West Virginia is home to some of the country’s most scenic mountain ranges and lush forested terrain, but for those who don’t live there, it might as well be a state shrouded in mystery.
However, West Virginia is an impressive state with many business opportunities for entrepreneurs. Therefore, if you are planning to start an LLC in West Virginia, you will benefit greatly from all the great incentives the state has to offer.
In this article, we will briefly outline the steps you can take to start an LLC in West Virginia, as well as the state’s laws pertaining to LLCs. We will also cover how to name your business and how to file the proper documents.
Steps to Start an LLC in West Virginia
Step 1: Choose a business name.
Choosing a business name is a key milestone in the LLC formation process, and you want to make sure that your company’s name is available for use. You can search for available business names on the West Virginia Secretary of State’s website to see if your new company name is available.
To choose a name for your new business, you should be careful to choose a name that is unique and not subject to another company’s trademark. For example, if you are creating an LLC for a company that makes and sells fashion jewelry, then it would be wise to avoid choosing the name “Fashion Jewelry Inc.” You should think of your new LLC’s name in terms of what makes it unique or distinct, rather than in terms of similarities to a known business.
Step 2: Get a Registered Agent
You will need to designate an individual or company to be your registered agent for your newly formed LLC. This person or company will act as the official representative of your business, fielding official mail from the government and serving as a contact point for any legal disputes that may arise.
In addition, your registered agent will also receive all important notices from the government, so you should choose someone who is responsible and trustworthy to handle this responsibility on your business’s behalf.
Step 3: File Articles of Organization
Your LLC is not officially registered to do business in the state of West Virginia until you file Articles of Organization with the Secretary of State. You can file the Articles of Organization online or send them to the address specified on the website. However, you must pay a filing fee to complete this step in your LLC formation process.
The Articles of Organization process is important because it will allow the Secretary of State to enter your new LLC into the state’s records. This process can also serve as a framework for your business agreement, and it will help you identify your legal rights and responsibilities as an organized LLC.
Step 4: Draft an Operating Agreement
There is a lot of flexibility surrounding what you can include in your LLC’s operating agreement, but it is important to outline the details of your business. For example, you should include all the provisions under which your LLC will operate, how it will be managed, how profits and losses will be allocated, and any restrictions on how your business can conduct its day-to-day affairs.
Furthermore, all provisions of your company’s operating agreement will require majority shareholder consent. Therefore, if a shareholder disagrees with certain rules or restrictions, they can block these provisions from being implemented.
Step 5: Register With the IRS and Get EIN
In addition to naming your LLC, you will also need to get an EIN number before you can start doing business. This number is a nine-digit number that identifies your business and contains your federal tax identification number (EIN). You will need this info if you want to pay taxes or other expenses associated with running the business.
The IRS issues EIN numbers once you complete and submit a form online. The essence of the form is to provide the IRS with basic personal information about you, including your business name, business activities, and the number of employees.
Step 6: Understand West Virginia Tax Law
Once you have registered your company, you will need to understand the state’s tax system. In West Virginia, all businesses are taxed based on the income they generate in the state. Therefore, if you decide to opt for a West Virginia LLC, it is important that you understand how income is calculated and the effect it will have on your business’s tax obligations.
West Virginia has an impressive landscape, but it is also home to a vibrant business community. If you are thinking about how to start your LLC in West Virginia state and living vicariously through its natural beauty, then we hope that this article provides you with all the information you need to get started.