Introduction

Choosing a legal structure for your business is a little bit like choosing your character in a video game: you usually have a few to choose from, and each has its strengths and weaknesses depending on the situation.

Your legal structure is a very important aspect of your business—it will impact almost every decision you make, from who you go into business with to how you find funding. Taking time to understand the business structures available to you and choosing the correct one can save you thousands of dollars per year, and ultimately decide whether your business succeeds or fails.

There are several business entity types to choose from, each with varying levels of personal liability, tax obligations, ownership rules, and administrative complexity. With this guide, we’ve made it as simple as possible for online merchants to choose the right option for their business.