The right entity depends on your goals, number of owners, growth plans, and tax situation. Many small businesses start with an LLC for flexibility, but it all depends on your situation.

You can operate under your own name as a sole proprietor, but you and the business are legally the same, so business debts and lawsuits can reach your personal assets. An LLC creates a separate legal entity that can help shield your personal property if run properly.

After formation, you should obtain an EIN, open a separate business bank account, adopt an operating agreement or bylaws, and document key decisions in written resolutions or minutes. You also need to track annual report deadlines and any required licenses so the entity stays in good standing.

A registered agent is the person or company designated to receive legal papers and official notices for your business. Most states require every LLC and corporation to have a registered agent with a physical address in that state.

An operating agreement (for an LLC) or bylaws (for a corporation) set the rules for how the business is owned and managed—who makes decisions, how profits are shared, and what happens if someone leaves. Even for single‑owner businesses, these documents help avoid disputes, support liability protection, and are often requested by banks and investors