Learn about the annual report and tax filing obligations for West Virginia limited liability companies.
If you want to form and operate a West Virginia limited liability corporation (LLC), you must prepare and submit many paperwork with the state. This page discusses the most significant West Virginia LLC continuous reporting and state tax filing obligations.
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Report Annual
Your LLC must submit an annual report with the state of West Virginia. You must submit the report online using the Business4WV website. Every year, the annual report is due by June 30. The first report is not required until the next calendar year for LLCs created on January 1 or later. s p s p s p s p s p s. Late reporting are subject to a $50 penalty.
State Corporation Tax
Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay federal income taxes by default; only its members do. However, when an LLC is created in West Virginia, it is subject to a business registration tax. The fee is $30, and it must be paid to the State Tax Department before your LLC may commence operations. You may register for the tax and pay it online. Your LLC will be awarded a business registration certificate in return for paying the tax.
In certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. West Virginia, like the majority of states, has a corporate income tax. The corporation tax in West Virginia is presently calculated at a flat rate of 6.5% of taxable income. To pay the tax, use Form CNF-120.
Employer Taxes in the State
Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Employers in West Virginia, on the other hand, must pay state taxes.
To begin, you must withhold and remit employee income taxes to the State Tax Department. Start by registering your company with the Tax Department on the Business4WV website. Once registered, you must submit withholding taxes on a regular basis (usually quarterly using Form WV/IT-101Q). Each year, you’ll also need to utilize Form IT-103 to reconcile your LLC’s tax withholding.
Every year, you must balance your LLC’s tax withholding. More information may be found on the State Tax Department’s website.
You’ll also need to register to pay state unemployment insurance (UI) taxes. WorkForce West Virginia is in charge of these taxes (WorkForceWV). These taxes may be registered for online or by utilizing Form UC-201-B (Employer’s Initial Statement). Then, each quarter, utilize Forms WVUC-A-154 and WVUC-A-154 to record your salary and pay your unemployment insurance taxes.
Taxes on Sales and Use
If your LLC will sell items to consumers in West Virginia, you will need to collect and pay sales tax. This implies you’ll have to register with the State Tax Department for this reason and then make periodic sales tax payments for products sold. To submit sales tax returns, use Form WV/CST-200CU.
Other States Registration
If you want to do business in states other than West Virginia, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.