1
What is my liability exposure?
If meaningful, you need protection. Sole proprietorships and general partnerships leave you personally exposed.
2
What are my tax obligations and advantages?
Pass-through vs. separate entity? SE tax implications? A CPA can model the real difference for your situation.
3
What is my funding strategy?
Grants/donations → Nonprofit.
Savings/loans → LLC or S Corp.
Outside investors → S Corp or C Corp.
Foundation capital → L3C.
4
Does this structure honor and protect my mission?
For faith-based entrepreneurs especially: your legal form is a statement of purpose. Choose a structure that positions you to lead with integrity and sustain what you're building.
Your legal form is a statement of purpose.
The structure you choose communicates your values, determines your accountability, and shapes your capacity to fulfill your mission. Choose intentionally.
Funding Strategy at a Glance
| Funding Source | Recommended Structure |
|---|---|
| Grants & tax-deductible donations | Nonprofit Corporation — 501(c)(3) |
| Personal savings or bank loans | LLC or S Corporation |
| Outside equity investors | S Corporation or C Corporation |
| Foundation program-related investments | L3C |
| Mission + market (values codified) | Benefit Corporation |