Each of these, in turn, involves the product of variances in price, efficiency, and usage. A C-corp makes more sense when a business is in total growth mode and the owners reinvest all the profits back into the company (instead of taking distributions). There's no one best business entity choice for all small businesses, but there is a best option for your small business right now. Use the tips above to figure out what that is. Your choice of business entity is a very important one. It can affect how people perceive your business and has a big impact on your legal exposure and finances.