--- title: "Business Structure Decoded — LLC vs. C-Corp vs. Partnership | Jacobs Counsel" description: "Plain-English breakdown of LLC, S-corp, C-corp, and partnership structures — tax, fundraising, and exit implications for founders and operators." lang: en json-ld: | [ { "@context": "https://schema.org", "@graph": [ { "@type": [ "Organization", "LegalService" ], "@id": "https://jacobscounsellaw.com/#organization", "name": "Jacobs Counsel LLC", "alternateName": "Jacobs Counsel", "url": "https://jacobscounsellaw.com", "logo": { "@type": "ImageObject", "@id": "https://jacobscounsellaw.com/#logo", "url": "https://jacobscounsellaw.com/logo-dark.jpg", "contentUrl": "https://jacobscounsellaw.com/logo-dark.jpg", "caption": "Jacobs Counsel LLC" }, "image": { "@id": "https://jacobscounsellaw.com/#logo" }, "description": "AI-native boutique law firm serving as outside counsel to gaming and betting operators, AI and startup companies, and sports, athletes, and creators — including athletes and NIL. Licensed in New York, New Jersey, and Ohio.", "foundingDate": "2023", "address": [ { "@type": "PostalAddress", "streetAddress": "135 Madison Ave., Floor 4", "addressLocality": "New York", "addressRegion": "NY", "postalCode": "10016", "addressCountry": "US" }, { "@type": "PostalAddress", "streetAddress": "221 River Street, Floor 9", "addressLocality": "Hoboken", "addressRegion": "NJ", "postalCode": "07030", "addressCountry": "US" }, { "@type": "PostalAddress", "streetAddress": "127 Willow Ave., Floor 2", "addressLocality": "Cincinnati", "addressRegion": "OH", "postalCode": "45215", "addressCountry": "US" } ], "telephone": "+1-646-343-7227", "email": "intake@jacobscounsellaw.com", "areaServed": [ { "@type": "State", "name": "New York" }, { "@type": "State", "name": "New Jersey" }, { "@type": "State", "name": "Ohio" }, { "@type": "Country", "name": "United States" } ], "sameAs": [ "https://www.linkedin.com/company/jacobs-counsel", "https://twitter.com/JacobsCounsel", "https://www.instagram.com/jacobscounsellaw/", "https://jacobslegacycounsel.com" ], "knowsAbout": [ "Gaming Law", "Skill-based Gaming", "Sports Betting Regulation", "Sweepstakes and Promotional Gaming", "Multi-state Gaming Compliance", "AI Commercial Contracts", "SaaS Commercial Contracts", "Outside General Counsel", "Fractional General Counsel", "Technology Transactions", "Sports Law", "NIL Law", "Name Image and Likeness", "NCAA House v. NCAA Settlement", "College Athlete Representation", "Hospitality Law", "Liquor Licensing" ], "founder": { "@type": "Person", "@id": "https://jacobscounsellaw.com/about/drew-jacobs#person", "name": "Andrew R. Jacobs, Esq.", "alternateName": "Drew Jacobs", "url": "https://jacobscounsellaw.com/about/drew-jacobs", "jobTitle": "Founder & Managing Attorney", "image": "https://jacobscounsellaw.com/assets/drew-jacobs-headshot.jpg", "worksFor": { "@type": "LegalService", "@id": "https://jacobscounsellaw.com/#organization", "name": "Jacobs Counsel LLC", "url": "https://jacobscounsellaw.com" }, "knowsAbout": [ "Gaming law", "Sweepstakes and social casino compliance", "Skill-based gaming and predominance testing", "Sports betting and fantasy sports regulation", "Name, Image and Likeness (NIL) law", "College athlete revenue sharing", "Outside general counsel for technology and AI companies", "SaaS and commercial contracts" ], "hasOccupation": { "@type": "Occupation", "name": "Attorney", "occupationLocation": [ { "@type": "State", "name": "New York" }, { "@type": "State", "name": "New Jersey" }, { "@type": "State", "name": "Ohio" } ] }, "memberOf": { "@type": "Organization", "name": "Seton