How Much Does an LLC Cost in West Virginia (Formation Fees)
If you want to set up a limited liability company (LLC) in West Virginia, you should be aware of the resources and costs it would take.
To help you with this, our team of experts spent months researching the requirements and costs of starting up an LLC in West Virginia, and their findings show that it is a simple process.
This article will provide detailed information on how to set up an LLC in West Virginia.
Quick Summary
- An LLC in West Virginia costs $125, and it covers the Article of Organization.
- You must get a business license in West Virginia for $30 to set up an LLC within the state.
- Small businesses in West Virginia saw a net increase of 18,454 jobs, as per the U.S. Small Business Economic Profile, reflecting a growing environment for new enterprises.
- With over a decade of LLC formation experience, what I found extremely handy was having to opt for expedited filing.
Cost to Start an LLC In West Virginia
In my personal experience, establishing an LLC in West Virginia came with a price tag of $125, which handled the crucial Article of Organization required to kickstart my business here.
This aligns with the backdrop of economic activity, where sectors like Healthcare and Social Assistance, Retail Trade, and Accommodation and Food Services collectively employed 310,580 individuals in 2022, as per Ibis World, indicating a robust market for new businesses [1].
This number may be higher, especially if you factor in other services and documents you apply for while setting up your business in West Virginia.
As you read further, we will share additional costs you can incur when establishing an LLC in West Virginia.
1. LLC Formation Filing Fee ($125 - Mandatory)
The West Virginia LLC fee is $125, covering the costs of the Article of Organization.
Remember that this fee can be waived if you qualify as a veteran-owned organization or are eligible for the Young Entrepreneurs Act Waiver.
Also, you can choose to go for either mail or online filing, and the division will do them within 5–10 business days from the date they receive the filing fee.
What I found extremely handy was having to opt for expedited filing. Although you don’t have to check it, it is useful if you have to start a business in a one-day period.
The filing fee for forming an LLC in West Virginia is typically a one-time expense paid when you initially file the Articles of Organization to establish your LLC. However, it's important to note that there are other ongoing costs associated with maintaining an LLC in West Virginia.
2. Registered Agent Fee ($49–$100 - Optional)
You will need a registered agent within the state to register your West Virginia business.
This agent will be responsible for accepting services of process and handling legal correspondence on behalf of your company.
Typically, using professional registered agent services in West Virginia will cost around $49–$100 annually.
However, if you think the fee is too high, you can become your agent.
Remember that you must be a West Virginia resident and satisfy other conditions required for a registered service agent within the state.
From my experience, it was far more beneficial to hire a registered agent than to do it on my own; it simply cut on time, gave me an extra layer of support and helped me create more effective steps.
3. Name Reservation ($15 - Optional)
In my own LLC setup process, I found that according to West Virginia law, reserving a name for your LLC involves applying to the Secretary of State for filing, which comes at a fee of $15 [2].
The application must contain your name, address, and the business name you intend to reserve.
If the Secretary of State finds that the business name you applied for is available, they will reserve it for your exclusive use for a non-renewable 120-day period.
You first need to look up an LLC in West Virginia to find out if your preferred business name is available.
West Virginia Corporation Net Income Tax
If you decide your LLC will be taxed as a corporation, you must pay a corporation net income tax.
In terms of filing status, you will also have to decide between separate entity-based and combined unitary-based.
The separate entity base is used if you are filing a separate return and are not engaged in a unitary business with one or more other corporations.
For combined unitary-based corporations that are members of the same unitary business group, they must file a combined report, which includes all information about every business engaging with the corporation, as stated in the West Virginia Tax Division webpage [3].
This report must be filed with each member’s separate return unless the group elects to designate a corporation as surety and file a group combined return.
Other LLC Filing Costs
Below is a list of other LLC filing costs you might incur while setting up your LLC in West Virginia.
With small businesses in West Virginia experiencing a net increase of 18,454 jobs, as per the U.S. Small Business Administration, the economic landscape seems promising for new LLCs, particularly in understanding the significance of job creation and economic development [4].
1. Sales And Use Tax
The sales and use taxes in West Virginia are divided into accelerated sales and use payments and combined sales and use taxes.
The accelerated sales and use payment is due by June 20 for taxpayers whose average monthly payment of sales and use tax for the previous calendar year (or a portion of a year if they were not in business for the entire year) is $100,000.
The accelerated payment is the tax attributed to the first 15 days of June. The remainder of the June liability is due by July 20th.
In combined sales and use tax, all sales of goods and services are presumed to be subject to sales and use tax unless an exemption is provided.
1. DBA
DBA is known as a “trade name” in West Virginia, and you will have to pay a filing fee of $25 if you wish to get a trading name for your business.
To achieve this, you will have to submit your application with a custom order request form to the Secretary of State in West Virginia.
Once you have done that, you can choose any processing service.
2. EIN
An employer identification number (EIN) is a tax number issued by the Internal Revenue Service (IRS) to identify a business entity.
Most businesses in West Virginia require an EIN, including an LLC. You can apply for an EIN through the IRS website for free and get it immediately.
Once your EIN has been given to you by the IRS, you can then register your LLC with the appropriate state agencies.
3. Certificate Of Existence
You can purchase a certificate of existence in West Virginia for just $10 and show that your business is active and functional under the law.
The payment can only be made with a credit card, and it comes with some features, such as the ability to view and print your certificate on your PC.
"A Certificate of Existence can be sought by banks, prospective business partners, or various entities to verify the authenticity of your enterprise."
- Delina Yasmeh, J.D./Tax LL.M, Distinguished Expert in Mergers & Acquisitions
4. Business License
Before engaging in any business within the state, you will need to obtain an LLC business license in West Virginia for $30 via the “WV One Stop Business Portal,” after which you will be given a business registration certificate.
The Division of Labor may require you to submit other special licenses depending on your business activities.
Related articles:
- Changing an LLC name in West Virginia
- How to Dissolve an LLC in West Virginia
- How to File LLC Taxes in West Virginia
FAQs
Do I Need to Pay Tax For An LLC In West Virginia?
You need to pay a tax for an LLC in West Virginia called business registration tax, which costs $30 and is paid to the West Virginia state tax department.
What Agency Handles Business Licenses In West Virginia?
The West Virginia Division of Labor is the agency that handles business licenses in this state. They are responsible for different types of licenses and permits within the state.
Do You Have to Pay an Annual Report Fee for A West Virginia Foreign LLC?
You have to pay an annual report fee of $25 for a West Virginia foreign LLC in West Virginia. This annual report is to prove that your business is in good standing and is in compliance.
References:
- https://www.ibisworld.com/united-states/economic-profiles/west-virginia/
- http://www.wvlegislature.gov/wvcode/chapterentire.cfm?chap=31D&art=4§ion=403
- https://tax.wv.gov/Business/CorporateIncomeTax/Pages/CorporateIncomeTax.aspx
- https://advocacy.sba.gov/wp-content/uploads/2023/11/2023-Small-Business-Economic-Profile-WV.pdf
