Wrong entity choice costs founders $10,000–$40,000 in unnecessary taxes within 3 years

Entity formation done right. LLC, S-Corp, or C-Corp — with the operating agreement to match.

Describe your business. Get the right entity recommendation, tax election strategy, operating agreement key clauses, state filing checklist, and annual compliance calendar — in 20 minutes.

Forge my LLC — $99→

93% of small businesses that incorporate as C-Corps should have chosen LLC or S-Corp. The difference is $10K–$40K in avoidable taxes over 3 years.

Part of the AEQUARA Suite · 42 AI tools · Not legal/financial advice

$10K+
avg tax overpayment from wrong entity choice (3-yr)
20 min
to complete entity formation guidance
93%
of businesses initially choose the wrong structure

Every formation decision, made correctly from day one

🏗️

Entity Recommendation

LLC vs. S-Corp vs. C-Corp vs. Partnership — calibrated to your business type, ownership structure, fundraising plans, and profit level. The right structure from the start saves years of restructuring.

📋

Operating Agreement

Key clauses for your operating agreement: membership percentages, voting rights, profit distributions, buyout provisions, dissolution terms. Written for your state and ownership structure.

🗓️

State Filing Checklist

Step-by-step state filing checklist with exact costs, timeline, and required documents. Every state has different requirements, fees, and timelines — mapped specifically for your state.

💰

Tax Election Strategy

S-Corp election timing (Form 2553), partnership taxation, and the salary/distribution split to minimize self-employment tax. Most LLCs above $50K profit should make this election.

📅

Compliance Calendar

Annual filing deadlines, registered agent requirements, operating agreement updates, and state franchise tax due dates — pre-built so you never miss a compliance requirement.

⚖️

Fundraising Implications

How your entity choice affects your ability to raise VC, angel investment, or SBA loans. C-Corp is required for equity investors; LLC is often better for debt financing and self-funded businesses.

TRUSTED BY EARLY USERS · ★★★★★ AVERAGE

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✓ Verified

Made the S-Corp election and set up a reasonable salary. Saved $14,000 in self-employment tax in year one alone.

C
Chris A.
Freelance Consultant
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✓ Verified

The operating agreement clauses prevented a major partnership dispute. Had the buyout provision in writing before it was needed.

S
Sarah N.
Co-Founder
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✓ Verified

Delaware vs. my home state — the analysis saved me from the common mistake. Home state for small businesses, Delaware for VC-funded startups.

M
Marcus L.
Startup Founder

One analysis. The right foundation.

Starter

$49

Entity recommendation and tax election strategy.

  • Entity type recommendation with full rationale
  • Tax election strategy (S-Corp vs. default)
  • Self-employment tax optimization calculation

30-day money-back guarantee

MOST POPULAR

Full Formation

$99

Complete formation package with operating agreement, filing checklist, and compliance calendar.

  • Everything in Starter
  • Operating agreement key clauses (8-12 provisions)
  • State filing checklist with costs and exact timeline
  • Annual compliance calendar with deadlines
  • Fundraising implications analysis
  • Founder equity and vesting structure guidance
  • Registered agent requirements for your state

30-day money-back guarantee

Frequently asked

Should I form in Delaware or my home state?

For small businesses that won't raise VC, form in your home state — Delaware annual fees plus registered agent costs add $500-800/year for no benefit. For VC-backed startups, Delaware C-Corp is the standard investors expect. We calculate the cost difference for your specific situation.

When should I make the S-Corp election?

When your net profit from self-employment exceeds roughly $50,000. Below that, the admin costs and payroll complexity outweigh the self-employment tax savings. Above $50K, the election typically saves $4,000-15,000 per year. We calculate your specific break-even.

Do I need an attorney for an operating agreement?

For single-member LLCs with no outside investors, a well-drafted template with your specific terms is usually sufficient. For multi-member LLCs, partnerships with complex splits, or if you're raising money, use an attorney for the final document — but this gives you the clauses and terms to start with.

How quickly can I form an LLC?

Most states: 1-5 business days standard filing, same-day for expedited (extra $50-150). Wyoming and Delaware can be same-day. Our checklist gives you the exact timeline and expedite options for your state.