{"ok":true,"canonical_url":"https://dealroom.so/glossary/legal-structure","api_url":"https://dealroom.so/api/public/glossary/legal-structure","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"legal-structure","term":"Legal structure","group":"People and paperwork","definition":"This is how a business is legally organized (e.g., LLC, Corporation, Sole Proprietor). It affects liability, taxes, and how you structure the acquisition.","what_it_means":"The legal structure of the business you're buying (Sole Proprietor, Partnership, LLC, S-Corp, C-Corp) significantly impacts the acquisition process. It dictates whether you'll do a stock purchase or an asset purchase, and how liabilities and taxes are handled. Understand the implications for your own legal entity and tax situation before closing.","url":"https://dealroom.so/glossary/legal-structure","official_sources":[],"related":[{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"sole-proprietor","term":"Sole proprietor","url":"https://dealroom.so/glossary/sole-proprietor"}],"related_questions":[{"question":"Does my business legal structure (like LLC or Sole Proprietorship) affect SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-loans/basics/does-my-business-legal-structure-like-llc-or-sole-proprietorship-affect-sba-7-a-loan-eligi"},{"question":"What if the acquired business changes its legal entity structure after the SBA loan is approved?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-changes-its-legal-entity-structure-after-the-sba-loan-is-app"},{"question":"What happens if the acquired business changes its legal entity structure after the SBA loan is approved?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-acquired-business-changes-its-legal-entity-structure-after-the-sba-loa"},{"question":"When can a lender approve a change in the business name or legal structure without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-approve-a-change-in-the-business-name-or-legal-structure-without-prior-s"},{"question":"Can a lender approve a change in a borrower's business legal entity structure without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-approve-a-change-in-a-borrower-s-business-legal-entity-structure-without-prio"},{"question":"Can a lender approve a change in a 7(a) borrower's legal entity structure without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-approve-a-change-in-a-7-a-borrower-s-legal-entity-structure-without-prior-sba"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Legal structure","url":"https://dealroom.so/glossary/legal-structure","source_type":"DealRoom Data"}}