Comparing Business Structures: Private Limited, LLP, OPC & More

Starting a business in India? Choosing the right legal structure is one of the most critical foundational decisions you’ll make. It impacts everything from your personal liability and tax obligations to compliance requirements and your ability to attract investment and grow. Get this wrong, and you could face unnecessary hurdles down the line.

This post aims to simplify the often complex process of comparing business structures in India. We’ll break down the most common options:

• Private Limited Company (Pvt Ltd)
• Limited Liability Partnership (LLP)
• One Person Company (OPC)
• Sole Proprietorship
• Partnership Firm

We’ll outline the pros, cons, and key considerations for each. Our goal is to help you understand the crucial differences so you can choose the best fit for your unique venture, whether you’re launching a tech startup in Bangalore, running a professional services firm in Mumbai, or establishing a small business anywhere in India. Making an informed decision now is vital, so let’s dive into carefully comparing business structures. For more information on getting started, check out our guide on Company Registration in India.

Why Your Choice of Business Structure Matters

Selecting a business structure isn’t just paperwork; it has profound, long-lasting consequences for your business and personal finances. Here’s why this choice deserves careful consideration:

Impact on Personal Liability

This is perhaps the most significant differentiator. Liability refers to the extent to which you are personally responsible for the debts and obligations of the business.

• Limited Liability: Structures like Private Limited Companies (Pvt Ltd), Limited Liability Partnerships (LLP), and One Person Companies (OPC) offer limited liability. This means the business is considered a separate legal entity from its owners (shareholders or partners). If the business incurs debt or faces legal action, your personal assets (house, car, savings) are generally protected. The liability is limited to the amount invested in the business.
• Unlimited Liability: In contrast, Sole Proprietorships and traditional Partnership Firms come with unlimited liability. There’s no legal distinction between the owner(s) and the business. If the business fails or owes money, creditors can pursue the personal assets of the owner(s) to recover their dues. This poses a significant personal financial risk.

Taxation Differences

Different business structures are treated differently under India’s tax laws.

• Companies (Pvt Ltd/OPC): These are taxed at a specific corporate tax rate on their profits. Profits distributed to shareholders as dividends were previously subject to Dividend Distribution Tax (DDT) paid by the company, but now dividends are taxed in the hands of the shareholders at their applicable slab rates.
• LLPs: LLPs are taxed at a flat rate at the firm level. The share of profit received by partners is generally exempt from tax in their hands, avoiding double taxation. Check out our comprehensive overview on Taxation Services in India for more insights.
• Proprietorships/Partnerships: The business income is treated as the personal income of the owner(s)/partners and taxed according to their individual income tax slabs.

(Note: Tax laws are complex and subject to change. This is a high-level overview; consult a tax professional for specific advice.)

Compliance & Administrative Burden

The administrative tasks and legal formalities vary significantly between structures.

• High Compliance (Pvt Ltd): Private Limited Companies generally face the highest compliance burden. This includes mandatory board meetings, maintaining statutory registers, filing annual returns (like AOC-4 for financial statements and MGT-7 for annual returns) with the Registrar of Companies (ROC), and often mandatory statutory audits.
• Medium Compliance (LLP/OPC): LLPs and OPCs have fewer compliance requirements than Pvt Ltd companies. For instance, board meetings aren’t mandatory for LLPs, and OPCs have certain exemptions. They still need to file annual returns (like Form 8 and Form 11 for LLPs) with the ROC.
• Low Compliance (Proprietorship/Partnership): These structures have the simplest compliance, mainly related to tax filings (Income Tax Returns) and any industry-specific licenses. There are no mandatory ROC filings.

Funding & Scalability Potential

Your chosen structure directly influences your ability to raise capital and scale your operations.

• Equity Funding: Private Limited Companies are the most preferred structure for venture capitalists (VCs), angel investors, and private equity funds. This is because they can easily issue shares (equity) to investors, representing ownership. The defined corporate structure and governance framework provide comfort to investors.
• Debt Funding: While all structures can seek loans, companies and LLPs are often perceived as more credible and stable by banks and financial institutions compared to proprietorships or partnerships, potentially making it easier to secure larger loans.
• Scalability: Pvt Ltd structures are designed for growth and scalability, offering clear mechanisms for ownership transfer, bringing in new investors, and establishing robust governance. LLPs offer scalability too, but raising equity is harder.

