The entrepreneurs I talk to are, without exception, smart, motivated, energetic people. They are full of ideas for life-changing products and services and plans for the future. But at some point, nearly all first-time business owners get stuck by a question: “What type of entity should my small business be?”
This may not be the most fun part of starting the business, but it shouldn’t be painful either. If terms like S corp, C corp, and sole proprietorship make your head spin, you’re definitely not alone.
This question is so common that I decided to put together an article to easily explain the different types of entities that work for most small businesses.