What type of business should be setup to run a software company
A non-profit is only if you have no intention of making money and want are benevolent. You can have a salary and earn some funds but the purpose of a non-profit is to assist or help others and not for profit. The area is highly regulated and not a good way to have an entity. For software licensing please understand that the State you are conducting business is a factor. CA used to have a tax based upon gross sales so if you had $5 million in sales then you would have to pay $5,000 even if you lost money. If its one person then usually a corporation would be best depending on the State you reside and will conduct business. Most ral estate is in the form of an LLC. .If you want to sell the company a C Corporation is typically the best approach. There is no correct answer but an LLC or S corporation typically is best.