In my very limited experience, the biggest question is if you will be having outside investors. This usually means you will need a C-corporation. It seems lik

In my very limited experience, the biggest question is if you will be having outside investors. This usually means you will need a C-corporation. It seems like that won't be an issue here. An S-corporation (which is still a corporation - just a different tax status) is a way to structure yourself as a corporation without having double taxation - taxed on profit for your business, and taxed on the wages you pay yourself. I don't recommend a sole-proprietorship because they have limited protection as a corporation (it's like personally guaranteeing a loan). Also, you may have trouble with having it in two people's name. The way I've learned about this is through various blogs, and Quora. Here is one of the first ones I began reading, that very clearly explains legal startup issues, and is very available in terms of time and discussing things on the phone. http://walkercorporatelaw.com/startup-issues/choice-of-entity-for-entrepreneurs/#more-864 http://walkercorporatelaw.com/startup-issues/choice-of-entit... Good luck! It's not too hard to wade through this after reading for a couple of days.