Comparing Business Structures: Key Factors Explained

Let’s break down the practical aspects of each structure. Carefully comparing business structures involves looking at these key operational differences:

Registration Process & Costs

• Pvt Ltd/OPC: Registered with the Ministry of Corporate Affairs (MCA) through the online portal. Requires filing forms like SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus), obtaining Director Identification Numbers (DINs), and Digital Signature Certificates (DSCs). Generally involves higher initial setup costs due to documentation and professional fees.
• LLP: Also registered with the MCA using the FiLLiP (Form for incorporation of Limited Liability Partnership) form. Requires DINs/DPINs and DSCs for designated partners. Costs are typically moderate, often slightly less than a Pvt Ltd.
• Partnership Firm: Registered with the Registrar of Firms (optional in most states, but recommended). Requires drafting a Partnership Deed. Costs are relatively low.
• Sole Proprietorship: No formal registration required to establish the structure itself. However, you’ll likely need registrations like GST, MSME, Shop & Establishment Act license, depending on the business activity and turnover. Lowest setup cost.

Need help with registration? TaxRobo’s Company Registration services can simplify the process.

Compliance Requirements (Post-Registration)

Ongoing compliance is crucial to avoid penalties.

• Pvt Ltd: Annual ROC filings (Form AOC-4 for Financial Statements, Form MGT-7/7A for Annual Return), Annual Income Tax Return, maintenance of statutory registers, mandatory board meetings, AGM (Annual General Meeting). Statutory audit is usually mandatory.
• LLP: Annual ROC filings (Form 8 – Statement of Account & Solvency, Form 11 – Annual Return), Annual Income Tax Return. Statutory audit required if turnover exceeds ₹40 lakhs or contribution exceeds ₹25 lakhs.
• OPC: Similar to Pvt Ltd but with some exemptions (e.g., regarding AGMs if only one director). Annual ROC filings (AOC-4, MGT-7/7A), Annual Income Tax Return. Audit is generally mandatory.
• Partnership/Proprietorship: Primarily Income Tax Return filing. Audit required if turnover exceeds prescribed limits under the Income Tax Act. No ROC filings.

For official forms and deadlines, refer to the Ministry of Corporate Affairs (MCA) website.

Liability Protection

• Limited: Pvt Ltd, LLP, OPC. Personal assets are protected.
• Unlimited: Sole Proprietorship, Partnership Firm. Personal assets are at risk.

Tax Treatment

• Pvt Ltd/OPC: Taxed at applicable corporate tax rates. Profits distributed as dividends are taxed in the hands of shareholders.
• LLP: Taxed at a flat firm-level rate (currently 30% + surcharge + cess). Partner’s share of profit is generally exempt in their hands.
• Proprietorship/Partnership: Income taxed at the individual slab rates of the owner(s)/partners.

For current tax rates, visit the Income Tax Department website.

Ownership & Membership

• Pvt Ltd: Min 2 directors, Max 15 directors. Min 2 shareholders, Max 200 shareholders.
• LLP: Min 2 designated partners (at least one must be resident in India). No maximum limit on partners.
• OPC: Only 1 member/shareholder. Min 1 director (can be the same person), Max 15 directors. Requires a Nominee Director.
• Partnership: Min 2 partners, Max 50 partners (for most businesses).
• Proprietorship: Only 1 owner.

Foreign Investment (FDI)

• Pvt Ltd: FDI is allowed under the automatic route for most sectors, making it the preferred choice for foreign investment.
• LLP: FDI is permitted, but often under the government approval route for many sectors, and with certain conditions.
• OPC: Foreign citizens/entities generally cannot incorporate or become members/nominees of an OPC. Not suitable for FDI.
• Proprietorship/Partnership: FDI is generally not permitted in these structures, though NRIs can invest under specific conditions.

Ease of Winding Up / Closure

• Pvt Ltd/LLP/OPC: Closure involves a formal process through the MCA, which can be time-consuming and requires clearing all dues and filings. Can be struck off if inactive, or wound up formally.
• Partnership Firm: Closure involves dissolving the partnership as per the Partnership Deed and informing the Registrar of Firms (if registered). Simpler than companies/LLPs.
• Sole Proprietorship: Easiest to close. Primarily involves cancelling tax registrations and licenses.

