West Virginia or the “Mountain State”, as it is known, is the 38th largest state in America and a significant business center that hosts numerous large companies with activities in tourism, mining, banking or agriculture. We have prepared a general guide to company incorporation in West Virginia with information about how you can open a company in this state. Also, you can receive complete support in matters of company registration from our team of company formation agents in USA.

Can I open an LLC in West Virginia?

Foreign business persons who want to set up their operations in West Virginia can consider registering a limited liability company, one of the most popular business structures in America. Having an easy incorporation and fewer formalities, an LLC in West Virginia can suit most business needs of foreigners in USA. Among the information and documents of an LLC in West Virginia, the following are the most important:

• the Memorandum and the Articles of Association with information about the name of the company and the owners;
• the appointed board of directors in charge of the LLC in West Virginia;
• the name of the appointed registered agent with residency in West Virginia;
• complete information about the activities of the LLC you wish to form;
• information about the business address of the LLC in West Virginia.

We can provide you with complete company incorporation services in West Virginia and, more than that, we can represent your firm in this state and act as representative agents for your LLC. If you would like to start a business in USA, we invite you to address your inquiries to our team of advisors.

Do I need an operating agreement?

Even if an operating agreement is not mandatory, it is though recommended to bear in mind such an internal document. This contains information about the owners, their liabilities, the voting rights, the capital contribution and information about how the company can be closed. Our team of advisors can offer more details about how an operating agreement should be created.

Applying for EIN in West Virginia

Foreign investors who want to open a company in USA, including West Virginia, need to apply for the federal tax ID or the EIN (Employer Identification Number). This is the company’s identification number that shows that the business is a taxpayer in West Virginia, USA. The Internal Revenue Service or the IRS is the institution in charge of issuing the EIN for companies in West Virginia, through the local offices.

What is the sales tax in West Virginia?

The standard sales tax in West Virginia is set at a 6% rate, but cities in this state can impose their own sales taxes not exceeding 1% rate. In 2018, the highest tax rate is in Bluefield and it is at 7% rate.

Open a bank account in West Virginia

When establishing an LLC in West Virginia, a bank account is necessary for the company’s future operations. In West Virginia, there are numerous banks from which you can choose and, more than that, for opening a bank account, the company’s documents are necessary, besides the institutions’ forms. Talk to our specialists if you need support in this sense.

Do I need accounting services for my LLC in West Virginia?

Yes, it is mandatory to hire an accounting firm for your company in USA, including West Virginia, as such firm can handle matters like bookkeeping, payroll, annual financial statements among many others. The company formation in USA is an easy process which can be guided by our team of consultants.

Economy facts for West Virginia

West Virginia is known for the high production and export of coal at an international level and it is an appreciated state for doing business, ranking 48th among the most advantageous regions for business. Charleston is the capital of West Virginia and a major business center, alongside with cities like Clarksburg, Morgantown, Parkersburg or Huntington where your operations can be successfully placed.

West Virginia is among the American states that have an attractive tax regime meant to attract investors in varied sectors. For example, the personal income tax ranges from 3% to 6.50%, depending on the taxable incomes of individuals living in West Virginia. We invite you to talk to our team of company incorporation in USA agents and find out complete details about the ways in which a business can be started in West Virginia and also about the tax structure applicable in this state.

What is the corporate income tax rate in West Virginia?

The corporate income tax for companies in West Virginia is a flat tax of 7.75% which is applicable on the gross income. Sole proprietorships, S corporations and partnerships are among the business entities for which the income tax does not apply. On the other hand, C corporations are the type of companies subject to the corporate income tax in West Virginia. It is important to know that besides this tax, the personal incomes of business owners in West Virginia is subject to a bracketed income tax, being subject to double taxation which eventually is regulated through personal tax returns. It’s good to know that the registration and the tax filings are made with the West Virginia Department of Revenues, the authority that oversees the tax structure in this state. If you would like to know more about the taxes you need to pay for your business, you may talk to our company incorporation agents in USA. The same team can help you start a business in USA, including in West Virginia.

What is the sales tax in West Virginia?

Most of the purchases in West Virginia are subject to a standard sales tax of 6%. Tangible personal properties and company services in West Virginia are subject to the use tax which is a substitute tax imposed for consumer sales in the cases the sales tax has not been paid. Such a tax is established at the same rate as the sales tax, mentioning that local sales taxes not exceeding 1% can be collected by different municipalities in West Virginia.

Is there an inheritance tax in West Virginia?

No, there is no need to consider the inheritance tax in West Virginia. The same thing is available for the estate tax, as it doesn’t apply in this state.

The personal income tax in West Virginia

Personal incomes are taxed at five different brackets as follows:

Taxable income Tax rates

• Starting from 0 to $10,000: 3%
• Between $10,001 and $25,000: 4%
• Between $25,001 and $40,000: 4.5%
• Between $40,001 and $60,000: 6%
• For more than $60,000: 6.5%

For additional information about the personal income tax in West Virginia and the ways it is imposed, we invite you to address your inquiries to our team of company formation representatives in USA. Our team is at your disposal if you would like to open a company in USA and establish a business presence in West Virginia. In addition, you can read the general guide to company formation in West Virginia and have an idea about the ways in which the business is done in this state.

Other tax facts in West Virginia

Real and personal properties in West Virginia are subject to a tax rate of 0.59%, the seventh lowest rate in USA. There are also sales tax exemptions in West Virginia and these are applied for personal and professional services, child care services and other related. West Virginia Gas Tax, West Virginia Alcohol Tax, and West Virginia Cigarette Tax should be considered at the time you intend to start a business in this American state. Another important tax fact refers to Nexus. This means that if your company in West Virginia has subsidiaries/branches in other American states, that generate money in West Virginia, such companies are subject to taxation in those states. This is known as Nexus, and it is quite important to pay attention in this direction if you would like to develop your company in other states too. This means that you will have to solicit information about the taxation structure in those states and align with the applicable requirements. Known as the largest coal exporter in USA and the second largest producer of this kind of fuel, West Virginia welcomes investors in the mining industry where specific tax exemptions might apply.