Hall University School of Law", "url": "https://law.shu.edu/" }, "sameAs": [ "https://www.linkedin.com/in/drew-jacobs-dj32/", "https://www.instagram.com/jacobscounsel", "https://profiles.superlawyers.com/new-york-metro/hoboken/lawyer/andrew-jacobs/5765bbd8-0554-4eb5-be6d-0431db28f834.html", "https://www.avvo.com/attorneys/07030-nj-andrew-jacobs-5765bbd8.html", "https://iapps.courts.state.ny.us/attorneyservices/search?lastName=jacobs&firstName=andrew", "https://jacobscounsellaw.com/about", "https://jacobscounsellaw.com/about/drew-jacobs" ] }, "employee": [ { "@type": "Person", "@id": "https://jacobscounsellaw.com/about/drew-jacobs#person", "name": "Andrew R. Jacobs, Esq.", "alternateName": "Drew Jacobs", "url": "https://jacobscounsellaw.com/about/drew-jacobs", "jobTitle": "Founder & Managing Attorney", "image": "https://jacobscounsellaw.com/assets/drew-jacobs-headshot.jpg", "worksFor": { "@type": "LegalService", "@id": "https://jacobscounsellaw.com/#organization", "name": "Jacobs Counsel LLC", "url": "https://jacobscounsellaw.com" }, "knowsAbout": [ "Gaming law", "Sweepstakes and social casino compliance", "Skill-based gaming and predominance testing", "Sports betting and fantasy sports regulation", "Name, Image and Likeness (NIL) law", "College athlete revenue sharing", "Outside general counsel for technology and AI companies", "SaaS and commercial contracts" ], "hasOccupation": { "@type": "Occupation", "name": "Attorney", "occupationLocation": [ { "@type": "State", "name": "New York" }, { "@type": "State", "name": "New Jersey" }, { "@type": "State", "name": "Ohio" } ] }, "memberOf": { "@type": "Organization", "name": "Seton Hall University School of Law", "url": "https://law.shu.edu/" }, "sameAs": [ "https://www.linkedin.com/in/drew-jacobs-dj32/", "https://www.instagram.com/jacobscounsel", "https://profiles.superlawyers.com/new-york-metro/hoboken/lawyer/andrew-jacobs/5765bbd8-0554-4eb5-be6d-0431db28f834.html", "https://www.avvo.com/attorneys/07030-nj-andrew-jacobs-5765bbd8.html", "https://iapps.courts.state.ny.us/attorneyservices/search?lastName=jacobs&firstName=andrew", "https://jacobscounsellaw.com/about", "https://jacobscounsellaw.com/about/drew-jacobs" ] } ], "potentialAction": { "@type": "ReserveAction", "target": { "@type": "EntryPoint", "urlTemplate": "https://cal.com/drewjacobs/quick-call?overlayCalendar=true", "actionPlatform": [ "https://schema.org/DesktopWebPlatform", "https://schema.org/MobileWebPlatform" ] }, "result": { "@type": "Reservation", "name": "Legal Strategy Call" } } }, { "@type": "WebSite", "@id": "https://jacobscounsellaw.com/#website", "url": "https://jacobscounsellaw.com", "name": "Jacobs Counsel", "description": "AI-native boutique law firm", "publisher": { "@id": "https://jacobscounsellaw.com/#organization" }, "potentialAction": { "@type": "SearchAction", "target": { "@type": "EntryPoint", "urlTemplate": "https://jacobscounsellaw.com/blog?search={search_term_string}" }, "query-input": "required name=search_term_string" }, "inLanguage": "en-US" } ] }, { "@context": "https://schema.org", "@type": "DigitalDocument", "@id": "https://jacobscounsellaw.com/resources/business-formation#document", "name": "Business Structure Decoded", "description": "LLC, Corp, and Partnership essentials for founders. Choose the right structure for your business.", "url": "https://jacobscounsellaw.com/resources/business-formation", "inLanguage": "en-US", "isAccessibleForFree": true, "encodingFormat": "application/pdf", "author": { "@id": "https://jacobscounsellaw.com/about/drew-jacobs#person" }, "publisher": { "@id": "https://jacobscounsellaw.com/#organization" }, "datePublished": "2026-08-19", "dateModified": "2026-08-19", "audience": { "@type": "Audience", "audienceType": "Business