Structure selection is complex. Multiple scenarios. Multiple tradeoffs. Multiple options.
Most guides are static. They don’t adapt to your situation. They don’t show scenarios.
Structure selector shows scenarios. Different situations. Different tradeoffs. Different recommendations.
This guide walks through scenarios, tradeoffs, and recommended next steps.
Key Takeaways
- Explore scenarios—see different situations
- Understand tradeoffs—weigh pros and cons
- Get recommendations—see suggested structures
- Follow next steps—take action
- Make decision—choose your structure
Table of Contents
Scenario Exploration
Explore different scenarios. See how structure fits each.
Solo Founder Scenario
Solo founder starting business:
- One owner
- Simple operations
- Low risk
- Growth potential
Recommended structure: LLC for simplicity and protection.
Why this matters: Scenario exploration shows fit. If you explore scenarios, fit becomes clear.
Partnership Scenario
Multiple founders starting business:
- Multiple owners
- Shared responsibility
- Collaboration needed
- Growth plans
Recommended structure: LLC or Partnership depending on protection needs.
Why this matters: Scenario exploration shows options. If you explore scenarios, options become clear.
Growth-Focused Scenario
Business planning to raise capital:
- Investor interest
- Stock options needed
- Growth focus
- Scaling plans
Recommended structure: Corporation for investor structure.
Why this matters: Scenario exploration shows growth needs. If you explore scenarios, needs become clear.
Pro tip: Use our TAM SAM SOM Calculator to evaluate market opportunity and inform business structure decisions. Calculate market size to understand growth potential.
Tradeoff Analysis
Analyze tradeoffs. Understand pros and cons.
Simplicity vs. Protection
Tradeoff:
- Simplicity: Partnership is simplest
- Protection: LLC provides protection
- Balance: LLC balances both
Why this matters: Tradeoff analysis shows choices. If you analyze tradeoffs, choices become clear.
Cost vs. Benefits
Tradeoff:
- Cost: Partnership is cheapest
- Benefits: Corporation offers most benefits
- Balance: LLC offers good balance
Why this matters: Tradeoff analysis shows value. If you analyze tradeoffs, value becomes clear.
Flexibility vs. Structure
Tradeoff:
- Flexibility: LLC is flexible
- Structure: Corporation is structured
- Balance: Choose based on needs
Why this matters: Tradeoff analysis shows priorities. If you analyze tradeoffs, priorities become clear.
Recommendation Framework
Use framework to get recommendations.
Assess Your Situation
Evaluate your situation:
- Number of owners
- Growth plans
- Capital needs
- Risk tolerance
Why this matters: Situation assessment shows context. If you assess situation, context becomes clear.
Match to Structure
Match situation to structure:
- Solo + Simple = LLC
- Multiple + Growth = Corporation
- Multiple + Simple = Partnership or LLC
Why this matters: Structure matching creates fit. If you match structure, fit improves.
Get Recommendation
Receive structure recommendation:
- Based on assessment
- Matched to situation
- Considered tradeoffs
- Recommended structure
Why this matters: Recommendation enables decision. If you get recommendation, decision improves.
Next Steps Guide
Follow next steps after selection. Take action.
Immediate Steps
Take immediate steps:
- Choose structure
- Gather information
- Prepare documents
- Plan formation
Why this matters: Immediate steps enable action. If you take steps, action becomes possible.
Formation Steps
Complete formation steps:
- File paperwork
- Pay fees
- Obtain EIN
- Create agreements
Why this matters: Formation steps create business. If you complete steps, business is created.
Post-Formation Steps
Complete post-formation steps:
- Open bank account
- Update contracts
- Set up compliance
- Maintain records
Why this matters: Post-formation steps maintain business. If you complete steps, business maintains.
Decision Support
Get support for your decision. Make informed choice.
Decision Factors
Consider decision factors:
- Your situation
- Your goals
- Your resources
- Your timeline
Why this matters: Factor consideration enables decision. If you consider factors, decision improves.
Decision Confidence
Build decision confidence:
- Understand options
- Evaluate tradeoffs
- Get recommendations
- Make informed choice
Why this matters: Confidence enables action. If you build confidence, action becomes possible.
Pro tip: Use our TAM SAM SOM Calculator to evaluate market opportunity and inform business structure decisions. Calculate market size to understand growth potential.
Your Next Steps
Structure selector guides your decision. Explore scenarios, understand tradeoffs, get recommendations, follow next steps, then make decision to choose your structure.
This Week:
- Begin exploring scenarios using our TAM SAM SOM Calculator
- Start analyzing tradeoffs
- Begin getting recommendations
- Start planning next steps
This Month:
- Complete scenario exploration
- Make structure decision
- Begin formation process
- Complete post-formation steps
Going Forward:
- Continuously evaluate structure fit
- Consider changes as you grow
- Maintain compliance
- Optimize structure over time
Need help? Check out our TAM SAM SOM Calculator for market evaluation, our structure comparison guide for basics, our structure examples guide for examples, and our upgrade guide for transitions.
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Sources & Additional Information
This guide provides general information about business structure selection. Your specific situation may require different considerations.
For market size analysis, see our TAM SAM SOM Calculator.
Consult with professionals for advice specific to your situation.
