This is primarily a tax decision, with C corporations being taxed as corporations, and S corporations being taxed as partnerships. The second important decision to make is whether you are going to be a for-profit or not-for-profit business.

Choices include corporation, LLC, partnership, and sole proprietorship This decision is closely related to the business’s purpose and is not necessarily controlled by how much revenue you think you might have but rather by who is going to “own” the entity and what it does with the profit…

business structure — legal organization of a business; also called entity selection. C corporation — corporation taxed the corporate level, and then again on the owners’ personal income tax returns if corporate income is distributed to the shareholders as dividends. sole proprietorship — business entity that is owned and managed by one individual that has very little formal structure and no mandatory filing/registration with the state. for-profit business — business structure designed to create profits that are distributed to the owners.