Deep Dive: Private Limited Company (Pvt Ltd)

What is a Private Limited Company?

A Private Limited Company (Pvt Ltd) is a distinct legal entity, separate from its owners (shareholders) and managers (directors). It is incorporated under the Companies Act, 2013, and regulated by the Ministry of Corporate Affairs (MCA).

Key Features:

• Limited Liability: Shareholders’ personal assets are protected from business debts.
• Separate Legal Entity: The company can own property, sue, and be sued in its own name.
• Perpetual Succession: The company continues to exist even if shareholders or directors change, die, or leave.
• Share Capital: Ownership is divided into shares, making it easy to transfer ownership or bring in new investors (subject to restrictions in the Articles of Association).

Advantages of a Pvt Ltd

• Strong Liability Protection: Offers the best protection for personal assets among common business structures.
• Enhanced Credibility & Trust: Seen as a more formal and stable business structure by clients, suppliers, banks, and investors.
• Funding Magnet: This is the structure overwhelmingly preferred by Venture Capitalists (VCs) and Angel Investors for equity funding. The benefits of private limited over LLP in Hyderabad‘s thriving startup ecosystem, for example, are clearly visible in funding rounds.
• Clear Ownership & Management Structure: Defined roles for shareholders (owners) and directors (managers). Easy transferability of shares facilitates exit strategies and bringing in new owners.
• Allows FDI: Easily accommodates Foreign Direct Investment in most sectors.

For detailed insights, read our post on How Much Capital is Required to Start a Private Limited Company?.

Disadvantages of a Pvt Ltd

• Higher Compliance Burden: Requires strict adherence to the Companies Act, 2013, involving regular filings (ROC), mandatory meetings (Board, AGM), maintenance of statutory records, and often mandatory audits. This translates to higher ongoing costs.
• Complex Regulations: Procedures for incorporation, management, and closure are more complex compared to other structures.
• Less Operational Flexibility: Decision-making processes can be more formal and sometimes slower due to statutory requirements (e.g., board resolutions).
• Higher Setup Costs: Incorporation generally involves more paperwork and professional fees than LLP or proprietorship.

Who Should Choose a Pvt Ltd?

• Startups Seeking Funding: If your primary goal is to raise equity capital from VCs or angel investors, a Pvt Ltd is almost always necessary.
• Businesses Aiming for Scale: Ideal for ventures with ambitious growth plans and a large operational scope.
• Entities Needing High Credibility: Businesses dealing with large corporations, government tenders, or international clients often benefit from the formal image of a Pvt Ltd. When comparing private limited companies in India, factors like compliance history and authorised capital become important markers of credibility.
• Founders Wanting Clear Exit Strategies: The share-based structure simplifies selling stakes or the entire business.

Deep Dive: Limited Liability Partnership (LLP)

What is an LLP?

A Limited Liability Partnership (LLP) is a corporate structure introduced in India by the Limited Liability Partnership Act, 2008. It combines the flexibility of a traditional partnership with the benefit of limited liability, previously available mainly to companies. Like a company, it’s a separate legal entity from its partners.

Key Features:

• Limited Liability: Partners are not personally liable for the debts of the LLP or the misconduct of other partners. Liability is limited to their agreed contribution.
• Separate Legal Entity: An LLP can own assets and enter into contracts in its own name.
• Flexible Internal Structure: Partners can define their roles, responsibilities, and profit-sharing arrangements through a detailed LLP Agreement.
• Perpetual Succession: Changes in partners do not affect the existence of the LLP.

Advantages of an LLP

• Limited Liability: Protects partners’ personal assets.
• Lower Compliance Burden (vs. Pvt Ltd): Fewer mandatory meetings (no board meetings required), higher turnover thresholds for mandatory audits initially (£40 lakhs turnover or ₹25 lakhs contribution), and simpler annual filings (Form 8 & 11). This is a key point in the LLP versus private limited in Mumbai discussion, especially for service professionals seeking less administrative overhead.
• Operational Flexibility: The LLP Agreement allows significant flexibility in defining partner roles and profit distribution.
• Tax Efficiency: No Dividend Distribution Tax. Profits are taxed at the LLP level, and the share of profit received by partners is typically exempt from tax in their hands. This is one of the critical private limited and LLP differences in Chennai and other cities that professionals consider.
• Separate Legal Status: Offers more credibility than a traditional partnership.

