Business Formation Guide
What Entity Should
Your Business Be?
Answer 7 questions and get a recommendation across all 9 entity types — Sole Prop, Partnership, LP, LLP, LLC, S-Corp, C-Corp, Nonprofit & Cooperative.
What is the primary purpose of this venture?
This is the single most important filter for entity type.
How many owners, founders, or members does this have?
Some structures require multiple owners; others are solo-only.
Do you want personal liability protection from business debts and lawsuits?
Without it, personal assets like your home and savings could be at risk.
Are you planning to raise outside investment or issue equity to shareholders?
Certain investors and stock structures require a specific entity.
How do you want business profits taxed?
Often the deciding factor between LLC, S-Corp, and C-Corp.
How much administrative complexity are you prepared to handle?
Corporations and nonprofits require the most ongoing compliance.
What is the long-term vision for this venture?
Your exit strategy and scale goals shape the ideal structure today.
Explore All 9 Entity Types
Tap any entity for a full breakdown — even ones outside your recommendation.
Business Foundation Resources
Get the Credentials
Your Business Needs
Three essential steps every business should complete — explained clearly, with direct links to get started for free.
Business Credit
What is a D-U-N-S® Number and How Do I Get One?
✓ Free to obtain
Issued by Dun & Bradstreet
9-digit identifier
Required for federal contracts
A D-U-N-S® Number (Data Universal Numbering System) is a unique 9-digit identifier assigned to your business by Dun & Bradstreet (D&B). Think of it as a Social Security number for your business — it anchors your business credit profile and is required for federal contracts, SBA loans, and many vendor applications.
A DUNS number unlocks critical business infrastructure. Without one, you may be invisible to lenders, suppliers, and government agencies that rely on D&B's database to verify business legitimacy.
- Federal contracts & grants — Required by SAM.gov to bid on U.S. government contracts
- Business credit building — D&B's Paydex score (0–100) is built on your DUNS record
- Vendor applications — Many wholesalers and suppliers verify DUNS before extending net terms
- SBA loans — Lenders reference D&B data during underwriting
- Corporate partnerships — Large corporations may require it before doing B2B business with you
Getting a DUNS number is free and straightforward through D&B's official portal.
- Go to dnb.com/duns-number/get-a-duns.html — use only the official D&B site to avoid third-party fees
- Click "Get a D-U-N-S Number" and select your country (United States)
- Search for your business to see if a record already exists
- If none exists, complete the registration form with your legal business name, address, EIN, and contact info
- Standard processing takes up to 30 business days (free). Expedited processing (1–5 days) is available for a fee
- Your DUNS number will be emailed to you once assigned
Pro Tip: Once you have your DUNS, start paying vendors and suppliers on time — every on-time payment is reported to D&B and builds your Paydex score, which ranges from 0 to 100. A score of 80+ is considered excellent.
These are two completely different identifiers that serve different purposes — and your business needs both.
- EIN (Employer Identification Number) — Issued by the IRS. Used for federal tax filings, opening bank accounts, and hiring employees
- DUNS Number — Issued by Dun & Bradstreet (a private company). Used to build business credit, apply for government contracts, and establish vendor credibility
- Your EIN is required before applying for a DUNS number
- Neither replaces the other — think of the EIN as your tax ID and DUNS as your credit ID
Tax ID / IRS
How Do I Get an EIN — and Is It Really Free?
✓ 100% Free from IRS
Issued instantly online
Required for LLCs & Corps
Needed to open business bank account
An EIN (Employer Identification Number), also called a Federal Tax Identification Number, is a free 9-digit number issued by the IRS. It's the business equivalent of a Social Security number and is required to open a business bank account, hire employees, file taxes as an entity, and apply for business credit.
You are required to have an EIN if any of the following apply:
- You operate as an LLC, S-Corp, C-Corp, Partnership, or Nonprofit
- You have or plan to hire employees
- You file excise tax returns (alcohol, tobacco, firearms, etc.)
- You withhold taxes on income paid to a non-resident alien
- You have a Keogh plan or certain retirement accounts
Sole Proprietors: You can use your Social Security number instead, but many experts recommend getting an EIN anyway to separate personal and business identity, reduce identity theft risk, and build a business credit profile.