Formation" } }, { "@context": "https://schema.org", "@type": "ItemList", "name": "Primary site navigation — Jacobs Counsel LLC", "itemListElement": [ { "@type": "SiteNavigationElement", "position": 1, "name": "Gaming & Betting Counsel", "url": "https://jacobscounsellaw.com/services/gaming-law", "description": "Multi-state gaming and betting compliance, licensing, and platform agreements" }, { "@type": "SiteNavigationElement", "position": 2, "name": "AI & Startup Counsel", "url": "https://jacobscounsellaw.com/services/outside-counsel", "description": "Outside general counsel for AI and startup companies" }, { "@type": "SiteNavigationElement", "position": 3, "name": "Sports, Athletes & Creators", "url": "https://jacobscounsellaw.com/sports-entertainment-attorney", "description": "Athletes, NIL, and sports business matters" }, { "@type": "SiteNavigationElement", "position": 4, "name": "Resources", "url": "https://jacobscounsellaw.com/resources", "description": "Cornerstone guides, answers, comparisons, glossary, and blog" }, { "@type": "SiteNavigationElement", "position": 5, "name": "About", "url": "https://jacobscounsellaw.com/about", "description": "The firm, the team, and how we work" }, { "@type": "SiteNavigationElement", "position": 6, "name": "Contact", "url": "https://jacobscounsellaw.com/contact", "description": "Book a 15-Minute Case Assessment" } ] }, { "@context": "https://schema.org", "@type": "ItemList", "name": "Featured destinations — Jacobs Counsel LLC", "itemListElement": [ { "@type": "SiteNavigationElement", "position": 1, "name": "50-State Skill Gaming Legal Opinion", "url": "https://jacobscounsellaw.com/50-state-gaming-legal-opinion" }, { "@type": "SiteNavigationElement", "position": 2, "name": "Gaming & Betting Counsel", "url": "https://jacobscounsellaw.com/services/gaming-law" }, { "@type": "SiteNavigationElement", "position": 3, "name": "Sweepstakes & Social Casino Compliance", "url": "https://jacobscounsellaw.com/services/sweepstakes-gaming-compliance" }, { "@type": "SiteNavigationElement", "position": 4, "name": "Fantasy Sports & Prediction Markets", "url": "https://jacobscounsellaw.com/services/fantasy-sports-prediction-markets" }, { "@type": "SiteNavigationElement", "position": 5, "name": "Gaming Payments & App Store Approval", "url": "https://jacobscounsellaw.com/services/gaming-payments-app-store-approval" }, { "@type": "SiteNavigationElement", "position": 6, "name": "International Gaming Counsel", "url": "https://jacobscounsellaw.com/services/gaming-law-international" }, { "@type": "SiteNavigationElement", "position": 7, "name": "Fractional General Counsel for AI Startups", "url": "https://jacobscounsellaw.com/fractional-general-counsel-ai-startups" }, { "@type": "SiteNavigationElement", "position": 8, "name": "Outside Counsel for SaaS & Commercial Contracts", "url": "https://jacobscounsellaw.com/outside-counsel-saas-commercial-contracts" }, { "@type": "SiteNavigationElement", "position": 9, "name": "AI Transition Advisory", "url": "https://jacobscounsellaw.com/services/ai-transition-advisory" }, { "@type": "SiteNavigationElement", "position": 10, "name": "NIL Endorsement Attorney", "url": "https://jacobscounsellaw.com/nil-endorsement-attorney" }, { "@type": "SiteNavigationElement", "position": 11, "name": "House Settlement / NIL Revenue Share Guide", "url": "https://jacobscounsellaw.com/nil-revenue-share-guide" }, { "@type": "SiteNavigationElement", "position": 