When establishing a new business organization, choosing the corporate structure is one of the first and most important decisions to be made. Depending on the industry in which you operate and your state's business laws, the right form can protect your personal assets and provide tax advantages for the owners and managers.

The most common types of business structures in the United States include:

• Sole Proprietorship: As the simplest business structure, sole proprietorships are the least expensive type of corporate structure, but they also provide the fewest benefits. Under business law, sole proprietorships and their owners are legally considered one and the same, so all revenue will be treated as your own personal income, and you won't be protected from any business liabilities.
• Partnerships: Partnerships, closely related to sole proprietorships, are designed for businesses with multiple owners. Under a general partnership, you'll still be held personally liable for any business debts, while a limited partnership may provide you with a certain amount of liability protection.
• Corporations: Unlike other business structures, corporations are legally considered completely separate entities from their owners and stockholders. A corporation offers considerable protection from the business's liabilities and can be structured to minimize your tax burden. However, corporations are among the most complex business structures, requiring extensive paperwork and several officers.
• Limited Liability Companies: These structures combine the ease of sole proprietorships with the benefits of managing a separate legal entity. LLCs can be structured as pass-through entities, which means revenue can be reported as your own personal income, which is usually taxed at a lower rate.

The business law attorneys at James T. Kratovil Law Offices, PLLC in Charles Town, WV, know how important choosing the right corporate structure can be, which is why they strive to provide each of their clients with the most effective legal guidance possible. Visit their website to learn more about their extensive experience, or call (304) 728-7718 to schedule a consultation today.