Business Structure & Registration: LLC, S-Corp, and Business Formation
Your business structure determines your liability, taxes, and fundraising ability. Learn how to choose between LLC, S-Corp, C-Corp, and sole proprietorship.
The business structure you choose is one of the most consequential decisions you'll make — it determines your personal liability, how you're taxed, and your ability to raise capital. Choose wrong, and you could be paying thousands in unnecessary taxes or exposing your personal assets to business creditors.
Sole proprietorship is the default for single-owner businesses — simple, no registration required, but zero liability protection. LLC (Limited Liability Company) is the most popular structure for small businesses — it separates personal and business assets, offers pass-through taxation, and is flexible and inexpensive to form.
S-Corporation is a tax election for LLCs or corporations that can save significant self-employment taxes once your business generates $60,000+ in profit. You pay yourself a reasonable salary (subject to payroll taxes) and take remaining profits as distributions (not subject to self-employment tax). C-Corporation is the structure for venture-backed startups planning to raise institutional capital or go public.
The registration process: choose a business name and check availability with your state's Secretary of State, file Articles of Organization (LLC) or Articles of Incorporation (Corp), obtain an EIN from the IRS, create an Operating Agreement (LLC) or Bylaws (Corp), and open a dedicated business bank account.
Ready to choose the right business structure and register your enterprise properly from day one? Start your 7-day free trial with Rapha Credit Repair and access the full Faith Academy curriculum. No credit card inquiry required.
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