Choose the Right Business Structure

You and your business must have credibility in order to build business credit. This requires registering your business as a formal business entity, such as a limited liability company (LLC) or a corporation.

A limited liability company (LLC) is a business structure that offers the benefit of limited liability protection and flexible tax options. For most new business owners, the best option is to form an LLC in the state where you live and plan to do business in. If your business will have a physical presence (storefronts, offices, sales reps, etc.) in different states, you’ll need to register a foreign LLC in those states.