Law · Free tool
Business Entity Selector
Choosing between a sole proprietorship, a limited company and a corporation is one of the first structural calls a founder makes. This selector asks six plain questions about owners, share sales, personal liability, revenue scale, the kind of activity and any listing plans, then shows which form fits those answers best and which comes second. It is an orientation, not legal or tax advice.
- OutputA fit note, not a legal opinion
- No sign-up
- Copy or print the result
- How it works ↓
Your entries stay in this browser. Use Fill example to see a finished page first.
What this law tool gives you
The result names the closest fit and the runner-up, lists the reasons drawn from your answers, and shows a fit score for all three forms. A short tradeoffs section covers liability, investors and governance. Print it or copy it into the notes you bring to your first meeting with a lawyer and an accountant.
What you enter
- Number of owners: just me, 2 to 5 owners, or 6 or more
- Selling shares: no plan, possible with no date, or planned this year
- Separating personal assets: not a priority yet, important, or essential
- Expected annual revenue: modest (owner-scale), growing (a small team can live on it), or large (well beyond one team's wages)
- Activity: solo professional practice, selling goods or services, software or subscription, or holding more than one business
- Public listing: no, possible later, or that is the goal
Worked example
The built-in example is one owner, no plan to sell shares, separating personal assets marked important, modest revenue, a software or subscription business and no listing. The sole proprietorship scores 4 (3 + 1 − 2 + 2), the limited company 3 (2 + 1) and the corporation 0. The note names a sole proprietorship first, the limited company second, and suggests asking about a single-member limited company because asset separation matters.
How does the selector score each business structure?
Each form starts with a base score: limited company 2, sole proprietorship 0, corporation 0. Every answer then adds or subtracts points. One owner adds 3 to the sole proprietorship; 6 or more owners adds 3 to the corporation and takes 6 from the sole proprietorship. A share sale planned this year adds 4 to the corporation and takes 5 from the sole proprietorship. Making a listing the goal adds 5 to the corporation.
Wanting personal assets separated lowers the sole proprietorship score (by 2 if important, by 4 if essential) and raises the limited company, plus the corporation when it is essential. A modest revenue with one owner and no investors adds 2 to the sole proprietorship. The highest score wins; ties go to the limited company, then the corporation. The scores are internal weights, not probabilities or filing instructions.
Tips before you use the result
- If you marked personal asset separation as important and a sole proprietorship still wins, treat the single-member limited company as a serious second option before deciding.
- Answer the share-sale question for the next 12 months, not for a hoped-for future; a planned round this year changes the result far more than a vague possibility.
- The revenue options are a scale, not a legal threshold. What counts as large depends on the country where you file.
- Bring the printed note to a lawyer and an accountant licensed where you will register; minimum capital, director duties and tax treatment are local questions.
Frequently asked questions
Should I start as a sole proprietorship or an LLC?
It depends mainly on how many owners you have, whether you plan to sell shares and how much it matters to keep personal assets apart from business debts. A sole proprietorship offers no shield for personal assets. If that shield matters to you, a single-member limited company is usually the option to ask a local adviser about. The selector shows how those factors weigh together.
When does a corporation make more sense than a limited company?
In this tool the corporation rises when you plan to sell shares this year, have six or more owners, expect large revenue, hold more than one business, or plan a public listing. A corporation is the familiar shape for a priced round, an option pool and a listing, but it expects directors, shareholder decisions and more filings.
Is this business structure quiz legal advice?
No. It is an orientation based on six answers and fixed weights. It does not know your country, and local law decides the entity names, any minimum capital, tax and the filings required. Use the result to frame your questions, then confirm the choice with a lawyer and an accountant licensed where you will operate.
Do I need to create an account to save my answers?
No sign-up is needed. Your answers are kept in this browser on this device, so you can close the page and come back to the same selections later. Nothing is sent to a server. Use Clear to reset the form, or Fill example to see how a sample founder's answers are scored.
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This tool is an orientation and checklist aid, not legal advice. Results depend on the figures you enter; check them against your own records before you rely on them. Last updated: October 2026 · Kurums editorial team.