12, "name": "Full-Stack Counsel for the AI Age", "url": "https://jacobscounsellaw.com/full-stack-counsel-ai-age" }, { "@type": "SiteNavigationElement", "position": 13, "name": "Answers", "url": "https://jacobscounsellaw.com/answers" }, { "@type": "SiteNavigationElement", "position": 14, "name": "Legal Glossary", "url": "https://jacobscounsellaw.com/glossary" }, { "@type": "SiteNavigationElement", "position": 15, "name": "Blog", "url": "https://jacobscounsellaw.com/blog" }, { "@type": "SiteNavigationElement", "position": 16, "name": "Start an Engagement", "url": "https://jacobscounsellaw.com/intake" } ] }, { "@context": "https://schema.org", "@type": "ItemList", "name": "Client audiences — Jacobs Counsel LLC", "itemListElement": [ { "@type": "SiteNavigationElement", "position": 1, "name": "Gaming Operators", "url": "https://jacobscounsellaw.com/clients/gaming" }, { "@type": "SiteNavigationElement", "position": 2, "name": "AI & Startup Companies", "url": "https://jacobscounsellaw.com/clients/startups" }, { "@type": "SiteNavigationElement", "position": 3, "name": "Athletes & NIL", "url": "https://jacobscounsellaw.com/clients/athletes" }, { "@type": "SiteNavigationElement", "position": 4, "name": "Hospitality (adjacent practice)", "url": "https://jacobscounsellaw.com/clients/hospitality" } ] }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://jacobscounsellaw.com" }, { "@type": "ListItem", "position": 2, "name": "Resources", "item": "https://jacobscounsellaw.com/resources" }, { "@type": "ListItem", "position": 3, "name": "Business Formation", "item": "https://jacobscounsellaw.com/resources/business-formation" } ] } ] --- [Skip to main content](#main-content) [![Jacobs Counsel LLC logo](/assets/logo-header-D2qrDHtH.jpg)](/) Services [Gaming & Betting](/services/gaming-law) [50-State Gaming Legal Opinion](/50-state-gaming-legal-opinion)[Sweepstakes & Social Casino](/services/sweepstakes-gaming-compliance)[Fantasy & Prediction Markets](/services/fantasy-sports-prediction-markets)[Payments & App Store Approval](/services/gaming-payments-app-store-approval)[International Gaming](/services/gaming-law-international)[Gaming Law Hub](/gaming-law) [AI & Startup Counsel](/services/outside-counsel) [Fractional General Counsel](/fractional-general-counsel-ai-startups)[SaaS & Commercial Contracts](/outside-counsel-saas-commercial-contracts)[AI Transition Advisory](/services/ai-transition-advisory)[Deal Support](/services/deal-support)[Business Transactions](/services/business-transactions)[Brand & IP](/services/brand-ip) [Sports, Athletes & Creators](/sports-entertainment-attorney) [NIL & Endorsements](/nil-endorsement-attorney)[Revenue Share Guide](/nil-revenue-share-guide)[NIL Laws by State](/nil-laws-by-state)[Media & NIL Deals](/services/media-nil)[Creator Rights](/services/content-creator-rights) Featured [50-State Gaming Legal Opinion](/50-state-gaming-legal-opinion) Our flagship deliverable — a defensible, state-by-state legality analysis for your product. [All services →](/services) Insights [Blog](/blog)[Answers](/answers)[Deal Anatomy](/deal-anatomy)[Compare](/compare)[Guides](/resources)[Court Vision Weekly](/court-vision-weekly) About [About the Firm](/about)[How We Work](/how-we-work)[Drew Jacobs](/about/drew-jacobs)[Testimonials](/testimonials)[Media](/media)[Contact](/contact) [Legacy Counsel](https://jacobslegacycounsel.com) [Email](mailto:intake@jacobscounsellaw.com)[Book a 15-Minute Case Assessment](https://cal.com/drewjacobs/quick-call?overlayCalendar=true) [Book a 15-Minute Case Assessment](https://cal.com/drewjacobs/quick-call?overlayCalendar=true)[](mailto:intake@jacobscounsellaw.com)Toggle