Create an LLC in West Virginia

Quick facts about forming a West Virginia LLC

Item	Details
State Filing Fee (Articles of Organization)	$100
Online Processing Fee	$1
Processing Time	5-10 business days; expedited service available for a fee
Annual Report Fee	$25, due each year between January 1 and June 30
Agent for Service of Process	Optional but recommended (a West Virginia resident or a business authorized in the state)
State Franchise Tax	None for LLCs
Business License	Most businesses need a $30 Business Registration Certificate from the State Tax Department
Managing Authority	West Virginia Secretary of State, Business & Licensing Division

How to start an LLC in West Virginia in 6 steps

If you’re thinking of forming an LLC in West Virginia, there are benefits to consider with this type of business entity. For starters, its profits pass through to the owners by default, so it avoids the double taxation that corporations face.

LLCs combine features of corporations, sole proprietorships and partnerships. The main advantage of forming an LLC over partnerships and sole proprietorships is that it separates business liabilities from personal assets with limited liability protection. However, it’s important to note that the protection is not guaranteed and depends on maintaining proper business conduct. 

Members of certain licensed professions can form a Professional Limited Liability Company (PLLC). Every member must hold a current license, and the filing includes a verification of eligibility from the licensing board.

There are six main steps to register an LLC in West Virginia:

1. Name your West Virginia LLC
2. Choose your registered agent
3. File articles of organization
4. Create an operating agreement 
5. Apply for an EIN
6. Obtain a Business Registration Certificate

Below, you’ll find a detailed explanation of each step and a short video to walk you through establishing your own LLC in WV.

Step 1: Name your West Virginia LLC

West Virginia has specific rules about naming your business. Most are either the same or similar to rules in other states. In West Virginia, choosing a business name is the first step.

You must carefully follow the rules established by the West Virginia Legislature for naming your business. Specifically:

• The name you choose must be distinguishable from any other business name in the state. The Secretary of State maintains a database of all business names in the state. You need to do a West Virginia business entity search: enter the name you want and see if a West Virginia business already uses it. A name that’s too close to an existing one is a common reason for rejection
• If the name you want for your business is not distinguishable from another business in the state, you can apply to the Secretary of State for permission to use the name and, if established criteria are met, you may be able to use it
• Your name must include one of these phrases: “Limited Liability Company” or “limited company” or one of these abbreviations: “LLC” or “L.L.C.” or “LC” or “L.C.” You may also abbreviate “limited” as “Ltd” and “company” as “Co.”
• Avoid corporate endings such as “Corporation” or “Inc.”, and expect extra review for words like “bank” or “insurance” that are regulated by other state agencies

Naming your professional limited liability company

Members of certain professions may form a Professional Limited Liability Company (PLLC). Only members licensed or otherwise legally authorized may be a member of the PLLC. The same rules that apply for naming an LLC apply to the naming of a PLLC, except that a PLLC name must end with “Professional Limited Liability Company”, “P.L.L.C.”, “PLLC”, “Professional L.L.C.” or “Professional LLC”.

Professions that can form a PLLC are:

• Attorneys
• Dentists
• Accountants
• Architects
• Land surveyors
• Chiropractors
• Social workers
• Physicians and podiatrists
• Optometrists
• Veterinarians
• Engineers
• Osteopathic Physicians and Surgeons
• Psychologists
• Acupuncturists

When you file, you’ll list the PLLC’s members and attach a verification of eligibility from the licensing board.

Step 2: Choose a registered agent

West Virginia law lets an LLC name an agent for service of process, often called a registered agent. It’s optional but recommended: if you don’t name one, legal papers go to the Secretary of State, which forwards them by certified mail. You can be your own West Virginia agent for service of process if you live in West Virginia.

If you name an agent, you provide the agent’s name and a physical street address in West Virginia where service of process can be made. The agent must be a West Virginia resident, a domestic corporation, another LLC, or a foreign corporation or company authorized to do business in West Virginia.

You can also hire a professional registered agent service. These typically cost $50–$300 per year; Tailor Brands’ registered agent service is $199 per year.

