// Entity Structure Quiz — interactive educational tool const { useState: useStateQuiz, useMemo: useMemoQuiz, useEffect: useEffectQuiz } = React; /* --- Entity catalog ---------------------------------------------------- */ const ENTITIES = { sole: { key: 'sole', name: 'Sole Proprietor', nameEm: 'Sole Proprietor', tagline: 'The default for a one-person show with nothing on the line but time.', incorporation: { value: 'No', kind: 'no', note: 'No state filing; operate under your own name or a DBA.' }, liability: { value: 'None', kind: 'no', note: 'You and the business are the same person, legally and financially.' }, passthrough: { value: 'Yes', kind: 'yes', note: 'All profit flows to your personal return.' }, form: { value: 'Schedule C', note: 'Filed with your 1040.' }, deadline: { value: 'Apr 15', note: 'With your personal return (Oct 15 on extension).' }, bestFor: 'Freelancers and side-hustles testing an idea with no employees, no inventory, and no outside capital.', }, partnership: { key: 'partnership', name: 'General Partnership', nameEm: 'Partnership', tagline: 'Two or more owners, pass-through tax, and shared personal risk.', incorporation: { value: 'No', kind: 'no', note: 'No state formation required — but get a written partnership agreement.' }, liability: { value: 'None', kind: 'no', note: 'Each partner is personally liable for debts and the acts of the others.' }, passthrough: { value: 'Yes', kind: 'yes', note: 'Profit and loss flow to partners via K-1s.' }, form: { value: 'Form 1065 + K-1', note: 'Partnership return plus a K-1 to each partner.' }, deadline: { value: 'Mar 15', note: 'Sep 15 on extension.' }, bestFor: 'A temporary or low-risk venture between trusted co-owners where formalizing as an LLC isn\'t worth the filing yet.', }, llc: { key: 'llc', name: 'LLC', nameEm: 'LLC', tagline: 'Liability protection with pass-through simplicity. The workhorse for small business.', incorporation: { value: 'Yes', kind: 'yes', note: 'File articles of organization with the state; maintain an operating agreement.' }, liability: { value: 'Yes', kind: 'yes', note: 'Members generally aren\'t personally liable for business debts.' }, passthrough: { value: 'Yes', kind: 'yes', note: 'Default tax treatment is pass-through (Sch. C, 1065, or S-corp if elected).' }, form: { value: 'Sch. C / 1065', note: 'Sch. C for single-member; 1065 for multi-member; 1120-S if S-corp elected.' }, deadline: { value: 'Apr 15 / Mar 15', note: 'Apr 15 single-member; Mar 15 multi-member or S-elected.' }, bestFor: 'Most owner-operated small businesses that want liability protection without the formalities of a corporation.', }, scorp: { key: 'scorp', name: 'S-Corporation', nameEm: 'S-Corp', tagline: 'Pass-through taxation with payroll discipline — a self-employment tax strategy, not a legal form.', incorporation: { value: 'Yes', kind: 'yes', note: 'Formed as LLC or C-corp, then elect S status with IRS Form 2553.' }, liability: { value: 'Yes', kind: 'yes', note: 'Inherited from the underlying LLC or corporation.' }, passthrough: { value: 'Yes', kind: 'yes', note: 'Income passes to shareholders — but owners must take "reasonable" W-2 salary.' }, form: { value: 'Form 1120-S + K-1', note: 'S-corp return plus a K-1 to each shareholder.' }, deadline: { value: 'Mar 15', note: 'Sep 15 on extension.' }, bestFor: 'Profitable owner-operated businesses clearing ~$60k+ in net profit where self-employment tax savings offset payroll complexity.', }, ccorp: { key: 'ccorp', name: 'C-Corporation', nameEm: 'C-Corp', tagline: 'The venture-backable default — clean cap tables, stock options, and institutional capital.', incorporation: { value: 'Yes', kind: 'yes', note: 'File articles of incorporation; adopt bylaws; issue stock; hold board meetings.' }, liability: { value: 'Yes', kind: 'yes', note: 'Shareholders protected; pierce-the-veil rules apply if formalities lapse.' }, passthrough: { value: 'No', kind: 'no', note: 'Taxed at the entity level (21% federal), then again on dividends.' }, form: { value: 'Form 1120', note: 'Corporate income tax return.' }, deadline: { value: 'Apr 15', note: 'Oct 15 on extension. (Fiscal-year filers: 15th of the 4th month after year-end.)' }, bestFor: 'Startups raising priced venture rounds, issuing stock options, or planning to