Like your body has a skeleton, every business must have a structure to support it. You must select one of the available four structures that the State of Indiana offers. These include:
B, C, or S Corporation
Limited Liability Company/ Partnership
The selection of this structure must be made with care, for the structure you choose will determine how much liability you will be exposed to, how much in taxes you may have to pay, how much control of the organization you may have, etc. It is highly recommended that you enlist an attorney to aid you in determining which structure is right for you. Before you form your business, keep in mind the importance of the role a knowledgeable attorney will play.
In summary, the following eight questions need to be answered when picking a legal entity:
1. What is the size of the risk? That is, what is the amount of the investors' liability for debts and taxes?
2. What would the continuity (life) of the firm be if something happened to the principal or principals?