Disadvantages of an LLP

• Difficulty Raising Equity Funding: Investors typically prefer the share structure of Pvt Ltd companies. Issuing equity or ESOPs is complex in an LLP.
• FDI Restrictions: While FDI is allowed, it often requires government approval and is subject to more conditions than for Pvt Ltd companies in certain sectors.
• Less Familiar Concept: Some traditional businesses or stakeholders might be less familiar or comfortable dealing with LLPs compared to the well-established Pvt Ltd structure.
• Profit Distribution: While tax-efficient for partners, the flat tax rate at the LLP level might be higher than the effective tax rate for small companies eligible for lower corporate tax slabs.

Who Should Choose an LLP?

• Professional Services Firms: Ideal for Chartered Accountants, Lawyers, Architects, Consultants, etc., who want limited liability but prefer the operational flexibility of a partnership.
• Businesses Seeking Flexibility & Liability Protection: Suitable for ventures where multiple partners want limited liability without the extensive compliance of a Pvt Ltd.
• Joint Ventures: Can be a suitable structure for specific joint ventures where partners require limited liability.
• When understanding LLP and OPC in Kolkata or elsewhere, the key distinction often lies in the number of founders (LLP needs minimum two) and the desire for operational flexibility versus solo ownership.

Deep Dive: One Person Company (OPC)

What is an OPC?

Introduced by the Companies Act, 2013, the One Person Company (OPC) allows a single entrepreneur to operate a corporate entity with limited liability. It’s essentially a private limited company with only one member/shareholder.

Key Features:

• Single Owner: Only one person is required as a member/shareholder.
• Limited Liability: Protects the personal assets of the sole owner.
• Separate Legal Entity: The OPC has its own legal identity, distinct from its owner.
• Nominee Director: Requires the appointment of a nominee who will take over the company in case of the sole member’s death or incapacity.
• Perpetual Succession: Continues to exist beyond the life of the original member through the nominee.

Advantages of an OPC

• Limited Liability for Solo Entrepreneurs: Provides the key benefit of liability protection, unavailable in a sole proprietorship.
• Enhanced Credibility (vs. Proprietorship): Having “(OPC) Private Limited” in the name lends more credibility than a proprietorship.
• Lower Compliance (vs. Pvt Ltd): Enjoys certain exemptions under the Companies Act compared to a full-fledged Pvt Ltd (e.g., regarding AGMs, quorum requirements). This makes it appealing when analysing how private limited compares to OPC for small businesses in Pune or similar hubs.
• Organized Structure: Encourages better record-keeping and formal business practices. For more detailed understanding, refer to Understanding the Concept of One Person Company (OPC) Under Section 2(62).

Disadvantages of an OPC

• Nominee Requirement: Finding and appointing a nominee director adds a layer of complexity.
• Conversion Requirement: Must mandatorily convert into a Private Limited Company if its paid-up share capital exceeds ₹50 lakhs or its average annual turnover over three consecutive financial years exceeds ₹2 crores.
• Restrictions: Cannot carry out Non-Banking Financial Investment activities. Cannot convert voluntarily into any other kind of company until two years have passed since incorporation (unless thresholds are breached).
• No FDI: Generally not eligible to receive Foreign Direct Investment. This is a key point regarding how OPC differs from LLP in Delhi or any major city when foreign capital is a possibility.
• Ownership Limitation: Only one natural person who is an Indian citizen and resident in India can form an OPC.

Who Should Choose an OPC?

• Solo Entrepreneurs Seeking Liability Protection: Ideal for individuals starting a business alone who want to separate personal assets from business risks without the complexity of a full Pvt Ltd.
• Testing a Business Idea: Suitable for founders who want a corporate structure initially but might scale up later (potentially converting to Pvt Ltd).
• When comparing OPC and private limited for Indian businesses, the OPC is often the stepping stone for solo founders before needing the broader features or fundraising capabilities of a Pvt Ltd.

