West Virginia LLC Taxes

A low cost of living and abundance of natural areas make West Virginia a popular spot for new businesses. Yet, as more business owners choose to start their ventures in the state, many may find it challenging to understand the business taxes involved. 

Regardless of the size of your business, if you operate a limited liability company (LLC) in West Virginia, you’ll need to stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand which taxes you must pay for your West Virginia LLC.

Recommended: Schedule a free consultation with an accountant to stay on top of your taxes. 

West Virginia LLC Taxes Owed

LLCs benefit from pass-through taxation, which means the business’s profits pass through to its members’ individual tax returns. As a result, your LLC itself doesn’t pay taxes to the federal government or the state of West Virginia. Instead, LLC owners must pay taxes on their portion of the income generated by the LLC. 

In West Virginia, LLC owners can expect to pay the following taxes:

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%. 

Federal Income Taxes

Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year. 

West Virginia State Taxes

Each state has its own laws that dictate how it taxes individuals and businesses. Below are some important state-level taxes likely to affect your West Virginia LLC.

West Virginia Income Taxes

The state income tax rate for West Virginia is 6.5%. That’s fairly average when compared to state income tax rates in other states.

West Virginia Sales and Use Tax

West Virginia’s state sales tax rate is 6%. You’ll likely experience higher rates, however, due to local sales taxes in some counties and cities. West Virginia’s average local sales tax rate is 0.55% making the combined average 6.55%.

Register for a Business Registration Certificate

If your business sells taxable goods or services, you must register for a business registration certificate — otherwise known as a state business license. Registration costs $30, and you can  obtain this certificate from the West Virginia State Tax Department. 

Visit the West Virginia Tax Division website for more information.

Additional State Taxes

The West Virginia Tax Division oversees the collection of various state-specific taxes businesses may have to pay, depending on their location, industry, and number of employees. Some examples of these additional taxes include:

  • Beer and Wine Tax
  • Fuel Tax
  • Soft Drink Tax
  • Tobacco Tax

To learn more, visit the West Virginia Tax Division website.

West Virginia Local Taxes

The local laws and ordinances in one West Virginia county or city likely will vary from those in another. Regardless of where you live in West Virginia, check with your local jurisdiction to ensure your business obtains the proper local permits and follows any local regulations that may impact its operations.

West Virginia LLC Compliance

You must obey West Virginia’s state and local laws in order to maintain your business in good standing. While LLCs technically don’t file taxes with the state, West Virginia LLCs must still file an annual report each year.

West Virginia LLC Annual Report

All West Virginia LLCs must file an annual report with the West Virginia Secretary of State. You must file this online, and the filing fee is $25.

Annual reports are due between January 1 and June 30 each year. If you miss the due date, you’ll incur a $50 late fee on top of the $25 filing fee.

Should you fail to file an annual report four years in a row, the state can shut down your LLC with an “administrative dissolution.” If this happens, you can reinstate your LLC by paying a $200 reinstatement fee and filing Articles of Reinstatement by mail. You can’t do this online; it must be done by mail.

For more information, check out our West Virginia LLC Annual Report guide.

LLC taxes are complex. While our guide can provide you with important information, we recommend you schedule a free consultation with an accountant to ensure you handle your business taxes correctly.