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Step 1 of 5
Step 1 — Entity Type

What type of business?

Your entity type determines operating agreement structure, tax treatment, and compliance requirements.

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LLC
Limited Liability Company. Pass-through taxation, flexible management, liability protection.
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S-Corp
S Corporation. Salary + distribution split, payroll tax savings above ~$50K profit.
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Sole Proprietorship
Simplest structure. No separate entity. Personal liability. Schedule C reporting.
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Partnership
General or Limited Partnership. Multiple owners, pass-through, K-1 reporting.
Step 2 — Jurisdiction

What state are you forming in?

State law governs formation filings, annual reports, franchise taxes, and compliance deadlines.

Step 3 — Ownership

Single or multi-member?

This affects your operating agreement complexity, tax elections, and management structure.

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Single Member
One owner. Disregarded entity for tax (unless S-Corp elected). Simpler operating agreement.
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Multi-Member
Two or more owners. Partnership tax return (Form 1065). Capital accounts and distribution rules required.
Step 4 — Industry

What industry?

Industry determines insurance requirements, licensing, and compliance-specific prompts.

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Services
Professional services, freelancing, consulting, agencies.
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E-commerce
Online retail, dropshipping, marketplaces, physical products.
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SaaS
Software as a service, apps, platforms, digital tools.
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Consulting
Management, strategy, IT, financial, or specialty consulting.
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Other
Construction, healthcare, food, real estate, or other industry.
Step 5 — Scale

Annual revenue estimate?

Revenue tier affects accounting complexity, tax strategy, and insurance coverage levels.

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Under $100K
Early stage or side business. Simplified bookkeeping. Quarterly estimated taxes.
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$100K – $500K
Growing business. Professional bookkeeping recommended. S-Corp election may save payroll tax.
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$500K+
Established business. Full accounting system needed. Complex tax strategy. Higher insurance limits.
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Your Business Setup Pack

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