From the course: 20 Questions to Help You Start a Business

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What is the type of entity that you want to form?

What is the type of entity that you want to form?

From the course: 20 Questions to Help You Start a Business

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What is the type of entity that you want to form?

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- This question is always near the top of the list for anyone starting a business. What is the type of entity that you want to form? The answer can be really easy. You might not need any entity at all. If you start a business with no partners and your own money, then you can probably just file a fictitious business name or DBA, and operate the business without any entity. But if you have others involved, you may need to form a corporation or an LLC. That's short for a limited liability company. Both are very common ways to go. Both let you share ownership with other people. And those entities can also shield against liabilities. Here's a snapshot of the entities to help guide you. If you're an individual with no partners, you can have no entity, or you can choose to form an LLC with you as the only member. If you do this, you'll have no separate tax filing, and you'll state your income and expenses on your 1040 Schedule C on…

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