Starting from the statistics, this paper raises the question of why a limited liability company (d.o.o.) as a form of business is most suitable for most entrepreneurs. The paper begins by placing the topic in the observed context, considering the distribution of all forms of business in the domestic market for the current year. Nature of this work is theoretical, methods used for compiling it are analysis and comparison. A fair amount of the attention in this paper is dedicated to sole proprietorship, as the second most common form of business on Croatian market. The popularitty is based on a very simple registration and low opening costs. A special feature of this form of business is the possibility of paying a flat income tax and independent bookkeeping up to HRK 300,000.00 of annual income. A partnership involves two or more natural persons who agree to achieve a common goal. A primary disadvantage of sole proprietorship and partnerships is the unlimited several personal liability of owners and partners for all business obligations. The main advantage for members of deemed capital companies is their limited liability for the company's obligations. They have easier access to sources of financing, easier entry on new markets, and are more suitable for cooperation with larger entrepreneurs. Capital companies are subjected to the application of the Accounting Act and are liable to profit tax. D.o.o. is more affordable than a joint stock company due to a much smaller amount of share capital. Advantage in relation to a simple limited liability company (j.d.o.o.) is in 25% of the profits of which j.d.o.o. must set aside in reserve, while d.o.o., after payment of the prescribed taxes, freely disposes of its profits. In addition, d.o.o. has better credibility with creditors. However, some features j.d.o.o. and the ones of partnership make those two favorable forms for the very beginning of a business. Some of the novelties are the possibility of online establishment and the termination of d.o.o. and j.d.o.o. by abbreviated procedure, which means that the company can be terminated without liquidation if the owners decide so, while having no outstanding liabilities. This shortens and reduces the cost of the process of founding and closing companies, which until recently could be cited as a lack of d.o.o. The conclusion of the paper is complex and indicates that each of the forms of business is the most favorable sometimes, or to someone, in a certain situation. This depends, among other things, on the enterprise life cycle phase, ambitions and specific wishes of the entrepreneur, as well as on the nature of the activity he performs and its possibilities on the existing market.