When deciding what business form to choose, a business should consider its financing needs. Investors can come from many different areas, such as friends and family, individuals involved in the business, the business' suppliers or partner companies, venture capitalists, and others. Each type of investor has similar desires. For example, none of them wants to be liable for the business's debts if it fails. However, they also have very different needs. A partner company that is financing a venture which will be key in its own success may want some control over the business' management. An individual working for the company may want to share the profits, but may not wish to be directly involved in the day-to-day management. The business also may want the management help of a successful and more experienced company, or it may want to limit control of its management to a few key individuals. Some business entities may even be limited by law as to who can own their shares; for example, a professional corporation's shares may only be owned by individuals licensed to provide its type of professional services.

Partnerships and limited liability companies (LLCs) are financed with contributions and loans from partners or members and others. Corporations can issue stock to shareholders and raise money though bonds and other debt instruments.