If you are interested in starting a new business in West Virginia, then a Limited Liability Company (LLC) might be the best way.
LLCs are beneficial because they shield business owners’ personal assets. Starting an LLC in West Virginia can also benefit young entrepreneurs and military veterans.
You will discover everything you need to know about starting a business and forming an LLC in West Virginia.
|State||West Virginia||Virginia||Pennsylvania||Ohio||US Average|
|LLC Filing Fee||$100||$100||$125||$99||$130.38|
|LLC Annual/Biennial Fee||$25 (every year)||$50 (every year)||$70 (every 10 years)||$0 (no fee and no information report)||$89.34 (every year)|
|Corporate Tax Rate||6.50%||6.00%||9.99%||0%*||5.60%|
|Nominal GDP per capita||$49,017||$68,483||$64,751||$62,517||$64, 773.08|
Before You Set Up An LLC In West Virginia
An LLC (limited liability company) is a type of business structure that provides limited liability protection, tax savings, and administrative freedom.
To form an LLC in West Virginia, you must file Articles of Organization. However, naming your LLC and designating a registered agent are the first measures you will need to complete.
How Much Does It Cost To Start An LLC In West Virginia?
If you are wondering how to start an LLC in West Virginia for free, you’ll be disappointed. You can’t form an LLC in West Virginia for free, but the process is very cost-effective.
Furthermore, the state’s legal fee is as low as one can imagine. The fee structure provided is as follows:
- The $100 filing fee with the West Virginia Secretary of State’s Business and Licensing Division. The online fee is $101.
- If you need to speed up the incorporation process, you will need to pay for expedited services. This costs $25 for the next day, $250 for two hours, or $500 for one hour. The state otherwise takes 5-10 business days to process Articles of Organization.
- The fee of the processing agent may vary from agent to agent.
Steps To Start An LLC In West Virginia
The process of starting an LLC is relatively easy. It is not always complicated to complete your WV LLC application.
In West Virginia, there are six critical stages to establishing an LLC. To fulfill all legal criteria, you will first have to register with many state agencies.
Furthermore, you will begin by enlisting with the Secretary of State’s office in West Virginia. Afterward, you will need to file an application to the Department of Revenue.
Based on company operations as well as where your operations will take place, you may require any additional licenses and permits. All of these stages will be important for the formation of your WV LLC.
Pick A Name For Your LLC
Naming your LLC is the very first step you take for company creation. If you are confused about choosing a name from your shortlisted names, now is the time to decide the name for good.
State law has the authority to allow the naming of businesses in West Virginia, so make sure the name you have chosen for your West Virginia LLC satisfies the required criteria. The requirements are:
- The name would have to be distinct from any other business that’s already been registered with the government. To see whether your name is available, you will need to visit the official website. The website has a section named “Business Organization Search” that contains detailed instructions related to name availability and type.
- Your LLC’s name cannot feature any words that could be misinterpreted by a government department (FBI, Treasury, State Department, etc.).
- The name must be distinguishable from any other name that has already been registered or reserved.
- “Limited Liability Company,” “Limited Company,” “L.L.C.,” “LLC,” “L.C.,” or “LC” has to be at the end of such name of the company. “Ltd.” and “Co.” also are acceptable forms for “Limited” and “Company,” correspondingly.
Find An Agent Of Process In West Virginia
Selecting an Agent of Process is an essential key to running a limited liability company. In some states, an Agent of Processing is actually a Registered Agent. If you don’t designate an Agent of Processing, the Secretary of State will do so on your behalf, and you will receive any legal summonses that could be served on your company.
An Agent of Process is a person or an organization who collects essential documents, including tax forms, legal documents, lawsuit notifications, and official government correspondence on your behalf. Imagine your Agent of Process as your corporation’s point of contact with the government.
While creating an LLC in WV, an Agent of Processing must be a West Virginia resident. It can also be a corporation allowed to be doing business in West Virginia, including a registered agent service.
Furthermore, you can select somebody from your company, including yourself. Therefore, it’s really up to you to choose an agent of processing for your LLC.
|ZenBusiness – $49 + state fees to register your LLC (read review)|
|Incfile – $0 + $50 state fees to register your LLC (read review)|
Articles Of Organization
You will have to file Form LLD-1 Articles of Organization with the Secretary of State to register your West Virginia LLC. Additionally, you can send your request online, by mail, fax, email, or in person.
The form is extensive. You are required to provide:
- Company name
- LLC Type
- Principal office
- Mailing address
- Designated office
- Registered agent name and address
- Business email
- Official website
- Organizer name and address
- Pages attached
- Contact person
- Other requirements
An operating agreement is not mandatory in West Virginia upon forming an LLC. However, it is a wise idea to have one.