Step 3: File articles of organization

An LLC in West Virginia is formed by filing articles of organization. The form asks for:

• Your LLC’s name
• Whether it’s an LLC or a professional LLC
• For PLLCs: You must attach verification of eligibility from the state professional licensing board. This proves that each member has a valid license to practice their profession and that the license is current
• Your principal office and designated office addresses
• Your agent for service of process (name and address), if you name one
• An email address for state notices
• Each organizer’s name and address
• Whether it’s an at-will or term company
• Whether it’s member-managed or manager-managed, with the names and addresses of all members or managers
• Whether any members are liable for the company’s debts
• Your business purpose, for example “commercial painting” or “professional practice of law”

State fees

There are quite a few state fees you must pay to begin your LLC and be ready to operate it as a business entity. Some of the West Virginia LLC cost considerations include:

Articles of organization: The fee for filing the Articles of Organization is $100. If you have an LLC formed in another state and want to register it in West Virginia, the fee is $150. Standard processing takes 5 to 10 business days.

Online processing fee: $1 for filings made online.

Reservation of business name: $15 (holds the name for 120 days).

DBA (trade name, if required): $25 for each DBA registered.

You can expedite the processing by paying the following fees:

• 24-hour processing: $25 fee
• 2-hour processing: $250 fee
• 1-hour processing: $500 fee

Pay an extra $15 for a certified copy of your Articles of Organization.

Veteran-owned businesses don’t pay the $100 filing fee or the annual report fee for the first four years.

Rules and regulations change now and then. This may not be a complete list, so check with the office of the West Virginia Secretary of State before submitting your application to be sure you have covered all the fees. If a required fee does not accompany the application, the registration of your LLC will be delayed.

Annual report: Filing a WV annual report is mandatory for your LLC. The fee is $25, due between January 1 and June 30 each year. For veteran-owned LLCs, the annual report fee is waived for the first four years.

There is a $50 late filing fee. If a report is more than 60 days late, the Secretary of State can administratively dissolve your LLC.

How to file

You can file your articles of organization online through the One Stop Business Portal and pay by card.

If you prefer to file the documents in person or by mail, you can download the form and fill it out.

If mailing the articles of organization, you can send them to any Secretary of State hub office:

• WV One Stop Business Center
  13 Kanawha Blvd. W., Suite 201
  Charleston, WV 25302
• North Central WV Business Hub
  153 West Main Street, Suite G, Third Floor
  Clarksburg, WV 26301
• Or mail to: Secretary of State
  Capitol Building
  Charleston, WV 25305

You can also file in person at either office. Call (304) 558-8000 first to check hours.

Step 4: Create an operating agreement

West Virginia doesn’t require a West Virginia LLC operating agreement, and state law says it doesn’t have to be in writing. A written agreement is still highly recommended. 

A good operating agreement should cover:

• Any verbal agreements among the members, put in writing
• Rules that replace West Virginia’s default rules, so you don’t fall back on them in a dispute
• Statement of how profits and liabilities will be distributed among the members
• The rights, roles and responsibilities of each member
• Statement of how decisions will be made in general and how they will be made in case of conflict among the members
• Statement of how the ownership interests will be determined if an owner/member wants to leave the LLC, gets divorced, or declares bankruptcy
• What happens if the owner wants to dissolve the LLC

Step 5: Apply for an EIN

You’ll need an employer identification number (EIN) from the IRS if your LLC has employees or more than one member.

Applying for an EIN is fast and free. You can apply online on the IRS website, or file Form SS-4 by fax or mail. You will need to answer specific questions about your LLC and provide the Social Security number or ITIN of the LLC’s responsible party.

Although you can apply yourself, you can also apply for an EIN with Tailor Brands.

Your EIN will be used for all tax and business purposes. Some ways you will use this number include:

• Opening your business checking account
• Separating your personal and business banking accounts and tax returns
• Building credibility with vendors
• Filing your LLC federal and state tax returns
• Issuing 1099s to any independent contractors who do work for the LLC

Even if you’re not required to obtain an EIN, there are personal benefits to using an EIN instead of just using your SSN. These include:

• Avoidance of personal identity theft
• Ability to open business banking accounts
• Adds credibility to your business
• Allows you to use 1099s when paying independent contractors
• The EIN will be in place when you later hire employees

Step 6: Obtain a West Virginia Business Registration Certificate

Most West Virginia LLCs must obtain a Business Registration Certificate before they begin operating in the state. The certificate is issued by the West Virginia State Tax Department, and almost every business needs one before it starts doing business in West Virginia.

