There are many types of business entities and ways to raise capital available as a formal way to organize and finance your business, to gain rights and privileges, and to limit your personal liability. There may be tax and financial advantages to operating your business as formal legal entity, like a corporation or limited liability company, but it can also increase your business licensing fees and decrease the amount of personal control you have in running your business. There are many legal consequences in organizing and capitalizing your business, so it's a good idea to consult with Anderholt Whittaker LLP in this area of the law at the outset of your business.