Which entity type is right for you?
Five questions about your business and goals. We recommend an LLC, Corporation, S-Corp election, Sole Proprietorship, or Nonprofit based on your answers, plus the reasoning so you can verify.
Three things that make Entity type quiz useful in the real world.
Not a calculator that ships you to a paywall after the result.
Six questions, real answer
Investor goals, tax preference, state, residency. Output is a defensible recommendation.
Comparison cards inline
Side-by-side breakdown of every entity that fits, with the trade-offs flagged.
One-click to file
When the quiz returns LLC or C-Corp, the form is pre-filled. Pick your state and go.
What is the primary purpose of your business?
How many owners will the business have?
Do you plan to raise venture capital?
What annual profit do you expect (year 1-3)?
How important is liability protection?
A decision tree, not a sales funnel.
The quiz applies a simple decision tree based on the four factors that actually matter for entity selection: purpose (for-profit vs nonprofit), number of owners, plans for outside funding, and expected profit level.
Sole Proprietorship is recommended only when you have no liability exposure and want absolute simplicity. Most situations get an LLC recommendation because the cost is small and the protection is large.
LLC is recommended for most for-profit businesses without VC plans. Pass-through tax, liability shield, simple governance.
S-Corp election is recommended (as an addition to LLC or Corp) when profit crosses ~$60-80k for a closely-held US business. Run our S-Corp savings calculator for specific numbers.
C-Corp (Delaware) is recommended when you plan to raise venture capital, want to grant ISOs to employees, or want QSBS Section 1202 capital gains treatment.
Nonprofit is recommended only when the primary purpose is charitable, religious, educational, or otherwise public-benefit, and you accept that there are no owners.
On the $129/yr Compliance Annual Filings plan, we cover state late fees.
When you autofile your annual report through the $129/yr plan and we miss the deadline, we pay the state's late fee. The guarantee applies to that specific plan and the filings it includes. Other File.Business services are billed at the prices on this page.