retain earnings / go public.', }, nonprofit: { key: 'nonprofit', name: 'Nonprofit Corporation', nameEm: 'Nonprofit', tagline: 'Mission-driven, tax-exempt, and accountable to a board — not shareholders.', incorporation: { value: 'Yes', kind: 'yes', note: 'Incorporate with the state, then apply for 501(c)(3) status with IRS Form 1023.' }, liability: { value: 'Yes', kind: 'yes', note: 'Directors and officers shielded, subject to fiduciary duties.' }, passthrough: { value: 'N/A', kind: 'partial', note: 'Generally tax-exempt; no owners to pass income to. UBIT applies to unrelated activities.' }, form: { value: 'Form 990', note: '990, 990-EZ, or 990-N depending on revenue.' }, deadline: { value: 'May 15', note: '15th day of the 5th month after fiscal year-end — for calendar-year filers, May 15.' }, bestFor: 'Charitable, educational, or religious missions funded by grants and donations rather than profit.', }, }; /* --- Question bank ----------------------------------------------------- */ /* Each option carries a score map: how strongly it points toward each entity. */ const QUESTIONS = [ { id: 'owners', eyebrow: 'Ownership', title: 'How many owners will the business have?', sub: 'Spouse co-owners count as one or two depending on your state — assume two if you both draw income.', options: [ { id: 'one', label: 'Just me', hint: 'Solo founder, freelancer, or single operator.', scores: { sole: 3, llc: 3, scorp: 2, ccorp: 1 } }, { id: 'two', label: 'Two to five', hint: 'Co-founders, family, or a small partnership.', scores: { partnership: 2, llc: 3, scorp: 2, ccorp: 2 } }, { id: 'many', label: 'Many / investors', hint: 'You plan to issue equity to outside investors.', scores: { ccorp: 4, llc: 1 } }, { id: 'board', label: 'A board + donors', hint: 'Mission-based, funded by grants and contributions.', scores: { nonprofit: 5 } }, ], }, { id: 'liability', eyebrow: 'Risk', title: 'How much personal liability exposure can you live with?', sub: 'Think product risk, premises, employees, contracts — anything that could produce a lawsuit.', options: [ { id: 'low', label: 'Minimal — it\'s a low-risk service', hint: 'Writing, consulting, digital goods with no physical delivery.', scores: { sole: 2, partnership: 1, llc: 2 } }, { id: 'med', label: 'Some — clients, contracts, vendors', hint: 'Standard B2B or B2C services with contracts and some financial exposure.', scores: { llc: 3, scorp: 2, ccorp: 2 } }, { id: 'high', label: 'High — employees, inventory, or product', hint: 'Physical product, staff, a storefront, or regulated activity.', scores: { llc: 4, scorp: 3, ccorp: 3, nonprofit: 2 } }, ], }, { id: 'capital', eyebrow: 'Capital', title: 'How will you fund the business?', sub: 'This drives the entity more than almost anything else — investors have strong preferences.', options: [ { id: 'self', label: 'Self-funded or customer revenue', hint: 'Bootstrapped from savings or operating cash.', scores: { sole: 2, llc: 3, scorp: 2 } }, { id: 'debt', label: 'Loans, lines of credit, SBA', hint: 'Debt financing from banks or the SBA.', scores: { llc: 3, scorp: 2, ccorp: 1 } }, { id: 'angels', label: 'Friends, family, or angels', hint: 'Informal equity from individuals who know you.', scores: { llc: 2, ccorp: 3 } }, { id: 'venture', label: 'Priced venture rounds', hint: 'Institutional VC expecting preferred stock and options.', scores: { ccorp: 5 } }, { id: 'donations', label: 'Grants & donations', hint: 'Charitable giving, foundations, public support.', scores: { nonprofit: 5 } }, ], }, { id: 'profit', eyebrow: 'Economics', title: 'What does profit look like in year two or three?', sub: 'A rough answer is fine — the goal is to see whether S-corp payroll math pencils out.', options: [ { id: 'break', label: 'Break-even or reinvesting', hint: 'Most revenue goes back into growth; little owner take-home.', scores: { sole: 1, llc: 3, ccorp: 3 } }, { id: 'modest', label: 'Under ~$60k net profit', hint: 'Enough to pay yourself modestly; S-corp probably isn\'t worth it yet.', scores: { sole: 2, llc: 3 } }, { id: 'solid', label: '$60k–$250k net profit', hint: 'The S-corp sweet spot for owner-operators.', scores: { scorp: 5, llc: 2 } }, { id: 'big', label: '$250k+ net profit', hint: 'Serious self-employment tax; complex strategy territory.', scores: { scorp: 3, ccorp: 3, llc: 2 } }, { id: 'none', label: 'Profit isn\'t the point', hint: 'Surplus goes back to the mission, not shareholders.', scores: { nonprofit: 5 } }, ], }, { id: 'payroll', eyebrow: 'Operations', title: 'Are you willing to run payroll for yourself?', sub: 'S-corps require owners to take a "reasonable" W-2 salary — real payroll, real filings, every pay period.', options: [ { id: 'yes', label: 'Yes — the tax savings are worth it', hint: 'You\'ll use a payroll provider and file quarterly returns.', scores: { scorp: 4, ccorp: 2 } }, { id: 'maybe', label: 'Maybe, once profit is high enough', hint: 'Open to it, but only when the math clearly beats the cost.', scores: { llc: 2, scorp: 2 } }, { id: 'no', label: 'No — keep it as simple as possible', hint: 'Prefer owner draws, one tax return, no payroll overhead.', scores: { sole: 3, partnership: 2, llc: 3 } }, ], }, { id: 'horizon', eyebrow: 'Horizon', title: 'What\'s the plan for the business three to five years out?', sub: 'Exit path, ownership changes, and optionality all push you toward different structures.', options: [ { id: 'lifestyle', label: 'A profitable lifestyle business', hint: 'Keep it small, keep it yours, take owner distributions.', scores: { llc: 3, scorp: 3, sole: 2 } }, { id: 'grow', label: 'Grow, hire, maybe raise someday', hint: 'Scale the team; consider outside capital later.', scores: { llc: 3, ccorp: 2, scorp: 2 } }, { id: 'venture', label: 'Venture scale — exit or IPO', hint: 'Raise priced rounds, issue options, sell or go public.', scores: { ccorp: 5 } }, { id: 'mission', label: 'Sustain a mission indefinitely', hint: 'Build a durable institution with no owners to pay out.', scores: { nonprofit: 5 } }, ], }, ]; /* --- Icons ------------------------------------------------------------- */ function QIcon({ name, size = 14 }) { const common = { width: size, height: size, viewBox: '0 0 16 16', fill: 'none', stroke: 'currentColor', strokeWidth: 1.6, strokeLinecap: 'round', strokeLinejoin: 'round' }; switch (name) { case 'check': return (); case 'x': return (); case 'dash': return (); case 'arrow': return (); case 'back': return (); case 'info': return (); case 'file': return (); case 'calendar': return (); case 'shield': return (); case 'building': return (); case 'split': return (); default: return null; } } /* --- Helpers ----------------------------------------------------------- */ function computeScores(answers) { const totals = { sole: 0, partnership: 0, llc: 0, scorp: 0, ccorp: 0, nonprofit: 0 }; QUESTIONS.forEach((q) => { const ans = answers[q.id]; if (!ans) return; const opt = q.options.find(o => o.id === ans); if (!opt) return; Object.entries(opt.scores).forEach(([k, v]) => { totals[k] = (totals[k] || 0) + v; }); }); return totals; } function rankedEntities(scores) { return Object.entries(scores) .map(([k, v]) => ({ key: k, entity: ENTITIES[k], score: v })) .sort((a, b) => b.score - a.score); } function reasonsFor(entityKey, answers) { const reasons = []; QUESTIONS.forEach((q) => { const ans = answers[q.id]; if (!ans) return; const opt = q.options.find(o => o.id === ans); if (!opt) return; const s = opt.scores[entityKey] || 0; if (s >= 3) { reasons.push({ q: q.eyebrow, choice: opt.label, hint: opt.hint }); } }); return reasons.slice(0, 4); } /* --- The quiz ---------------------------------------------------------- */ function EntityQuiz() { const [step, setStep] = useStateQuiz(0); // 0..N-1 = question, N = result const [answers, setAnswers] = useStateQuiz({}); const total = QUESTIONS.length; const isResult = step >= total; const scores = useMemoQuiz(() => computeScores(answers), [answers]); const ranked = useMemoQuiz(() => rankedEntities(scores), [scores]); const maxScore = Math.max(1, ...ranked.map(r => r.score)); const q = QUESTIONS[step]; const currentAnswer = q ? answers[q.id] : null; const canAdvance = !!currentAnswer; const isFinal = step === total - 1; const select = (optId) => { if (!q) return; setAnswers(a => ({ ...a, [q.id]: optId })); }; const next = () => { if (!canAdvance) return; setStep(s => s + 1); }; const back = () => setStep(s => Math.max(0, s - 1)); const restart = () => { setAnswers({}); setStep(0); }; const winner = ranked[0]; const runners = ranked.slice(1, 3); return ( <>
Resources · Tools

