LMC1, Lee gave a great answer. Here are just few links that can explain some of the ideas he discussed: Steps to Registering a Business Business Incorporation Business Licenses and Permits The first link contains the basics about registering a business including obtaining your Tax ID and registering with the IRS. The second link just provides you with a better idea of each type of business. This can help you make an informed decision about how to incorporate your business. Third link gives you an idea of what permits you will need. The second and third link can provide you with state specific information. I hope this helps! Feel free to ask more questions! BriaS

Two states immediately come to mind if your goal is to avoid state level double taxation.  Those would be Delaware and Nevada.   With that being said, double taxation can be avoided if you choose to incorporate with a subchapter 'S' status or LLC with the option of being taxed as a subchapter 'S' corporation.  Both options provide you the opportunity of passing all profits and losses to the owners.   You will be responsible for the following issues:   1. Worker's compensation insurance in every state in which you hire an employee 2. Obtaining a state employer identification number 3. Registering your business in each state 4. Paying all taxes and fees associated with an employee in each state   If you hire people as independent contractors, the US Dept. of Labor has specific guidelines for the arrangement.   Independent contractors will be required to provide you with a W-9, proof of driving insurance (if required for the job), proof of worker's compensation insurance for themselves, and other insurance as may be needed.   Per your question regarding which business structure should you use, my recommendation would be to use LLC with the subchapter 'S' option.    You will also need business insurance.  We use The Hartford for our insurance; of course, there are many options available.  You want to ensure you get have the insurance policy cover errors and ommissions.   You'll also need to consider the various issues surrounding filing state employment taxes and fees.  While your local accountant may be highly educated about your state's revenue laws, keeping up with all the different states may be a challenge for him or her.  Talk to your accountant about the best way to handle those issues.   I hope this helps you and others.

I would suggest this. Your form of organization has more to do with your and your partners/investors personal situations then with your business itself. The idea is how do you want to be protected and how or when do you want to be taxed. I prefer a LLC - offers the same protection as a C-Corp and the same taxation (if you choose) as a Sole Proprietorship - all without the hassles of a C-Corp. But, you investor may require a C-Corp to ensure that they can take a proper equity stake.

I am in a similar vertical. If you could tell me a little bit more about the staffing company, I'd be glad to provide any insight on that end.