In this study, we analyze the firm's choice of legal form of organization (“LFO”). We find that only about one in three firms begins operations as a proprietorship, while almost as many begin as limited liability companies and as corporations. Moreover, this distribution is remarkably stable...

In this study, we analyze the firm's choice of legal form of organization (“LFO”). We find that only about one in three firms begins operations as a proprietorship, while almost as many begin as limited liability companies and as corporations. Moreover, this distribution is remarkably stable...

We analyze the relation between different forms of debt financing at the firm's start-up and subsequent firm outcomes. We distinguish between business debt, obtained in the name of the firm, and personal debt, obtained in the name of the firm's owner and used to finance the start-up firm....

We use data from the Surveys of Small Business Finances to classify small privately held firms into four groups based upon their credit needs. Our results reveal strong and significant differences among each of these four groups of firms. Non-borrowers look very much like approved borrowers....