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...I don't think liability will be a big concern currently, yet.

If you're selling food stuffs, I would imagine that liability would be a rather large concern. It would suck to lose all your assets because you had a bad batch of cherries (last year a bunch of people got sick at disney land (?) because of salmonella infected tomatoes).

There are lots of good sites that discuss the basics of the different company forms, but in a nutshell:

- sole proprietor: easiest, most risk, high SE tax
- partner: like sole proprietor, but with a partner (duh)
- C-corp: limited liability, have to pay corporate taxes, complex
- S-corp: limited liability, no corporate taxes, complex
- LLC: like an S-corp, but different =)

For most people, any of the non-C-corp ones make sense. It really depends on how much hassle you're willing to go through. There is no strong reason to go with a sole proprietorship, other than simplicity, over an S-Corp or LLC (that I'm aware of). There's just more paperwork and opportunity for IRS audits with S-Corp/LLC structures.

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