The IRS provides EINs free of charge. Never pay a third party for an EIN — it is always free directly from the IRS.
- Go to irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- Click "Apply Online Now" — the online system is available Mon–Fri, 7 a.m. to 10 p.m. ET
- Select your entity type (LLC, Corporation, Sole Proprietor, Partnership, etc.)
- Answer questions about your business purpose, state of formation, and responsible party
- The IRS validates your information and issues your EIN immediately upon completion
- Download and save your EIN confirmation letter (CP 575) — you'll need it often
Alternative methods: You can also apply by fax (Form SS-4, ~4 business days), mail (~4 weeks), or phone for international applicants. Online is the fastest and recommended method.
Your EIN is foundational — nearly every significant business action requires it.
- Open a business bank account — required by virtually all banks and credit unions
- Apply for business credit cards — build credit without using your personal SSN
- Hire employees — required for payroll tax withholding and W-2 filings
- File business taxes — LLCs, Corps, and Partnerships file under the EIN
- Apply for business licenses — many states require it for licensing
- Apply for a DUNS number — D&B requests your EIN during registration
- Apply for SBA loans or grants — lenders use EIN to pull business financial records
Free Support
Where Can I Find Free or Low-Cost Business Advisors Near Me?
✓ Mostly free
Federally funded programs
Available in every state
In-person & virtual
You don't have to figure business out alone — and you shouldn't have to pay a consultant thousands of dollars to get started. Several federally funded and nonprofit programs offer free or very low-cost advising, mentorship, training, and financing support to entrepreneurs at every stage.
Find an Advisor Near You
SCORE Mentors
Free mentoring from retired executives. 10,000+ volunteers nationwide.
SBDC Locator
SBA-funded Small Business Development Centers in every state.
Women's Business Centers
Free advising and training specifically for women entrepreneurs.
MBDA Business Centers
Minority Business Development Agency — contracts, capital & markets.
Veteran Business Centers
VBOCs provide free advising and training to veteran entrepreneurs.
SBA Local Assistance
Find all SBA-funded local resources by ZIP code in one place.
SCORE is a nonprofit partner of the SBA with over 10,000 volunteer mentors across all 50 states. Mentors are retired or active business executives and entrepreneurs who provide free, confidential advice.
- Cost: Always free — in-person, phone, or video sessions
- Help with business plans, financial projections, and marketing strategy
- Industry-specific mentors available in most major metros
- Also offers free workshops, webinars, and templates
- No income limit or business stage requirement to participate
Best for: New business owners who want ongoing, personalized guidance from someone who has "been there."
SBDCs are co-funded by the SBA and host institutions (universities, chambers of commerce). There are nearly 1,000 SBDC locations across the U.S. providing free advising and low-cost training.
- Cost: Advising is free; some workshops charge a nominal fee
- Help with business plans, access to capital, and government contracting
- Many offer specialized services for international trade, technology, and manufacturing
- Advisors are typically full-time, paid professionals (not volunteers)
- Often have relationships with local lenders and SBA loan programs
Best for: Businesses ready to grow, seek funding, or pursue government contracts — SBDCs have deep technical expertise.
The MBDA is a federal agency within the U.S. Department of Commerce that specifically serves minority-owned businesses. It operates Business Centers in cities across the country.
- Free consulting on access to capital, contracts, and market development
- Help identifying and pursuing federal, state, and local procurement opportunities
- Connections to corporate supplier diversity programs
- Export development and global market access support
- Strategic advisory for scaling minority-owned enterprises
Best for: Minority-owned businesses seeking to land contracts, access capital, or grow into new markets.
Beyond the major programs, several other resources offer free or subsidized support:
- Women's Business Centers (WBC) — SBA-funded centers offering free training and mentoring specifically for women entrepreneurs, including those in low-income communities
- Veteran Business Outreach Centers (VBOC) — Free business training, counseling, and referrals for veteran, service-member, and military spouse entrepreneurs
- USDA Rural Development — Free technical assistance and grant programs for businesses in rural areas
- Local Chamber of Commerce — Many offer low-cost workshops, peer networks, and referrals to local advisors
- Community Development Financial Institutions (CDFIs) — Nonprofit lenders offering below-market loans and free financial coaching to underserved businesses