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Business Information & Rankings

• West Virginia is the largest producer of oil and natural gas east of the Mississippi River. The state ranks 33rd in the nation for oil production and 11th for natural gas production. It also ranks 2nd in coal production.
• West Virginia has the 7th lowest cost of living rate in the U.S. (American Chamber of Commerce Researchers Association)
• West Virginia has the 6th lowest industrial electricity rate in the nation.

Cost of living

Crime Rate

West Virginia has the 7th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Taxed.

Corporate Income Tax
West Virginia’s corporate tax structure consists of a flat 9% rate on all corporate income. West Virginia also imposes a “Business Franchise Tax” of $0.70 per $100 of taxable capital, or a minimum of $50.

Personal Income Tax
West Virginia’s income tax system is composed of five brackets with a top rate of 6.5% starting at an income level of $60,000.

Personal Property Tax
West Virginia is one of the 38 states that collect property taxes at both the state and local levels. West Virginia does not impose a tax on intangible assets such as bank accounts, stocks or bonds.

State Sales and Use Tax
Base Rate: 6.00%
Machinery Rate: none

West Virginia provides a refund for services, machinery, supplies and materials directly used or consumed in the activities of manufacturing, etc.

Unemployment Insurance
West Virginia’s new employers’ rate is 2.7% for 3 years.

Will a start-up company in West Virginia achieve sustainable growth? What are the possible benefits of conducting business in this state? Economically, West Virginia has been quite strong and the Real Gross Domestic Product (GDP) in 2017 was $67.83 billion, which is quite a rise from the $62.16 billion in 2007. According to West Virginia Economic Outlook 2018-2022 Report published by Bureau of Business & Economic Research, the energy sector is considered an important driver of economic activity in the state. One of the key industries in the energy sector according to the report includes the natural gas industry, which peaked in terms of production growth by the end of 2014. One of the areas that the state economy excelled in is export where approximately $3.7 billion was generated through trading during the first two quarters of 2017.

Setting up an LLC or Corporation – Advantages

You can choose to register a new company in West Virginia as a Domestic Corporation, Foreign Corporation, Limited Liability Company (LLC’s), Non-Profit Corporations, and Limited Liability Partnership (LLP’s). Each type of business entity has its own set of advantages. Let’s look at the advantage of forming the most common forms of business entities.

Advantage#1: Salient benefits of Corporation or LLC formation

Corporation

• West Virginia Tax Credits: If you register a new business in West Virginia as a corporation, you can take advantage of the following tax credits:
  – Corporate Headquarters Relocation Credit: If you are planning to relocate your business or corporate headquarters to West Virginia and also create a minimum of 15 new jobs then you will be entitled to this tax credit. This is a non-transferable and non-refundable credit that can be used for offsetting up to 100 percent of occupation and business tax as well as corporate net income tax liability. You can benefit from this credit for a period of 13 years. Download Information and Application
  – Economic Opportunity Tax Credit: If you register a new company in West Virginia then you can avail of this tax credit. You will have help in creating a minimum of 20 new jobs and also make a qualified investment in a business facility. This will ensure an offset of up to 80% of the corporate net income tax that can be attributed to a qualified investment. Sample Application
  – High-Tech Manufacturing Credit: As a part of this tax credit, you will have to create a minimum of 20 new jobs and your business should be involved in manufacturing certain peripheral and computer equipment, semi-conductors, and electronic components. The benefit is that you will receive a tax credit that will offset 100% of the occupation and business tax as well as corporate net income tax for a period of 20 consecutive years.
• Change in Ownership: If you have formed an S Corporation in West Virginia then sale, purchase, as well as gifting of stock can facilitate changes in ownership. The changes can take place without disturbing the ability of the corporation to conduct its business.

LLC

Business Incentive Programs: If you register a new company in West Virginia as an LLC then there are a variety of business incentive programs that you can benefit from. These include, popular programs like:

• Energy Incentives: The state offers businesses a variety of energy incentives including Residential solar energy tax credit, Tax exemption and special property tax assessment for commercial wind energy and Sales tax exemption for ENERGY STAR products
• Community Development Incentive Programs: If you register a new business in West Virginia, you can take advantage of several programs being administered by The Department of Commerce and that includes grants like:
  – Small Cities Block Grant (SCBG)
  – Land and Water Conservation Fund (LWCF)
  – Neighborhood Stabilization Program (NSP)
• Sales & Use Tax Exemption: Your business can benefit from sales & use tax exemption in the state if it is offering the following sales and services:
  – Sales of radio or television broadcasting time
  – Magazine and newspaper advertising space for advertisement of goods and services
  – Construction, repair, alteration, decoration or improvement of real property
  – Sales of day care center services
  – Mobility enhancing equipment and prosthetic devices
  More Information
• Flexible Profit Distribution: A start-up company in Vermont which is an LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.

