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Fill out our easy-to-use step-by-step guide with all of the information needed to form your LLC in your selected state. Save your progress as you go, and file when you’re ready.
Once you submit your order the rest is left to us. We'll handle all of the complicated documentation and filing so you don't have to.
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Learn about the most common business ownership structures below
Overview
A limited liability company is a business ownership structure that separates your personal affairs from your business affairs.
Benefits
When set up properly, an LLC shields your personal assets from being taken to pay business debts or claims against the business, like a corporation.
An LLC has fewer formalities than a corporation: no stock, no board of directors, and no required annual meetings.
An LLC has easy pass-through taxation (like a sole proprietorship or partnership), where profits and losses are passed through to the owners and taxed on their personal income tax returns.
Disadvantages
An LLC can’t sell shares to the public or issue stock options.
Overview
A sole proprietorship is a one-owner business that has not been registered as a limited liability company, corporation, or any other type of legal entity.
Benefits
For IRS purposes, the owner (sole proprietor) and the business are one tax entity, meaning that business profits are reported and taxed on the owner's personal tax return.
Disadvantages
The main downside of a sole proprietorship is that its owner is personally liable for all business debts. This means that the owner is at risk of losing personal assets, such as a house, if the business is sued.
Overview
A partnership is a legal structure for a business of two or more individuals.
Benefits
Partners have pass-through taxation, where profits and losses are passed through to each partner's personal income tax returns.
Disadvantages
Each owner (partner) is personally liable for all debts of the business, and any partner can bind the partnership (and thus the other partners) to a business deal or contract.
Overview
A corporation is a structure that allows a business to organize as a separate legal entity from its owners (shareholders).
Benefits
An advantage of incorporating is that shareholders are legally shielded from personal liability for the corporation's liabilities and debts.
Disadvantages
Corporations are required to follow formalities such as issuing shares of stock, appointing a board of directors, and holding annual meetings.
And because a corporation is a separate legal entity from its owners, the company itself is taxed on all profits that it can't deduct as business expenses (including money kept in the company and money paid out as dividends).
Overview
A limited liability company is a business ownership structure that separates your personal affairs from your business affairs.
Benefits
When set up properly, an LLC shields your personal assets from being taken to pay business debts or claims against the business, like a corporation.
An LLC has fewer formalities than a corporation: no stock, no board of directors, and no required annual meetings.
An LLC has easy pass-through taxation (like a sole proprietorship or partnership), where profits and losses are passed through to the owners and taxed on their personal income tax returns.
Disadvantages
An LLC can’t sell shares to the public or issue stock options.
Overview
A sole proprietorship is a one-owner business that has not been registered as a limited liability company, corporation, or any other type of legal entity.
Benefits
For IRS purposes, the owner (sole proprietor) and the business are one tax entity, meaning that business profits are reported and taxed on the owner's personal tax return.
Disadvantages
The main downside of a sole proprietorship is that its owner is personally liable for all business debts. This means that the owner is at risk of losing personal assets, such as a house, if the business is sued.
Overview
A partnership is a legal structure for a business of two or more individuals.
Benefits
Partners have pass-through taxation, where profits and losses are passed through to each partner's personal income tax returns.
Disadvantages
Each owner (partner) is personally liable for all debts of the business, and any partner can bind the partnership (and thus the other partners) to a business deal or contract.
Overview
A corporation is a structure that allows a business to organize as a separate legal entity from its owners (shareholders).
Benefits
An advantage of incorporating is that shareholders are legally shielded from personal liability for the corporation's liabilities and debts.
Disadvantages
Corporations are required to follow formalities such as issuing shares of stock, appointing a board of directors, and holding annual meetings.
And because a corporation is a separate legal entity from its owners, the company itself is taxed on all profits that it can't deduct as business expenses (including money kept in the company and money paid out as dividends).