menu 1. [Home](/) 2. [Resources](/resources) 3. Business Formation [Back to All Resources](/resources) FREE 12-PAGE GUIDE 🏢 # Start Right. Structure Smart. How to choose and set up the right business entity for your venture. The entity decision looks boring until it's expensive. The wrong structure costs founders real money in taxes, kills VC fundraising before it starts, and creates partnership disputes that the original handshake never anticipated. Picking 'whatever LegalZoom defaults to' is fine — until you try to take outside capital and learn that you picked wrong. This guide cuts past the generic LLC-vs-Corp listicles. It walks through the structure question the way founders actually face it: are you raising venture capital or staying private, are you bringing on partners or staying solo, do you want pass-through tax treatment or are you planning for an exit, and what state should this thing actually live in. Read it before you file. It's much cheaper than converting an entity later. Share ### Get Your Free Copy Enter your details below and we'll send it straight to your inbox. Download Free Guide No spam. Unsubscribe anytime. ## What's Inside - 1 LLC vs. Corporation: the real differences - 2 Tax implications of each structure - 3 Partnership agreements essentials - 4 State selection strategies - 5 Converting between entity types ## Bonus Content Entity comparison matrix Formation cost calculator Operating agreement checklist ## Ready for Personalized Legal Guidance? This guide is a great starting point, but every situation is unique. Let's discuss your specific needs. [Book a 15-Minute Case Assessment →](https://cal.com/drewjacobs/quick-call?overlayCalendar=true) [![Jacobs Counsel LLC](/assets/logo-footer-N09_u2vs.png)](/) Counsel for the business of tech, gaming, and sports. [Start a Matter](/intake) ### Contact - [(646) 343-7227](tel:+16463437227) - [intake@jacobscounsellaw.com](mailto:intake@jacobscounsellaw.com) - [New York: 135 Madison Ave., Floor 4, New York, NY 10016](/locations/new-york) - [New Jersey: 221 River Street, Floor 9, Hoboken, NJ 07030](/locations/new-jersey) - [Ohio: 127 Willow Ave., Floor 2, Cincinnati, OH 45215](/locations/ohio) ### Practice - [Tech Companies](/services/outside-counsel) - [Gaming](/services/gaming-law) - [Athletes & Talent](/clients/athletes) - [How We Work](/how-we-work) - [Legacy Counsel by Jacobs Counsel](https://jacobslegacycounsel.com) ### Insights - [Blog](/blog) - [Answers](/answers) - [Deal Anatomy](/deal-anatomy) - [Compare](/compare) - [Guides](/resources) - [Court Vision Weekly](/court-vision-weekly) ### Firm - [About the Firm](/about) - [Drew Jacobs](/about/drew-jacobs) - [Testimonials](/testimonials) - [Media](/media) - [Contact](/contact) - [Locations](/locations) ### Court Vision Weekly Five stories, five minutes, once a month. Legal insights for athletes, creators, founders, and gaming operators. [View archive](/court-vision-weekly) Subscribe Jacobs Counsel LLC is licensed to practice in New York, New Jersey, and Ohio. This website is attorney advertising. The information here is general in nature and is not legal advice. Contacting us does not create an attorney-client relationship, and no such relationship exists until we sign a written engagement agreement. Prior results do not guarantee a similar outcome. © 2026 Jacobs Counsel LLC. All rights reserved. [Privacy](/legal/privacy-policy)[Terms](/legal/terms)[Attorney Advertising](/legal/attorney-advertising)[Disclaimer](/legal/disclaimer)[Accessibility](/legal/accessibility)[Site Index](/sitemap)