Common Business Structures
Sole Proprietor
LLC (Limited Liability Company)
Sole Proprietor
The simplest structure—you're the business. No formal registration, but you carry all personal liability.
Best for: Freelancers, contractors, or side hustles with low risk.
Partnership
LLC (Limited Liability Company)
Sole Proprietor
The simplest structure—you're the business. No formal registration, but you carry all personal liability.
Best for: Freelancers, contractors, or side hustles with low risk.
LLC (Limited Liability Company)
LLC (Limited Liability Company)
LLC (Limited Liability Company)
A popular hybrid structure that protects your personal assets while keeping paperwork manageable.
Best for: Small businesses, startups, or solo entrepreneurs looking for legal protection..
S Corporation (S Corp)
S Corporation (S Corp)
LLC (Limited Liability Company)
Offers tax benefits by allowing profits to “pass through” to owners without self-employment tax. More rules, but great for saving on taxes.
Best for: Profitable businesses looking to reduce their tax burden.
C Corporation (C Corp)
S Corporation (S Corp)
C Corporation (C Corp)
A completely separate legal entity. Can raise capital, issue shares, and go public. More paperwork—but maximum scalability.
Best for: Startups, tech companies, or businesses planning to raise investor money.
Nonprofit Organization
S Corporation (S Corp)
C Corporation (C Corp)
Mission-based and tax-exempt (if approved). Must follow strict rules but offers funding and public service advantages.
Best for: Charitable, educational, religious, or public-purpose missions.
📊 Structure Comparison Chart
About LadderUp
Need Help Deciding?
- If you’re unsure where to start, LLC is the most flexible and protective for small business owners.
- You can always start simple and restructure as you grow.
- Choosing the right structure now helps you avoid tax and legal headaches later.