Other Structures Briefly Explained

While Pvt Ltd, LLP, and OPC are popular incorporated structures, it’s worth understanding the simpler forms:

Sole Proprietorship

• What it is: The simplest form where the business is owned and run by one individual. There’s no legal distinction between the owner and the business.
• Pros: Very easy and inexpensive to start, minimal compliance requirements (mainly tax-related), owner has full control and receives all profits.
• Cons: Unlimited personal liability (biggest drawback), limited access to funding (banks may be hesitant, equity funding impossible), business continuity ends with the owner, perceived as less professional.

Partnership Firm

• What it is: An agreement between two or more individuals (partners) to carry on a business and share profits/losses. Governed by the Indian Partnership Act, 1932. Registration is optional but recommended.
• Pros: Relatively easy and inexpensive to set up compared to companies/LLPs, fewer compliance formalities, partners can pool resources and expertise.
• Cons: Unlimited joint and several liability for all partners (each partner can be held liable for the full extent of the firm’s debts), potential for disputes between partners, difficulty raising external capital, instability if partners leave or disagree.

Making the Choice: Comparing Business Structures Side-by-Side

Choosing the right structure requires weighing various factors against your specific situation.

Feature Comparison Table

Feature	Private Limited (Pvt Ltd)	Limited Liability Partnership (LLP)	One Person Company (OPC)	Sole Proprietorship	Partnership Firm
Liability	Limited	Limited	Limited	Unlimited	Unlimited
Min/Max Members	Min 2 / Max 200 Shareholders	Min 2 / No Max Partners	1 Member	1 Owner	Min 2 / Max 50 Partners
Registration Body	MCA (Companies Act, 2013)	MCA (LLP Act, 2008)	MCA (Companies Act, 2013)	None (Licenses needed)	Registrar of Firms (Opt)
Compliance Level	High	Medium	Medium (lower than Pvt Ltd)	Low	Low
Taxation Basis	Corporate Tax Rate	Firm Tax Rate (Partner share exempt)	Corporate Tax Rate	Personal Income Tax Slab	Personal Income Tax Slab
Fundraising (Equity)	Easiest	Difficult	Not Possible (Generally)	Not Possible	Very Difficult
Transferability	Easy (Shares)	Possible (Partner Interest)	Possible (Requires Nominee Change)	Not Applicable	Possible (Dissolution)
Annual Filings (ROC)	AOC-4, MGT-7/7A	Form 8, Form 11	AOC-4, MGT-7/7A	None	None (if unregistered)
Audit Requirement	Generally Mandatory	If Turnover/Contribution > Limit	Generally Mandatory	If Turnover > Limit (IT)	If Turnover > Limit (IT)
Perpetual Succession	Yes	Yes	Yes	No	No

Factors for Your Specific Needs

Consider these questions when making your decision:

• Business Goals: Are you aiming for rapid expansion, significant turnover, and potentially selling the business later (favors Pvt Ltd)? Or are you building a stable professional practice or a lifestyle business (LLP or OPC might be better)? This is crucial for business structure comparison for startups in Bangalore, where high growth is often the goal.
• Funding Plans: Do you absolutely need external equity funding from VCs or angel investors in the near future? If yes, Pvt Ltd is usually the only viable option. If you plan to bootstrap or rely on debt financing, LLP or OPC could work.
• Number of Founders: Are you a solo founder? An OPC gives liability protection. A Proprietorship is simpler but riskier. If you have co-founders, you’ll be looking at Pvt Ltd, LLP, or a Partnership Firm.
• Risk Tolerance: How important is it to protect your personal assets from business liabilities? If this is paramount, avoid Proprietorship and Partnership. Choose between Pvt Ltd, LLP, or OPC.
• Compliance Budget & Capacity: Can you afford the higher costs and administrative effort associated with Pvt Ltd compliance? Or do you prefer the relative simplicity and lower cost of an LLP, OPC, or Proprietorship?

Deciding Between Key Options

• Choose Pvt Ltd if: You plan to raise equity funds, need maximum credibility, aim for large scale, or anticipate needing FDI easily.
• Choose LLP if: You are in professional services, want limited liability with operational flexibility, have multiple partners, and don’t primarily aim for equity funding.
• Choose OPC if: You are a solo founder seeking limited liability and a corporate identity, but don’t need immediate external funding or multiple shareholders.

Conclusion

Choosing the right legal structure is a foundational step with significant long-term implications for your business’s success and your personal financial security. As we’ve seen in this detailed exploration comparing business structures, options like Private Limited Companies, Limited Liability Partnerships, and One Person Companies offer distinct advantages and disadvantages in the Indian context.

