Free tool · 6 questions · about 1 minute
Which business entity is right for you?
LLC, S-Corp or C-Corp? Answer six quick questions and get a plain-English suggestion with the reasons behind it. No sign-up, and your answers never leave your browser.
Question 1 of 6
This quiz gives a general starting point based on common US rules, not legal or tax advice. Incofile is not a law firm or accounting firm; confirm your choice with a qualified professional.
Business entity quiz — frequently asked questions
What is the best business entity for a small business?
For most new small businesses an LLC is the simplest choice: it protects your personal assets, costs little to run and is taxed like a sole proprietorship or partnership by default. Founders planning to raise venture capital usually choose a C-Corporation instead.
When should an LLC be taxed as an S-Corp?
Usually once the business makes a steady profit well above a reasonable salary for the owner. The S-Corp election can reduce self-employment tax, but it adds payroll and a separate tax return, so it only pays off at higher profit levels.
Can a non-US resident own an S-Corp?
No. The IRS does not allow nonresident alien shareholders in an S corporation. Non-US owners usually form an LLC, or a C-Corporation if they plan to raise investment.
Is this quiz legal or tax advice?
No. It gives a general starting point based on common rules. Your situation may be different, so confirm the choice with a qualified accountant or attorney.