Choose a business structure. The business structure you choose influences everything from day-to-day operations, to taxes, to how much of your personal assets are at risk. You should choose a business structure that gives you the right balance of legal protections and benefits. The right structure -- corporation, LLC, partnership, or sole proprietorship -- depends on who will own your business and what its activities will be. When you start a business, you must decide whether it will be a sole proprietorship, partnership, corporation, or limited liability company (LLC). 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. Legal and tax considerations enter into selecting a business structure.