Choosing a business formation is one of the first legal decisions a business owner makes, and it affects far more than paperwork. It can shape who controls the business, who is personally responsible for debts, how taxes are reported, and how easy it is to bring in a new owner later. The right choice is not always the “most formal” option. A solo freelancer may start as a sole proprietor and later form an LLC. Two friends opening a small service business may need a partnershi