LLC Annual Report and Tax Filing Requirements in West Virginia

A limited liability company (LLC) is a popular choice for many business owners. An LLC gives owners limited liability for business debts and it provides flexible management and tax structures. But if you want to run an LLC, you'll need to keep your business in good standing with the state.

In West Virginia, you'll need to file an annual report for your LLC and file and pay certain business and employer taxes. This article covers the most important ongoing reporting and state tax filing requirements for West Virginia LLCs. (If you want information about other states' LLC requirements, see our article on LLC tax and filing requirements.)

West Virginia LLC Annual Report

If you have a West Virginia LLC, you'll need to file an annual report for your LLC with the West Virginia Secretary of State (SOS). You can file your annual report online through the WV One Stop Business Portal.

The annual report is due each year by June 30. For LLCs formed on January 1 or later, the initial report is not due until the following calendar year. As of 2023, the annual report filing fee is $25.

State Business Taxes in West Virginia

When it comes to income taxes, most LLCs are considered "pass-through tax entities." By default, multi-member LLCs are considered partnerships, and single-member LLCs are considered disregarded entities. With a pass-through tax entity, the responsibility for paying federal income taxes passes through the LLC itself and falls on the individual LLC members. In other words, the LLC doesn't pay taxes on its income. Only the LLC members pay taxes on their share of the LLC's income.

As an LLC member, you'll file a personal tax return and pay your share of the LLC's taxes to the West Virginia Tax Division. You can use MyTaxes to file and pay your taxes.

Must pay a business registration fee. West Virginia imposes a business registration tax on LLCs when they're first formed. Before you do business in West Virginia, you must register with the Tax Division. You can register with the Tax Division along with the SOS through the One Stop Business Portal. When you register, you must pay a $30 business registration fee to the Tax Division unless your business is exempt. In exchange for paying the tax, your LLC will be issued a business registration certificate.

No franchise tax. Some states impose a tax or fee on LLCs and other business entities for the privilege of doing business in the state. This particular tax is often called a "franchise tax." West Virginia doesn't have a franchise tax.

Electing corporate tax status. While LLCs are usually taxed as partnerships by default, you can choose to have your LLC taxed as a corporation for federal tax purposes. You can make this corporate tax election by filing IRS Form 2553 with the IRS. If you elect to have your LLC taxed as a corporation, your LLC will also be taxed as a corporation in West Virginia. As of 2023, West Virginia's corporate income tax is computed at a flat rate of 6.5% of taxable income. Use Form CNF-120 to pay the tax. You can learn more on the corporate income tax section of the Tax Division website.

Electing pass-through entity tax status. In West Virginia, pass-through tax entities, including LLCs, can elect to have their LLC taxed at the entity level. In this case, the LLC would pay income taxes on behalf of its members. LLCs that don't make this election must file and pay withholding tax for their nonresident members. You can make this pass-through entity tax election through MyTaxes.

West Virginia Employer Taxes

If your LLC has or plans to have employees, you must pay employer taxes to the federal and state governments. You should get your federal employer identification number (EIN) from the IRS to report and pay these taxes as an employer.

Withholding employee wages. As a West Virginia employer, you must withhold and pay employee income taxes to the Tax Division. You'll need to register your business to withhold taxes from wages and salaries and to pay the tax. You can register your LLC with the Tax Division through the One Stop Business Portal. Once you have your business registration certificate, you'll need to file withholding taxes periodically. Almost all employers will pay the tax monthly and file returns quarterly using Form WV/IT-101Q. Employers that withhold less than $600 annually only have to file and pay annually. You must also file Form WV/IT-103 to reconcile your LLC's tax withholding every year. For more details, see the withholding help and general information webpage on the Tax Division website.

Unemployment insurance (UI) tax. In addition to withholding taxes for employees, your LLC will probably need to register to pay state UI taxes to WorkForce West Virginia (WorkForceWV). You can register for these taxes online through the One Stop Business Portal when you register your business with the SOS and Tax Division. Each quarter, you must submit a Quarterly Wage and Contribution Report. You can submit your reports online using the Unemployment Compensation Employer System. For more details, read the navigate unemployment process webpage on the WorkForce WV website.

West Virginia Sales and Use Tax

Businesses that sell taxable goods or services to customers in West Virginia must collect and pay sales tax to the Tax Division. You must register your business to collect sales tax. You can register online through the One Stop Business portal. Your business registration certificate can be considered your sales certificate.

After you've registered your LLC with the Tax Division, you must make periodic sales tax payments. Depending on how much sales tax you collect, you must make payments and file a return either monthly, quarterly, or annually. You can file online using MyTax. Businesses that pay more than $25,000 in sales tax per year must file online.

You can read the sales and use tax section of the Tax Division website for more about this tax. This webpage also has links to the sales tax forms and frequently asked questions.

LLC Registration in Other States

Sometimes, a business owner will start an LLC in one state, but have business activities in other states. You might, for example, organize your LLC in West Virginia, but have business activities in Ohio. If your LLC does business in a state outside of West Virginia, then you could need to register as an out-of-state (foreign) LLC in that state.

Every state has rules for when an out-of-state business must register to do business within the state. In general, you probably need to register as an out-of-state LLC if you have a physical presence in a state, hire employees in the state, or advertise directly to residents of the state. You should check the relevant state's laws around qualifying as a foreign business.

Consult our state guide to qualifying to do business outside your state to determine whether you need to register your LLC in another state.

More Information About West Virginia LLCs

West Virginia's One Stop Business Portal has a lot of information and resources for small business owners. The portal has quick access links to the Business Startup Wizard, MyTaxes portal, and the SBDC West Virginia website. You can also find useful topics on how to plan, start, operate, and expand your business.

If you'd like further guidance on running your LLC, check out the various articles in the LLC section of our website. If you want answers to legal questions specific to your business or are generally looking for more professional help, consult a West Virginia business lawyer.