Business Formation

Set up your business the right way, once

Choosing the right structure and filing it correctly the first time avoids expensive fixes later.

Who this is for

Anyone starting a business who wants to understand their structure, not just click through a template service.

What you'll do

  • Compare LLC, S-corp, and sole proprietorship for your actual situation
  • Prepare formation documents for your state
  • Understand your ongoing compliance and tax obligations
  • Get your EIN, operating agreement, and required registrations in order
  • Know when your situation (co-founders, investors) needs a real business attorney

Why not just hire someone?

Business formation attorneys commonly charge $500-$2,000 for work that's often template-driven once you understand your options.

Frequently asked questions

Should I form an LLC or an S-corp?

An LLC is typically simpler to set up and maintain, while an S-corp election can reduce self-employment tax once profits reach a meaningful level - the right choice depends on your expected income and how you plan to pay yourself.

Do I need a lawyer to start an LLC?

No - LLC formation is largely a state filing process that most people can complete themselves once they understand the required documents. Bringing in a lawyer tends to matter more once co-founders, investors, or complex agreements are involved.

What's the difference between an EIN and a business license?

An EIN is a federal tax ID number for your business, free to obtain directly from the IRS. A business license is a separate local or state authorization to operate, and requirements vary by location and industry.

When does a business need a formal operating agreement?

Even single-owner LLCs benefit from one, but it becomes essential once there's more than one owner - it's what governs ownership splits, decision-making, and what happens if a co-founder leaves.

Read the full business formation guide on 3Stone AI