A 'Home business' can be a sole proprietorship, or a partnership, or a corporation. 'Home' just means that it is based at home. There are many very sophisticated businesses that are corporations based at home. So I think you are probably starting as a 'sole proprietor'. In many cases that is fine. It is not a matter of how big or how small your business is, but how much you have to protect personally that determines whether you need to become a partnership or corporation. If you have few personal assets, and don't need to protect them, remain as a sole proprietor. If your business has virtually no liability associated with it, you can remain as a sole proprietor. But if you have personal assets, or if your business is one that could place you in personal jeopardy, then think about a corporation. Yes, it is very possible to form the partnership or corporation later on. It is typically a matter of notifying your creditors and your bank of the new status, and the business just keeps on growing. MaryAnnBusiness Plan MasterStart and Finance Your Business Now ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.

Yes it is possible to transition from one to the other. I would suggest going solo first unless the person you want to partner with has a significant amount of experience. I am also a consultant and I chose to work from my home at this time becuase its cuts a lot of your overhead, if you find yourself being overwhelmed then you could outsource. Hope this helps, and good luck to you.