Opening a small business is amazing and wonderful and completely frightening and scary. You’re doing something that a whole bunch of people have done or also doing, but you’re also doing something that a lot of people fail at. Luckily, though, a ton of people succeed at running small businesses, something proven just by the numbers of people employed by them.
The reason for that is probably because the definition of a small business is pretty broad. In fact, if you employ yourself you’re a small business. If you’re a company that employs 500 people, then you’re also considered a small business.
How you structure your business affects a whole range of things, including protecting yourself and how you pay taxes. They also are probably something you want to choose based on number of employees or transition plan. What do all those inputs look like? This graphic explains them in detail.