What legal entity you want to run your business under is mainly an asset protection and tax-related issue. Think about the ownership structure. Who are or will be the owners? What happens is someone leaves the business, wants to sell their ownership, or if other co-owners want to absorb a departing owner's portion, or if a part-owner becomes incapacitated or dies? etc. etc. There are serious potential estate planning and/or tax planning consequences. What is the likelihood of defending future claims from creditors, or potential lawsuits? Will this business be sold in the foreseeable future? Will this business continue for more than one generation as a family business? etc. Discuss these questions and issues with a business attorney and a CPA (accountant).