Research

Deciding the Business Structure

The first decision in forming a new business is choosing the legal business structure to form, such as a sole proprietorship, corporation, or limited liability company. The business structure you choose influences everything, including daily operations, taxes, and how much of your personal assets are at risk. Changing a business structure after it has been established can be very time consuming and costly, involving multiple application procedures and filing fees, so be sure to plan accordingly when making your decision.

The structure you choose will depend on factors such as:

  • The number of people who will control the company
  • How business operation decisions are to be made
  • Legal and tax implications
  • Liability issues
  • Management structure
  • The ability to transfer ownership

Learn More About Business Structures

Where to Register Your Business Structure

The lists below show the business structures you can choose from and the state agency where each must initially be registered.

West Virginia State Tax Department

  • Sole Proprietorship
  • General Partnership
  • Joint Venture
  • Association

Visit the West Virginia State Tax Department

West Virginia Secretary of State

  • Corporation (profit or non-profit)
  • Benefit Corporation (profit only)
  • Cooperative Association (agriculture or broadband)
  • Limited Liability Company (LLC)
  • Limited Partnership (LP)
  • Professional Limited Liability Company (PLLC)
  • Limited Liability Partnership (LLP)
  • Voluntary Association
  • Business Trust
  • Unincorporated Nonprofit Association

Important: A business entity that forms through the West Virginia Secretary of State must also complete a business registration with the State Tax Department.

New Business Startup Wizard

Unsure which business structure to choose? Use the Secretary of State's New Business Startup Wizard to help guide you in the right direction when selecting a business structure to suit your business needs. The Office of the Secretary of State can advise you on the types of business structures available; however, we cannot advise you on which structure to form.

Start the New Business Startup Wizard

Legal Disclaimer: This tool is intended as a guide only and is not offered as professional legal or tax advice. We strongly recommend that you consult with an attorney and/or certified public accountant to determine the best business structure to choose when forming a business.

Small Business Development Center (SBDC)

Another excellent resource for business start-up information and assistance is the West Virginia Small Business Development Center. Many of their services are provided at no cost to the public, and they specialize in coaching and mentoring new business applicants throughout the life of the business.

Occupation, Professional and Special Licenses and Permits

In some cases, you may be required to obtain special licenses before you register your business.

Licensed Professionals

Are you a licensed professional starting a professional limited liability company, medical corporation, or legal corporation? If so, you must first apply for approval from your professional licensing board. For example, the Secretary of State cannot accept a PLLC registration without the required verification of eligibility from the appropriate state licensing board.

For licensing board contact information, see Occupational, Professional and Special Licenses and Permits.

Specially Regulated Businesses

Are you beginning a business that will require special licensing, such as the sale of lottery tickets, alcoholic beverages, or other regulated materials or services? Rules of the licensing agencies may affect the type of business you choose or who may serve as officers of the new business.

Find the appropriate contacts and check on the requirements and limitations in Special Licenses and Permits.

State Tax Department

Business Registration

Before engaging in business activity in West Virginia, every individual or business entity must obtain a West Virginia business registration certificate from the State Tax Department. Business activity is broadly defined.

Learn more about Business Registration requirements (opens in a new tab)

State Tax Calendar

It's important to know the tax due dates associated with the filing frequency assigned by the West Virginia State Tax Department, so you can be prepared and plan accordingly.

View the tax calendar due dates (opens in a new tab)

Business Tax Due Date Changes

West Virginia has changed some of the due dates for filing returns by corporations, partnerships, and composite returns to reflect due date changes made at the federal level. These changes are effective for returns filed for tax years beginning after December 31, 2015.

Review the highlights of the changes (opens in a new tab)

Division of Labor

The following business activities require registration or licensure with the West Virginia Division of Labor (opens in a new tab).

Construction Business with Employees: Wage Bond Requirements

With the exception of companies that qualify for an exemption, every employer engaged in commercial construction or the severance, production, or transportation of minerals (excluding railroads and water transporters) in West Virginia must post a wage bond with the Division of Labor to protect the wages and benefits of its employees.

For more information, visit the Wage Bonding (opens in a new tab) page.

Businesses Servicing Devices that Measure Volume and/or Mass of Commodities or Fuel

Any business in West Virginia servicing or installing weighing or measuring devices to be placed back in service for legal trade must have accurate and traceable standards and certify that each agent who performs the work is trained in the applicable area of expertise. These businesses must also notify the Division of Labor's Weights and Measures office within 24 hours of servicing or repairing devices.

For more information, visit the Weights and Measures (opens in a new tab) page.

Businesses Servicing/Installing Elevators

Any business in West Virginia servicing or installing elevators may be required to obtain a contractor license. For more information, visit the Contractor Licensing (opens in a new tab) page.

Businesses employing elevator mechanics must ensure those employees obtain an elevator mechanic license. For more information, visit the Elevator Safety (opens in a new tab) page.

Businesses Operating Amusement Rides and Attractions or Zipline and/or Canopy Tours

Any business in West Virginia operating amusement rides and attractions or zipline and/or canopy tours must acquire a permit for each attraction, canopy tour, ride, or zipline from the Division of Labor and have each one inspected before initial operation and every year after.

For more information, visit the Amusement Rides and Attractions (opens in a new tab) or Zipline and Canopy Tour (opens in a new tab) page.

Businesses Manufacturing, Renovating and Sterilizing Bedding and/or Upholstery Materials

All manufacturers, renovators, and sterilizers of bedding and/or upholstery materials are required to register with the Division of Labor.

For more information, visit the Bedding and Upholstery (opens in a new tab) page.

WorkForce West Virginia

Looking for qualified employees for your business, or need to file Unemployment Compensation (opens in a new tab) for your existing employees? The place to begin is WorkForce West Virginia (opens in a new tab), the one-stop center for all your workforce resource needs.

Employers can post job listings, search for qualified employees, analyze labor market information (opens in a new tab), locate business services, and register their required unemployment compensation account.