is sued.
Additional tax filings required (other than personal return).
Eligible for income tax exemptions and donor contributions may be tax deductible.
Corporation
Business licenses may be required (varies by city or county).
Filing with the state is required to form the business.
Can have more than one owner/partner/director.
Offers some protection of personal liability if the entity is sued.
Additional tax filings required (other than personal return).
Eligible for income tax exemptions and donor contributions may be tax deductible.
Nonprofit
Business licenses may be required (varies by city or county).
Filing with the state is required to form the business.
Can have more than one owner/partner/director*.
Offers some protection of personal liability if the entity is sued.
Additional tax filings required (other than personal return).
Eligible for income tax exemptions and donor contributions may be tax deductible.