Successful business owners agree that every company needs to have a legal structure that provides limited liability protection. However, choosing between the most common options - S corp, C corp and LLC - can still seem daunting. 

Here are five tips for choosing the business structure that’s right for you.

View a Side-by-Side Comparison
Limited Liability companies (LLCs), s corporations and c corporations are the most common legal structures to consider, but its helpful to know the basics about all structures. The first step in choosing the right legal structure is knowing important differences that can influence your choice. One of the best tools for comparing entities at a high level is a good side-by-side business entity comparison chart. Learning how different legal structures are managed, taxed, and organized can helps identify the entity types to consider.  

Attend a Webinar
A good webinar on choosing a business structure describes the benefits of each structure you’re considering. It talks about advantages, disadvantages, taxation and day-to-day operations. In a few minutes, you’ll gain insights that will lead you closer to choosing the right structure for your business.

Formation Assistant
There are a few automated tools that aid in selecting a legal structure. Among these is the Formation assistant from BizFilings. Tools like the assistant ask you questions about how you envision the organization, day-to-day activities and future of your business. Based on your responses, it

Talk to an Accountant
After you know the basics about each structure you’re considering, talk to your accountant. Based on your plans for running, growing and operating the business, your accountant may identify the best legal structure for your business from a tax perspective. 

Talk to an Attorney
It’s best to talk to an attorney after you already know the basics about legal structures, have consulted your accountant and have narrowed down the options.  This way, you’re paying to be advised — rather than educated.  Ask their opinion on legal structure for your business based on your company’s ownership, liability and day-to-day operations. 

Warning: It’s commonplace for accountants and CPAs to have different recommendations. In these instances, the choice is up to you as the business owner. You’ll need to determine the most compelling reasons and select the legal structure that you believe is warranted. 

Since your business can thrive equally well as a c corp, s corp, or llc and retain the benefits of limited liability protection, there’s no indisputably right or wrong answer — just trade offs. Ultimately, The only mistake is not using a legal structure that provides limited liability protection at all.

Want to learn more about the advantages of each type of structure? Visit business incorporation services leader BizFilings today.  By offering a free webinar on ‘choosing a business structure’ and a “formation assistant” that walks you through important considerations, it’s a great place to gather valuable information.