Publication 5868 — Starting a new business? Choose a

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/p5868.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

Starting a new business?¶

Choose a business structure¶

When starting a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file.

The most common forms of business are the sole proprietorship, partnership, corporation and S corporation. A limited liability company (LLC) is a business structure allowed by state statute.

Compare the general traits of these business structures, but remember that ownership rules, liability, taxes and filing requirements for each business structure can vary by state. The following table is only a guideline. Confer with a business tax specialist to confirm your specific business needs.

For more information with the Small Business Administration: Choose a business structure.

Publication 5868 (10-2023) Catalog Number 94402E Department of the Treasury Internal Revenue Service www.irs.gov

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