You’re about to start a business in the US. You have a great idea and a winning team. You’ve thought through your business plan. You’re ready to make it official—but before you can begin, you have to decide what kind of business entity makes the most sense for your new company.

There are several types of business entities and the one you choose determines how your business is regulated and taxed. Your choice of entity fundamentally boils down to a few key considerations:

• How profits are taxed
• The complexity and cost of setting up the business, as well as ongoing governance and administration
• Liability protection, particularly of an owner’s personal assets

While in some cases the choice can be obvious, it isn’t always. Each entity type offers a unique blend of legal and tax implications, and figuring out what’s right for a specific business can be complicated.

With more than 20 years of experience in accounting—including more than 14 years of providing CFO services to companies across multiple industries—I have advised numerous C corporations, S corporations, LLCs, and partnerships on tax and entity-choice matters. In this article, I’ll present the crucial points to keep in mind when you need to make this decision.

Note: This is a top-level guide and certain details may not apply to your specific business. Any final decisions should be made with the help of a tax or legal advisor.