Registering a business in West Virginia

Before you begin business in West Virginia, you will need to register with the Secretary of State and the West Virginia Tax Department. West Virginia has a One Stop Business Portal which can register your business with the departments online. The portal can be found here

S-Corporation Income Tax

West Virginia recognizes the federal S-election, and West Virginia S corporations are not required to pay tax to the state. However, individual S corporation shareholders will owe tax on their share of the corporation’s income. 

S corporations and partnerships are required to file an annual pass through entity on form SPF-100, found here.

LLC/Partnership Income Tax

LLCs and partnerships are not required to pay income tax to West Virginia. Instead, income from the business is distributed to individual LLC members or partners, who then pay West Virginia income tax on that amount with their personal return.

S corporations and partnerships are required to file an annual pass through entity on form SPF-100, found here

Composite Tax

Nonresident individuals which are members of pass through entities in West Virginia may elect to be a member of a nonresident composite group. If the nonresident members elect to be a part of the composite return, the entity will then file a composite return. West Virginia charges a $50 processing fee when submitting a composite return. Composite tax is 6.5%. Businesses use form IT-140NRC which can be found here.

Individual Income Tax 

Shareholders and partners with income assignable to West Virginia may need to file an individual income tax return. Individual income tax rates vary by filing status and income and are as follows. 

Income taxes are filed on form IT-140, forms and instructions can be found here

Due Date 

An S corporation’s annual West Virginia Income Tax return is due on or before the fifteenth day of the third month following the close of the taxable year. A partnership’s annual West Virginia Income Tax return is due on or before the fifteenth day of the third month following the close of the taxable year.

Composite and individual income tax returns are due on the 15th day of the fourth month following the close of the taxable year. If the due date falls on a weekend or holiday, the due date is the next business day. 

Estimated Payments 

West Virginia s corporations and partnerships mut pay withholding tax on West Virginia sourced income on behalf of their nonresident shareholders/partners. S corporations and partnerships use form SPF-100ES found here. Estimated payments are due on the 15th day of the fourth, sixth, ninth and twelfth month of the tax year. 

Individuals must make estimated quarterly payments if your estimated tax liability is at least $600. Individuals can use form IT-140ES found here. Estimated payments are due on the 15th day of the fourth, sixth and ninth month of the tax year and the first month of the following tax year. 

Filing an Extension 

S corporations and partnerships requesting an extension of time to file must use form SPF-100EXT found here. Taxpayers requesting an extension to file will receive the same extension granted on their federal return. An extension to file does not extend the due date of payment. 

Individuals who obtain a federal extension will automatically receive an extension for their West Virginia return. The extension date must be entered on your West Virginia return. Include a copy of Federal Schedule 4868 when filing. 

Penalties

S corporations and partnerships that fail to file a timely return are subject to a $50 penalty. 

Individuals may be subject to a 5% late filing fee per month, up to a maximum of 25%.

Additional Information

If your business was formed or is located in another state, but generates income in West Virginia, it may be subject to West Virginia taxes. The rules for taxation of multistate businesses, including what constitutes nexus with a state for the purpose of various taxes, are complicated. If you run such a business, you should consult with a tax professional.

West Virginia Tax Department:

https://tax.wv.gov/Pages/default.aspx

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