{isResult ? <>Your best-fit structure. : <>Which entity should you form?}

{isResult ? 'Based on your answers, here\'s the structure that lines up best — plus the runners-up, the filings you\'ll owe, and the dates that actually matter.' : 'Six questions. No email required. We\'ll weigh liability, taxes, funding, and what you want three years out — then show you the structure that fits, with the filings and deadlines spelled out.'}

{!isResult && } {!isResult && } {isResult && }
{isResult && (
{ e.preventDefault(); restart(); }}>↺ Start over
)} {/* Disclaimer */}
This is educational, not legal or tax advice. Entity selection depends on facts this quiz can't see — your state, industry, existing agreements, residency, spouse's situation, long-term plans, and a dozen other things. Rules, thresholds, and deadlines also change. Before you file, elect, or convert, talk to a qualified attorney and CPA about your specific circumstances. For help from someone who does this every day, talk to a Revenu advisor or start a free trial.
{/* Comparison table */}
Reference

The six structures, side by side.

The same five questions, answered for every common entity type. Bookmark this — it's the sheet most founders wish they'd had the day they started.

); } /* --- Question Panel ---------------------------------------------------- */ function QuestionPanel({ q, step, total, currentAnswer, onSelect, onBack, onNext, canAdvance, isFinal }) { const pct = ((step) / total) * 100; return (
Question {step + 1} of {total}
{q.eyebrow}

{q.title}

{q.sub}

{q.options.map((opt, i) => { const selected = currentAnswer === opt.id; const key = String.fromCharCode(65 + i); // A, B, C... return ( ); })}
); } /* --- Preview (running scorecard) --------------------------------------- */ function PreviewPanel({ ranked, maxScore, answered, total }) { const hasAny = answered > 0; const leader = ranked[0]; return (
Leaning toward
{answered}/{total} answered
{hasAny ? 'Current leader' : 'Start the quiz'}
{hasAny && leader.score > 0 ? {leader.entity.nameEm} : —}
{hasAny && leader.score > 0 ? leader.entity.tagline : 'Answer a few questions and we\'ll start narrowing toward the structure that fits your business.'}
Fit scores
Live
{ranked.map((r, i) => { const pct = maxScore > 0 ? (r.score / maxScore) * 100 : 0; const cls = i === 0 && r.score > 0 ? 'is-top' : (r.score === 0 ? 'is-dim' : ''); return (
{r.entity.name}
{r.score || 0}
); })}
Educational only No email required
); } /* --- Result view ------------------------------------------------------- */ function ResultPanels({ winner, runners, answers }) { const e = winner.entity; const reasons = reasonsFor(e.key, answers); return (
Recommended structure

{e.nameEm}

{e.tagline}

Why this fits you
{reasons.length === 0 && (
{e.bestFor}
)} {reasons.map((r, i) => (
{r.q}: {r.choice.toLowerCase()}. {r.hint}
))}
Talk to a Revenu CFO See pricing
Quick facts
Also worth considering
{runners.filter(r => r.score > 0).map((r, i) => (
{r.entity.name}
{r.entity.tagline}
{r.score} pts
))} {runners.every(r => r.score === 0) && (
No strong runners-up — your answers point clearly to one structure.
)}
); } function FactRow({ icon, label, fact }) { const cls = fact.kind === 'yes' ? 'is-yes' : fact.kind === 'no' ? 'is-no' : ''; return (
{label}
{fact.note}
{fact.value}
); } /* --- Comparison Table -------------------------------------------------- */ function ComparisonTable() { const order = ['sole', 'partnership', 'llc', 'scorp', 'ccorp', 'nonprofit']; const rows = [ { key: 'incorporation', label: 'Incorporation required', sub: 'State filing to create the entity.' }, { key: 'liability', label: 'Liability protection', sub: 'Does it shield personal assets?' }, { key: 'passthrough', label: 'Pass-through taxation', sub: 'Income taxed at the owner level only.' }, { key: 'form', label: 'Federal tax form', sub: 'What the IRS wants each year.' }, { key: 'deadline', label: 'Filing deadline', sub: 'Calendar-year filers; extensions add six months.' }, ]; const cell = (entity, rowKey) => { const f = entity[rowKey]; if (!f) return null; if (rowKey === 'form' || rowKey === 'deadline') { return ( {f.value} {f.note} ); } // yes/no/partial cells let cls = 'cell-partial'; let icon = 'dash'; if (f.kind === 'yes') { cls = 'cell-yes'; icon = 'check'; } else if (f.kind === 'no') { cls = 'cell-no'; icon = 'x'; } return ( {f.value} {f.note} ); }; return (
{order.map(k => ( ))} {rows.map(row => ( {order.map(k => cell(ENTITIES[k], row.key))} ))}
Structure → {ENTITIES[k].nameEm} {ENTITIES[k].name}
{row.label} {row.sub}
); } Object.assign(window, { EntityQuiz });