Starting your own business? Congratulations! One of the first and most important decisions you’ll need to make is choosing the right business structure. Your choice will affect how you pay taxes, how you pay yourself, and how protected your personal assets are.
At SmallBizMaven, a trusted small business consulting firm based in Oakland and serving the greater Bay Area, we help service-based entrepreneurs lay the right foundation from day one. This guide simplifies your options and helps you make an informed choice.
Sole Proprietorship: Easy Start, More Risk
A sole proprietorship is the simplest way to start a business. If you haven’t registered anything formally, you’re probably operating as one.
- Taxes: All business income is reported on your personal tax return. You pay self-employment taxes on all profits.
- Payroll: You can pay employees, but not yourself through payroll.
- Best for: Testing a business idea with low risk and low complexity.
LLC (Limited Liability Company): Flexible & Protected
An LLC protects your personal assets and keeps your setup simple. You can have a single-member LLC or partner with others.
- Single-Member LLCs: Still report income on your personal return, but with liability protection.
- Multi-Member LLCs: Require a separate tax return. Partners get distributions or guaranteed payments.
- Best for: Entrepreneurs who want protection without the hassle of a corporation.
As a small business consulting firm, we often recommend LLCs to solo entrepreneurs and small teams ready to grow with confidence.
S-Corporation: Smart Move for Profits
Once your business is making solid, consistent profits, an S-Corp might help you save on taxes.
- Taxes: You must pay yourself a reasonable salary and take remaining profit as distributions (not subject to self-employment tax).
- Compliance: Requires payroll and separate tax filings.
- Best for: Business owners making $75K+ in net profit per year.
Our team helps many Bay Area businesses make the S-Corp election at just the right time.
C-Corporation: Built to Scale
C-Corps are more complex, but they offer advantages if you’re planning to raise capital or expand significantly.
- Taxes: The company pays taxes on its profits. Shareholders pay taxes again on dividends.
- Best for: Entrepreneurs planning to grow fast, bring in investors, or build a national brand.
We guide founders through C-Corp setup when it aligns with their growth strategy.
10 More Things New Business Owners Need Help With
Choosing your entity is just the beginning. Most entrepreneurs also need help with:
- Business Licensing & Compliance
- Banking & Financial Setup
- Bookkeeping & Accounting Systems
- Taxes & Estimated Payments
- Hiring & Payroll Compliance
- Business Insurance
- Cash Flow Planning
- Workflow Systems & SOPs
- Branding & Online Presence
- Knowing What to Delegate
SmallBizMaven provides step-by-step support across all these areas so you can grow with confidence, not chaos.
Why Work with SmallBizMaven?
As a local small business consulting firm in Oakland, we bring hands-on experience, structure, and calm to what can feel like a confusing time. Blythe, founder of SmallBizMaven, offers practical coaching with zero judgment and total support. Whether you need help registering a business, setting up QuickBooks, or getting your financial systems running smoothly, we’re here for it.
We specialize in helping:
- New entrepreneurs who want to do things right from the start
- Service-based businesses in growth mode
- Small teams that need scalable financial systems
Let’s Get Your Business Set Up for Success
If you’re starting or restructuring a business in Oakland, Berkeley, San Francisco, or anywhere in the Bay Area, SmallBizMaven can help you:
✅ Choose the best legal structure
✅ Stay compliant and organized
✅ Create clean, scalable financial systems
Book your Business Setup Consultation and move forward with clarity and confidence.
📍 Proudly based in Oakland, CA, serving entrepreneurs across the Bay Area.
🌐 Visit: smallbizmaven.com
📅 Schedule: smallbizmaven.com/schedule
Disclaimer: This content is for educational purposes only. Please consult with a tax advisor or legal professional before making financial decisions.
