Many new business owners pick the wrong structure out of confusion. This guide helps you choose wisely early on.
Entity Choice Matters More Than You Think
When launching a business, the legal structure you choose—LLC, corporation, sole proprietorship—impacts taxes, liability, growth, and flexibility. Many startups regret picking too simplistic a structure too late.
Good for solo ventures with minimal risk. It’s easy, low cost, but gives zero liability protection. Profits and losses go on your personal tax return.
One of the most popular for new businesses. Protects your personal assets, allows tax flexibility (pass-through or corporate), and is relatively simple to maintain.
Best when you want investors or plan to issue stock. S‑Corp gives you pass-through taxation (with restrictions). C‑Corp gives more scalability but has double-tax risk.
Once you choose your structure, you’ll need to maintain legal formalities, record keeping, and tax filings. Choose tools that help you stay compliant. And use your POS to keep clean, structured books from day one — M&M POS helps with record keeping, revenues, tax reporting, and clean audits.
Don’t treat your business structure as a checkbox. Choose intentionally, understand trade-offs, and adjust if your business evolves. Getting structure right early gives you flexibility and avoids costly reorganizations later.