Sole proprietorship: A sole proprietorship is a business that is owned and run by one person. With this type of business, you are not required to register your business. As a sole proprietor, your legal business name defaults to your name unless you file for a Doing Business As (DBA). A DBA allows you to register a business name for free, which can provide some separation between you and your business.
Limited Liability Company (LLC): Registering your business as an LLC or a corporation gives you legal separation from your business. It also makes it easier to raise capital because you are seen as a lower-risk borrower. However, there is a lot more paperwork and registration required, so you may want to focus on operating as a sole proprietor first. If you are interested in registering your business as an LLC, contact your state Bureau, Secretary of State, or Business agency to find requirements and costs.
Corporation: A corporation is similar to an LLC in that they both are separate entities from their owners. An LLC is owned by one or more individuals, whereas a corporation is owned by shareholders. A corporation provides a lot of legal protection to its owners from personal liability but, operating a corporation requires extensive record-keeping and reporting.