Business Startup in West Virginia
Choose a Business Type

First Decisions

The first formal decision to be made in starting a business is to select the legal structure for the company.  This decision will depend on the number of people who will control the company, how decisions are to be made, and other considerations such as liability and tax issues.  The information here may help you make the decision, but it is important to consult with someone with experience who can answer your questions.  That may be an attorney or accountant, or a specialist with the Small Business Development Center.

Check the facts!

In some cases, the business you do may be regulated and some business types may not be acceptable.  For example, the Alcoholic Beverage Control Commission will not issue a license to sell alcoholic beverages to a sole proprietorship or a member-managed limited liability company.  To save time, money and frustration, take the time to find out everything you can about the requirements for your new business before you file the organization papers.

The success of your new business depends on planning.  Click a company type name in this chart for a short description of the characteristics of that company type, then follow the next link for specific instructions for the selected business type.

Corporation  --  Go to Startup!

• May be for-profit or non-profit.
• Must have a least two officers, elected at annual meeting.
• Corporation operated under charter and by-laws; law governs voting requirements for amendments and changes & record-keeping
• May create and issue stock.
• Law provides personal liability protection for directors & officers acting in good faith.
• Annual report, attorney-in-fact fee & corporation license tax required.

Limited Liability Company (LLC) --  Go to Startup!

• For-profit only.
• May be fixed term or perpetual.
• May be single-member or multiple-member company; members may have authority defined in operating agreement.
• May be member-managed or manager-managed.
• Members have equal ownership unless otherwise defined by agreement.
• Company operated under articles of organization.  Additional provisions may be provided by operating agreement, or if none is written, then by the provisions of law.
• Law provides personal liability protection for members & managers acting in good faith.
• May be taxed as partnership under federal law, depending on structure.
• Annual report & attorney-in-fact fee required.

General Partnership --  Go to Startup!

• For-profit only.
• Must have two or more partners; partners have equal authority unless otherwise defined in partnership agreement.
• Partners have equal ownership unless otherwise defined by agreement.
• Company operated under partnership agreement.
• No personal liability protection provided by law.
• Taxed as partnership, with profits assigned according to partnership interest.

Limited Partnership --  Go to Startup!

• For-profit only.
• Must have at least one general partner and one limited partner; partners have equal authority unless otherwise defined in partnership agreement.
• Partners have equal ownership unless otherwise defined by agreement.
• Company operated under partnership agreement.
• No personal liability protection provided by law.
• Taxed as partnership, with profits assigned according to partnership interest.
• Annual report & attorney-in-fact fee required.

Limited Liability Partnership --  Go to Startup!

• For-profit only.
• Must have at least one general partner and one limited partner; partners have equal authority unless otherwise defined in partnership agreement.
• Partners have equal ownership unless otherwise defined by agreement.
• Company operated under partnership agreement.
• Law provides personal liability protection for members & managers acting in good faith.
• Taxed as partnership, with profits assigned according to partnership interest.
• Domestic companies file annual report & fee.
• Foreign companies re-register every two years.

Voluntary Association --  Go to Startup!

• May be for-profit or non-profit.
• Must have a least two officers.
• Association operated under association agreement; corporation law governs voting requirements for amendments and changes & record-keeping.
• Except as provided in voluntary association law, organization operates under corporations law.
• No personal liability protection provided by law.

Business Trust --  Go to Startup!

• May be for-profit or non-profit??
• Must have a least one trustee.
• Trust operated under trust agreement; corporation law governs voting requirements for amendments and changes & record-keeping.
• Except as provided in business trust law, organization operates under corporations law.
• No personal liability protection provided by law.

Sole Proprietorship --  Go to Startup!

• For-profit only.
• May only have one owner.
• Company operated under business franchise registration requirements.
• No personal liability protection provided by law.
• Profits taxed as individual income.
• Biennial renewal of business license required.

Unincorporated Non-Profit Association --  Go to Startup!

• Non-profit only.
• Limited to types of small community or charitable groups specified by law.
• Business registration as non-profit required.
• Provides some personal liability protection to members.
• Registration of agent of process required.