Advantage#2: Other Business Incentive Programs

West Virginia offers small businesses and medium or large enterprises a strong infrastructure that enhances business operations anywhere in the state. It is the wide variety of incentive programs that provides a start-up company in West Virginia a platform that helps businesses to achieve higher growth. Some of the popular program categories are:

• Incentive Programs in the Opportunity Zone: The Opportunity Zones (OZ) Program is just perfect for a start-up company in West Virginia or a business that is relocating to this state. In order to benefit from this program, you will have to establish your business in an Opportunity Zone in the state. This program has been implemented by the U.S. Department of the Treasury and the Internal Revenue Service (IRS). One of the benefits for businesses in this zone is the preferential tax treatment that they will receive and this will encourage growth and revitalize areas that are facing economic challenges. List of designated OZ
• Central Appalachia Empowerment Zone (CAEZ): If you register a new company in West Virginia then you can benefit from the “Empowerment Zone/Enterprise Community (EZ/EC) Initiative”, which is integral to CAEZ. You can benefit from several funding and tax incentives like the Small Business Micro Loan Program. Map of CAEZ Service Area

Are there any Disadvantages of Incorporating in West Virginia?

If you are wondering if there are any disadvantages if you register a new company in West Virginia then it is important to know that every state has its own advantages and disadvantages. Similarly, every business also has its own advantages and disadvantages or pros and cons. The disadvantages in the state of West Virginia are specific to the type of business entity you form. For example, a limited liability company has a “Limited Life” while the process of incorporation takes more time than other forms of organization.

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What do you require to establish your business in West Virginia? You need to register your business, business name, tax details etc., and you need to apply for a business license in West Virginia to make it operational in the state. However, it is important to know that you may require more than one license or permit or your business might not require a license at all.

Business licenses in the state can be broadly defined under 2 categories according to the state government:

• Regulatory licenses and permits
• Professional and occupational licenses and permits

Your business would fall under the “Regulatory licenses and permits” category if your business license is issued by different state agencies although the three most common types of regulatory licenses and permits fall under the following categories:

• Health and safety
• Environment
• Agriculture

A West Virginia company license in any of the above categories will be issued by the respective state agency like the Department of Agriculture (DOA), the Department of Health and Human Services (DHHS), or the Department of Environment Protection (DEP).

How do you apply for a license or permit? The only way you will be able to understand the process is through the “step-by-step” guide that we have created.

Step-by-Step Guide to West Virginia Business License Process

Step#1: The Industry or Business Type

How would you know what type of business or professional license is required to operate in West Virginia? The type of industry or the activities of a business entity helps in identifying the type of business license required. Different types of licenses and permits are issued by different state agencies or counties.

Let’s look at an example to understand this well.

General Construction or Contracting Business

• Licenses issued by: West Virginia Contractor Licensing Board
  If your business activity is in construction including and it includes Remodeling & Repair then you will be required to apply for a business license for the same. Along with the license application, you will need to submit a “West Virginia Division of Labor Wage Bond Status Affidavit”
• License Fee: $90
  Information and Application

Food Service Establishment and Food Manufacturer

• Licenses issued by: West Virginia Department of Health and Human Resources, Public Health Sanitation Division
  If you are planning to start a Food Service, Retail Food Establishment, or are planning to be a Food Manufacturer then you will need to apply for a business license in West Virginia.
• Fee – Food Manufacturers: The license fee varies according to the “gross sales” of the manufacturing facility like the fee for a facility having gross sales of $0.00 to $7,499, will be $35. Similarly, a facility with gross sales of $1,000,000 to $4,999,999 will have a fee of $600. Download Application
• Fee – Food Service and Retail Food Establishments: The fee for a permit will be dependent on the type of service or establishment like Mobile Establishment, Restaurant, Retail Food Store, Retail Food Store Specialty Department, and Bar or Tavern among others. Download Application

Step#2: Licenses issued by City/County

If your business or industry type doesn’t fall under a state-wide license then you will have to check with the local city or county office. A West Virginia company license can also be issued by local counties or cities in which the business is located. Let’s look at an example to understand how this works.

Fayette County

You will need to obtain a permit from the Fayette County Health Department to operate a food establishment.

