There are a lot of different ways to legally form your business. Each form, or entity, form your business. Each form, or entity, comes with good points and bad. No matter which one you choose, your everyday accounting will be pretty much the same. The big difference shows up in your capital accounts and on your income tax returns. If you're already in business, you already have an entity; if it turns out that the one you're using isn't the best for your company, you can isn't the best for your always change it.