To obtain the certificate, your LLC must submit a Business Registration Application (Form BUS-APP) through the West Virginia One Stop Business Portal or by filing directly with the State Tax Department. The application asks for basic business information, including your EIN, ownership details, business structure, and a description of your activities. Once approved, the State Tax Department issues your certificate. Keep it at your place of business.

The cost for the Business Registration Certificate is $30, paid at the time of application. The certificate remains valid as long as your LLC stays in good standing with the state, and it does not require annual renewal. You’ll need a new certificate if your business changes its name, location or ownership. If your LLC falls behind on tax filings, the certificate can be revoked, and you’ll need to resolve the outstanding issues before reactivation.

What to do after you create a West Virginia LLC

Now that you’ve formed your LLC, there are a few more things to do. You can also look into West Virginia small business grants to help with startup costs.

Open a separate business bank account

It is important that you have separate personal and business accounts. To open an LLC bank account, you will need:

• Your EIN
• Your business formation documents
• Any ownership agreements
• Your valid business license

You may need more than one business account. Recommendations are that you have:

• A checking account specifically for the business
• A savings account for reserves and taxes
• At least one credit card in the name of the business
• Merchant service accounts so you can accept charge cards and debit cards from customers

It’s highly advised to never commingle business and personal accounts. Pay all debts and taxes for the business from the business accounts. This includes payments to LLC members, to all independent contractors, and legal fees for the LLC. Any payment to the registered agent must be made through the LLC.

Understand your ongoing annual LLC fees

You must file an annual report with the West Virginia Secretary of State. The annual report costs $25 and is due between January 1 and June 30. Late reports cost an extra $50, and if a report is more than 60 days late, the state can administratively dissolve your LLC.

Obtain relevant business licenses and permits

In addition to complying with all federal and state requirements, check with your municipality. It may have specific permit requirements for the type of business for which you formed your LLC. You can also check what common West Virginia licenses cost.

All West Virginia employers are required to maintain workers’ compensation insurance for their employees. There are other insurance requirements for different types of business. You can find the insurance requirements for West Virginia employers and businesses in general at the West Virginia One Stop Business Portal. 

Comply with West Virginia’s tax requirements

West Virginia LLCs are taxed at both the state and federal levels depending on how the business earns income and whether it has employees. While the state does not impose a separate franchise tax on LLCs, you’ll still have several tax obligations through the West Virginia State Tax Department. Staying compliant ensures your LLC remains in good standing and avoids penalties.

Income tax

West Virginia LLCs do not pay a separate state income tax at the entity level unless the LLC elects to be taxed as a corporation. By default, LLC profits pass through to the members, who report the income on their personal state tax returns. West Virginia uses a progressive income tax system, with current individual rates ranging from 2.11 percent to 4.58 percent depending on income. If your LLC elects corporate taxation, West Virginia’s corporate net income tax rate is 6.5 percent.

Sales tax

If your LLC sells taxable goods or certain services, you must collect and remit West Virginia sales tax. The state rate is 6 percent. Municipalities can add up to 1 percent, for a combined rate of up to 7 percent. You must register for a Sales and Use Tax Account through the West Virginia State Tax Department before collecting tax. Not all goods are taxable, so check the state’s list of exemptions if you’re unsure.

Self-employment tax

Members of an LLC taxed as a partnership or sole proprietorship generally pay self-employment tax to the IRS, which covers Social Security and Medicare contributions. West Virginia does not impose a separate state-level self-employment tax, but members must report business income on their West Virginia personal income tax returns.

Payroll tax

If your LLC hires employees, you’ll need to withhold federal income tax, Social Security, Medicare, and Federal Unemployment Tax (FUTA). At the state level, employers must register for West Virginia withholding tax and file returns on a monthly or quarterly basis depending on payroll size. You must also pay into West Virginia Unemployment Insurance, which is administered through Workforce West Virginia.

Other state taxes

Depending on your industry, your LLC may be subject to additional state taxes such as excise taxes, contractor licensing taxes, or motor fuel taxes. Because tax obligations vary widely by business type, it’s wise to work with an accountant or tax professional to confirm which state and federal taxes apply to your LLC.

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