The Requirements are as follows:

• Submit a Plan Review Report (Form SF-35)
• Submit an Application for a West Virginia company license or permit to operate a Food Establishment (Form SF-05)
• Completed forms have to be submitted with the fee at least 30 days prior to your planned opening date for the Food Establishment
• The Fee for food establishment permits will vary according to the seating capacity and the number of retail food stores.
• You will have to contact Fayette County Health Department office to identify the fee amount.

Step#3: Issuance of a Business License

How is a business license in West Virginia issued? You have to identify the following to complete the process:

1. The type of business or industry
2. Do you need a license or a permit?
3. Will it be issued by the state or the county?

Once you have identified the above, all you need to do is either download the application online or contact the concerned state department or city or clerk office.

It is important to note that a business license or permit will have to be renewed annually unless specific dates have been mentioned, to keep the business operational.

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Why form a West Virginia business? West Virginia is not only a thriving economy but it’s also home to more than 130 businesses represented in over 27 countries globally. This is where global leaders feel at home in the West and if you want to reach out to a global as well as national audience or customers then this is the place to be. The state has a strong distribution system that your business can leverage like river ports, major interstates, and a complete railroad system. Today, there are in excess of 30,000 West Virginians employed in international companies and local start-ups that have made their impact globally.

The big question is how do you go about company formation in West Virginia? This is where we can be of assistance!

We are one of the top West Virginia registered agents and are familiar with all incorporation processes pertaining to the West Virginia State. Thus, we can provide information and assistance for successful setting up of your business!

West Virginia LLC Registration and Formation

LLC company formation in West Virginia is governed by 2010 West Virginia Code, CHAPTER 31B – Uniform Limited Liability Company Act. The procedure for registration and formation of an LLC is as follows:

Step#1: Maintain a registered agent

If you are planning to form a Limited Liability Company in West Virginia then you will be required to designate and continuously maintain a registered agent in the state pursuant to 2010 WVC §31B-1-108. This law is applicable to domestic limited liability companies as well as foreign limited liability companies.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in West Virginia. We can assist you to form a West Virginia business LLC.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in West Virginia is identifying a name for your business entity. The process is as follows:

1. Identify an unique name for your business entity
2. According to 2010 WVC §31B-1-105, the name should contain the phrase or words “limited liability company” or “limited company” or the abbreviations “L.L.C.”, or “LLC”.
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
4. Apply for reservation of name pursuant to provisions of 2010 WVC §31B-1-106.
5. Submit the name reservation form at the Office of the Secretary of State- Business and Licensing Division through online or mail along with the applicable fee. You can reserve a name for a non-renewable 120 day period.
6. If your business is a foreign LLC then you will be required to register the name pursuant to 2010 WVC §31B-1-107 for an LLC.

Step#3: Articles of Organization and Certificate of Authority

If you are planning to form a West Virginia business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will have to file “Articles of Organization” governed by 2010 WVC §31B-2-203.
• If your business entity is a foreign LLC then you will be required to file an application for “Certificate of Authority” pursuant to 2010 WVC §31B-10-1002.
• The application or documentation for registration of LLC can be filed with the office of the West Virginia Secretary of State Business & Licensing Division, through mail or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form a West Virginia business, feel free to call us on 702-871-8678.

West Virginia Corporation Registration and Formation

If you are planning to form a Corporation in West Virginia then its formation will be governed by 2005 West Virginia Code – CHAPTER 31D. — West Virginia Business Corporation Act. The procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

If you are planning to form a business or professional corporation in West Virginia then you will be required to continuously maintain a registered agent in the state pursuant to 2005 WVC §31D-5-501. This law is applicable to domestic as well as foreign corporations.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in West Virginia. We can assist you to form a West Virginia business as we are in compliance with all regulations in the State of West Virginia.

Step#2: Corporate Name Reservation

In order to form a corporation in West Virginia, one of the key steps is identifying a name for your business entity. The process is as follows:

1. Identify a name for your business entity
2. Conduct a business name search
3. According to 2005 WVC §31D-4-401, a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
4. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or corporation
5. Apply for reservation of name pursuant to provisions of 2005 WVC §31D-4-403.
6. Submit the name reservation form at the Office of the Secretary of State- Business and Licensing Division through online or mail along with the applicable fee. A business corporation can reserve its name for a period of 120 days.
7. If your business is a foreign corporation then you will have to register the name pursuant to 2005 WVC §31D-4-404.

