Business Structure

How to Choose the Right Business Entity

Selecting the right business structure is critical to the long-term success of your company. LegalShield makes the process quick and painless. 

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The Most Common Business Structures

Step one is to familiarize yourself with the most common types of business structures.

Sole Proprietorship: If you start conducting business and don’t file for another entity type, you’re considered a sole proprietor. Sole proprietorships offer virtually no legal liability protection.

Limited Liability Company (LLC): An LLC protects your personal assets from business debt, offers simplicity in management and flexibility in taxation. They are a great choice for many businesses.

C Corporation: C Corps offer the strongest protection from personal liability but are more complex to set up and manage. Also, C Corps are subject to double taxation in certain situations.

S Corporation: S Corps combine the formality and protection of C Corps with the flexibility and pass through taxation of LLCs, which allows you to avoid the double taxation of C Corps.

Entity selection requires you to consider critical tax and legal factors that will impact your business over the long term. Set yourself up for success by getting legal help. Launch by LegalShield begins with a business questionnaire and a consultation with a local lawyer to ensure you make the right decision.

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Understand the Factors that Should Drive Your Decision

There are a variety of factors that make one entity more appropriate for your situation than others. Here is a list of key considerations.

  • What are your business aspirations? Small side business or growing a larger organization?
  • Do you plan to hire employees?
  • Are you planning to raise money?
  • Is your business at low or high risk for being sued?
  • Do you plan to have partners? Need to have shareholders?
  • What is the best structure for taxes given the nature of your business and projected revenues?
  • Do you have significant personal assets, like a home or retirement account, to protect?

When you join Launch by LegalShield, your lawyer will take the time to discuss the various factors that make one business entity a better fit for your needs than another type. Don’t stress and guess. Legalshield is here to guide you through the entire entity selection and launch process for a one time fee of $145 + state filing fees.

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Get Legal Help for All Your Business Launch Needs

Once you’ve selected your entity type, you’ll need to make sure your business name is available, prepare and file Articles of Organization/Incorporation and secure an EIN. All of these tasks are handled by your lawyer as standard benefits of Launch by Legalshield.

Once you have legally formed your business entity, there will be a stream of additional tasks to complete and legal questions you may have. Do you need to apply for a general business license? Are you required to secure any special permits or sales tax licenses? Do you need help drafting and negotiating lease agreements, employment contracts or setting up financing terms with vendors?

Launch by LegalShield includes three months of our small business legal plan to help with any and all business legal needs. Your lawyer is available for consultation, document review and will even make phone calls or write letters for no additional cost.

Start your business today with LegalShield and know that your legal entity has been formed correctly and that you have the ongoing legal support you need to grow a successful company.

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See What Our Customers Say

  • My experience with LegalShield has been awesome and I could not be happier about my decision years ago to become a member. The process to get my LLC launched was seamless and extremely easy. They treated me with utmost respect and dignity throughout the process as well as keeping me informed of the status of my launch process. A heartfelt thank you for helping me make a lifelong dream of becoming a business owner come true.
    Dimitri V.
    Arizona Member
    My experience with LegalShield has been awesome and I could not be happier..
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    I am a new member to LegalShield and I am in the process of starting to sell and create my own LLC.
    I called my Provider Law Firm in Atlanta and the have been fantastic! So far, I have wills for my wife and self in process and signed up for Launch LegalShield Small Business to get my LLC filed.
    Attorney gave me options and I chose to utilize them... they had my business filed within 4 hours same day!!! They have been fantastic...
    Georgia Member
    I am a new member to LegalShield and I am in the process of starting to sel..
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    Best experience I have ever had with any of the law firms in 15 yrs of being a member and associate. They went above and beyond the norm to give me the details necessary to setup my LLC. Keep up the great work and we will hit 10% market penetration.
    Rosanne G.
    Texas Member
    Best experience I have ever had with any of the law firms in 15 yrs of bein..
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How LegalShield Works

Finding solutions to your legal issues doesn’t have to be stressful, complicated or expensive.

LegalShield puts the power of legal representation within reach of any individual, family or business. We work hard to make it easy, simple and affordable to get the legal help you need, when you need it.