In addition to selecting a proper entity, selecting a proper tax structure is not a one size fits all process. A single member LLC is a sole proprietorship, whereas the default tax structure of an LLC with two or more member is a partnership for tax purposes. However, an LLC can also elect to be a small business corporation (S corp) for tax purposes. Determining which tax structure to choose can be like navigating a maze. The facts and circumstances of your business type, long-term operation goals, cash flow, potential for seeking outside investors, and type of assets of the company are just some of the relevant questions to consider when electing a tax structure.