Step#3: Articles of Incorporation and Certificate of Authority

If you are planning to form a corporation in West Virginia, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:

• If you want to register a domestic corporation then you will have to file “Articles of Incorporation” pursuant to 2005 WVC §31D-2-202.
• If your business entity is a foreign corporation then you will be required to file an application for “Certificate of Authority” pursuant to the provisions of 2005 WVC §31D-15-1503.
• The application or documentation for registration of a corporation can be filed with the office of the West Virginia Secretary of State Business & Licensing Division, through mail or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding West Virginia incorporation or LLC formation, you can simply visit the West Virginia Business Formation page.

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A study by “GOBankingRates” revealed that West Virginia is one of the few states that enjoyed a high increase in their economic growth rate at 6.84 percent in 2017. In fact, in the first quarter of 2017, the “Mountain State” had the 2nd highest gross domestic product growth in the country. Those who set up companies in West Virginia in 2017 benefited from the economic growth and a variety of benefits that the state offers. Some of the key industries responsible for fuelling this economic growth include the aerospace industry, manufacturing industry, Chemical and polymer industry, building products industry, and Technology & Information Services among others.

Why Choose West Virginia for Incorporation?

The “Mountain State” as West Virginia is often known, has one of the most business-friendly climates and this is one of the reasons why company incorporation in West Virginia has crossed the 100,000 mark. The largest industry in the state in 2017 was government and government enterprises and it accounted for 16.3% of the state GDP followed by insurance, finance, rental, and leasing, and real estate.

Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:

• Business Investment and Jobs Expansion Credit: If you set up company in West Virginia you will be able to avail of the “Business Investment and Jobs Expansion Credit”, which was enacted by the State Legislature in 1985. The primary objective of this incentive program is to promote net employment growth (new jobs) within the state. As part of the program, the state will provide tax credits to eligible businesses so that they can offset the additional taxes directly attributable to the new jobs as well as qualified investment. More Information
• Economic Opportunity Tax Credit: The primary objective of the Economic Opportunity Tax Credit is to help in promoting net employment growth within the state of West Virginia. In order to qualify for this tax credit program, incorporation in West Virginia is necessary. New and expanding businesses can avail of this benefit. As a part of the program, the State will provide a tax credit to offset any additional taxes directly attributable to the qualified capital investment leading to net employment growth. Download Application

How do you incorporate in West Virginia?

What is the process of company incorporation in West Virginia? Do you require any specific documents? How can you submit or file these documents? These are some of the questions that you will be confronted with and hence the following steps will provide you with information on how incorporation works in West Virginia:

Type of Business

The first step towards incorporation in West Virginia is choosing the type of business you want to form. You can choose to form an LLC or a Corporation. The type of business entity you want to form can be domestic or foreign entity. The forms and fee will be different for each type of entity.

Business Entity Name

What is the next step towards incorporation in West Virginia? The next step is to identify and reserve a name and this can be done as follows:

1. Naming Requirements: The naming requirements in the state of West Virginia are governed by 2010 WVC §31B-1-105 for an LLC and 2005 WVC §31D-4-401 for a Corporation. The name of each limited liability company must contain words like “Limited Liability Company” or abbreviations like “L.L.C.” or “LLC”. A corporate name must contain words like “corporation”, or “incorporated” or abbreviations like “corp.” or “inc.
2. Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
3. Name Reservation: Once you have identified business entity name, and if the name is available then you can reserve the name with the office of the Secretary of State – Business and Licensing Division. You can reserve a name for a period of 120 days according to the provisions given in 2005 WVC §31D-4-403 for corporations and 2010 WVC §31B-1-106 for an LLC.
4. Name Registration: If you are a foreign entity planning to set up a company in West Virginia then you will be required to register the business name with the Secretary of State pursuant to 2005 WVC §31D-4-404 for a corporation and 2010 WVC §31B-1-107 for an LLC.

Choose a Registered Agent

Each Business or Professional Corporation and Limited Liability Company in the state of West Virginia is required to maintain a registered agent pursuant to 2005 WVC §31D-5-501 for Corporations and 2010 WVC §31B-1-108 for a Limited Liability Company.

We are one of the respected registered agents in West Virginia and will be responsible towards initiating company incorporation in West Virginia through processing of all your documents including “Articles of Organization” and “Articles of Incorporation” for domestic business entities and “Certificate of Authority” for foreign entities.

Articles of Incorporation and Certificate of Authority

If you are planning to form a domestic corporation (For profit), then you will have to file “Articles of Incorporation” pursuant to 2005 WVC §31D-2-202. If you are planning foreign business incorporation in West Virginia then you will be required to file a “Certificate of Authority” pursuant to 2005 WVC §31D-15-1503. In order to streamline the process we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in West Virginia, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with West Virginia Incorporation

What would it cost to set up a company in West Virginia? Check Fees here!

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