When structuring a business legally, most SMBs go with:

An LLC is often the preferred choice for small and medium-sized businesses (SMBs) because it offers a balance of liability protection and operational flexibility. It shields personal assets from business debts and lawsuits, similar to a corporation, but avoids the complex corporate tax structure and extensive regulatory requirements. While a sole proprietorship is simpler to set up, it offers no personal liability protection. A partnership shares liability among partners and can be more complex to manage. A corporation provides strong liability protection but involves more stringent compliance and double taxation, making it less appealing for many SMBs.