Choosing the right business structure is one of the most important financial decisions you'll make as a business owner. Whether you're starting your first company, branching out with a subsidiary, or looking to restructure an existing business, the entity you select will influence everything from your taxes to your legal liability. There's no one-size-fits-all solution. The best option depends on the size of your business, how it's funded, and your long-term goals. Before you make a decision, it's smart to understand the basics of the three most common structures: LLCs, S-Corps, and C-Corps.

Owning your own business as a sole proprietor means you have an unparalleled level of freedom to operate it as you see fit while taking advantage of unique growth opportunities. With all that freedom, though, comes an equally significant amount of financial responsibility, particularly when tax season rolls around. With a basic understanding of critical tax forms, deductions, and codes, you can make tax time less stressful and more rewarding across the board.