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, which covers the Article of Organization.
- You must get a business license in West Virginia for $30 to set up an LLC within the state.
- Your employer identification number (EIN) is important since it proves that your LLC exists in West Virginia.
How Much Does An LLC Cost In West Virginia?
An LLC in West Virginia costs $125, which covers the Article of Organization needed to establish your business in the state.
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.
West Virginia LLC Filing Fee
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.
West Virginia Registered Agent Service Fee
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.
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 case your business is incorporated in West Virginia, does business, or participates in certain other activities in the state, you may have to file an annual West Virginia State Corporation tax return.
The Corporation Net Income Tax is a tax on the West Virginia taxable income of every domestic or foreign corporation which enjoys the benefits and protections of the government and laws in the state or derives income from property, activity, or other sources in West Virginia.
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 must file a combined report, which includes all information about every business engaging with the corporation. [1]
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 the list of other LLC filing costs you might incur while setting up your LLC in West Virginia.
1. Sales And Use Tax
The sales and use taxes in West Virginia are divided into accelerated sales and use payment and combined sales and use tax.
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 subject to sales and use tax unless an exemption is provided.
2. Name Reservation
According to West Virginia law, you can reserve a name for your LLC by applying to the Secretary of State for filing, which costs $15 [2].
The application must contain your name and 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.
3. 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.
4. 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.
5. 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 with your PC.
6. 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.
Division of Labor may require you to submit other special licenses depending on your business activities.
FAQs
Do I Need to Pay Tax For An LLC In West Virginia?
Yes, you need to pay 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 agency that handles business licenses in West Virginia is the West Virginia Division of Labor. 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?
Yes, 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.
Do You Need Professional Help With Your LLC In West Virginia?
West Virginia is among the most affordable states for LLC formation, with a filing fee of $125.
Although the filing process is not too hard, there are some documents and taxes you may not be informed about well enough.
When creating an LLC in West Virginia, you should seek the guidance of LLC formation services.
These are some of the best LLC formation services in West Virginia that will help you start your business easily.
References:
- https://tax.wv.gov/Business/CorporateIncomeTax/Pages/CorporateIncomeTax.aspx
- http://www.wvlegislature.gov/wvcode/chapterentire.cfm?chap=31D&art=4§ion=403