The key takeaway is clear: there’s no single answer to “what is the best business structure in India“. The optimal choice depends entirely on your specific circumstances – your business model, growth aspirations, funding requirements, number of founders, and tolerance for compliance complexity and cost. A Pvt Ltd shines for scalability and funding but demands high compliance. An LLP offers a pragmatic balance of limited liability and operational flexibility, especially for service businesses. An OPC empowers solo entrepreneurs with liability protection within a corporate framework.

Feeling overwhelmed by the options? Making the right choice from the start saves considerable time, money, and potential headaches later on. Don’t navigate this critical decision alone. Let TaxRobo’s experts guide you. We provide tailored advice based on your unique needs and offer seamless, efficient registration services across India.

Contact TaxRobo today for a consultation to determine the ideal business structure for your venture! Contact Us or explore our Company Registration Services.

FAQ Section

Q1: Can I change my business structure later on?

A: Yes, conversions between structures are legally possible in many cases (e.g., Sole Proprietorship to Pvt Ltd, OPC to Pvt Ltd upon meeting thresholds or voluntarily after 2 years, Partnership Firm to LLP or Pvt Ltd). However, these conversions involve specific legal procedures, paperwork, and associated costs. Starting with the structure that best aligns with your medium-term goals is generally more efficient.

Q2: What is generally the best business structure for a small online business or e-commerce store in India?

A: It heavily depends on your scale and plans. If starting solo and prioritizing liability protection with manageable compliance, an OPC is a strong contender. If you have partners, need flexibility, and aren’t immediately seeking VC funding, an LLP could be suitable. If growth is rapid, you have partners, and external funding is a key part of the strategy, a Pvt Ltd is often the preferred route, despite higher compliance. Comparing business structures based on your specific 1-3 year plan is essential here.

Q3: What are the main day-to-day compliance differences between a Pvt Ltd and an LLP?

A: Key differences include:

• Meetings: Pvt Ltd requires mandatory Board Meetings and an Annual General Meeting (AGM). LLPs do not have mandatory meeting requirements.
• Record Keeping: Pvt Ltds need to maintain more detailed statutory registers (like register of members, directors, charges, etc.) and minutes of meetings. LLP requirements are simpler, primarily governed by the LLP Agreement.
• Annual Filings: Both file annual returns with ROC, but forms differ (AOC-4 & MGT-7/7A for Pvt Ltd; Form 8 & Form 11 for LLP).
• Audit: Statutory audit is generally mandatory for all Pvt Ltd companies, whereas for LLPs, it’s mandatory only if turnover exceeds ₹40 lakhs or partner contribution exceeds ₹25 lakhs. These private limited and LLP differences in Chennai or any other city impact ongoing costs and administrative effort.

Q4: Does my location (e.g., Mumbai, Delhi, Bangalore) significantly impact the *choice* of business structure?

A: The core governing laws (Companies Act, 2013; LLP Act, 2008) are central acts applicable across India. Therefore, the fundamental legal characteristics, requirements, and benefits of a Pvt Ltd, LLP, or OPC remain the same regardless of location. However, local factors like the maturity of the startup ecosystem (influencing investor familiarity, as seen in business structure comparison for startups in Bangalore),availability and cost of professional services (CAs, Company Secretaries), or specific state-level licenses/regulations might practically influence your experience, but typically not the fundamental choice of which legal structure type (Pvt Ltd vs. LLP vs. OPC) is best suited for your core needs. Registration itself is largely centralized via the MCA portal.

Q5: Is an OPC always better than a Sole Proprietorship for a single founder?

A: Not necessarily “always.” The primary advantage of an OPC is limited liability, which protects your personal assets, and a separate legal identity that enhances credibility. However, an OPC involves higher setup costs, more complex annual compliance (ROC filings, potential audit), and the requirement of a nominee director compared to a Sole Proprietorship. If your business involves very low liability risk, your budget is extremely tight initially, and simplicity is the absolute priority, a proprietorship might be acceptable to start. But for most entrepreneurs seeking growth and professional standing, the benefits of limited liability usually make the OPC a better long-term choice, justifying the extra compliance. This decision point is often discussed when comparing OPC and private limited for Indian businesses, as OPC provides a middle ground for solo founders.