Glossary · People and paperwork
In short
This refers to how a business is legally organized, such as a sole proprietorship, partnership, LLC, or corporation. Your chosen structure impacts liability, taxes, and how you acquire and operate the business.
When acquiring a business, you'll decide whether to continue the seller's entity structure or form a new one. This choice affects your personal liability, tax obligations, and how the assets are transferred. Discuss this with your attorney and tax advisor early in the process.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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