An operating agreement is a legal document that specifies an LLC’s ownership and operational procedures. A detailed operating agreement ensures that all business owners are on the same page and reduces the likelihood of future disagreement.
Get An EIN
EIN is an abbreviation for Employer Identification Number. The Internal Revenue Service (IRS) offers EINs to businesses to enable them to be recognized for taxation purposes. It’s essentially a business’s equivalent of a Social Security number.
Getting an EIN is included in the registration phase on the West Virginia One Stop Business Portal if you are establishing your LLC online. A Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN) is another name for an EIN (FTIN).
An EIN is necessary for the following purposes:
- Open a bank account for your business
- Filing of Taxes
- Management at the federal and state levels
- The hiring of workers
Sole proprietorship businesses also have EIN. When changing to an LLC, the IRS requires a sole proprietorship to get a new EIN. The IRS shall provide you with an EIN for free.
The Forms You Need To Register An LLC In West Virginia
Request an EIN number IRS from the official website.
These are the only mandator forms to start an LLC in West Virginia.
|Did You Know?|
West Virginia is home to the snow hill salt company of Charleston which was incorporated on December 30, 1876.
LLC Taxes In West Virginia
Here in West Virginia, like the majority of states, a corporate income tax levies. To pay the tax, you will have to complete Form CIT-120.
The United States has a three-tiered income tax system, with federal, state, and local governments all imposing taxes. In that they apply a percentage rate to taxable incomes, federal and state income taxes are similar.
They differ substantially, though, in terms of those rates or how they’re applied, as well as the types of income that are taxed and the deductions and tax credits that are available.
“Federal” taxes would be those paid to the federal government, whereas “state” taxes would be those paid to the state. While federal taxes are the same in all states, state taxes fluctuate.
The federal tax rate in WV is 15.3%. However, the state taxes for corporations are at 6.5%.
In West Virginia, starting a business is a smart decision. Since 2005, more than $13 billion has been invested in new businesses in the state.
In a poll done by the Tax Foundation in 2019, its company tax climate has ranked 19th. West Virginia is a great state to start a new business since it doesn’t require a lot of money to do so.
How Long To Form An LLC In West Virginia?
If you file online, you can form an LLC in West Virginia in 5-10 business days (or 3-4 weeks if you file by mail). You can pay for accelerated processing if you really need your West Virginia LLC sooner.
How Much Does It Cost To Run An LLC In West Virginia?
The total cost varies from situation to situation, depending on your needs. The online processing fee is $101. However, if you submit documents physically, the fee is $100. The total range of forming an LLC varies from $130 to $220.
What To Do After Formation?
After LLC formation, there are a few more required steps you need to perform for the smooth operations of your business. These steps are crucial as they add value to the business and ensure all legal requirements get fulfilled.
- Create a logo: Logo creation is necessary for the identification of your business. It is the badge of the LLC.
- Build a website/e-commerce store: Building a website is a huge step toward establishing credibility for your organization. Every corporation needs a website. If you don’t have a website, you’re missing out on a considerable part of potential customers and economic benefits.
- Bank account: You need a separate bank account for your LLC to conduct business. That account should be separate from your personal account.
- Business insurance: Business insurance concentrates on expanding your LLC despite managing risks. The most popular forms of company insurance include general liability insurance and professional liability insurance.
- Annual reports: LLCs must file yearly accounts with the Secretary of State in West Virginia. These accounts can be provided online.
Hence, after-formation processes are also necessary for successful business for an LLC.
Resources To Start A Successful LLC In West Virginia
Start Marketing Your LLC In West Virginia
You can learn everything you need to know about marketing in our ultimate guide to business marketing.
The guide will teach you how to plan and manage a successful marketing campaign for your newfound LLC business.
You can also check our other blog posts for valuable marketing tips, hacks, and tricks to help you run marketing campaigns
How To Dissolve An LLC In West Virginia
Sometimes, your business reaches the point where it is time to close it and cease all operations. In that case, you will want to properly dissolve LLC to limit your liability for lawsuits and government fees. To dissolve an LLC, you would be required to follow these steps:
- Vote to dissolve LLC
- File the proper Articles of Dissolution with the state
- If necessary, get a tax clearance
- Close your business
The article has answered all the relevant concerns on how to start an LLC in West Virginia. In West Virginia, conducting business under the umbrella of an LLC is much easier than compared to other business types.
The process of creating an LLC is much simpler, can be done online, and is cost-effective. Therefore, all you need to do is attach the required documents and operate.