Business.NJ.gov | Choose a Business Structure

Every business owner must choose a business structure for their business to operate, register and pay taxes. There are several different types of business structures for you to choose from, each with implications for your taxes, personal liability, partnerships, and registration requirements. The below is not meant to be an exhaustive list of the different types of business structures, and is also not meant to act as legal or tax advice, but can serve as a starting point for your research.

Depending on their needs, many business owners also consult with an attorney. Some types of business structures are easier to set up than others. For instance, forming a sole proprietorship does not require you to file any formation documents (although a tax registration is still required), while for entities such as corporations and Limited Liability Companies, you will need to formally incorporate your company with the State. You may find more information at the US Small Business Administration website or the IRS website.