How to form an LLC in West Virginia
West Virginia is an excellent place to form a new LLC: not only does it have low business
costs and some of the lowest sales tax in the US, it also boasts the third lowest cost
of labor in the nation.
Every state has slightly different requirements for forming an LLC.
Follow along closely to learn the required steps for creating your own Limited Liability
Company in the state of West Virginia.
There are two ways to form an LLC in West Virginia: You can form one yourself, or you
can hire a service to do it for you.
Let’s start by looking at the five basic requirements to form an LLC in West Virginia
on your own:
One: Name your LLC.
You’ll need to choose a company name that complies with West Virginia naming requirements,
and do a name search on the West Virginia Secretary of State website to make sure the
name isn’t already taken.
You should go ahead and register the URL for your business website and email as well.
Two: Choose an Agent for Service of Process.
It’s a good idea to nominate an Agent for Service of Process for your LLC, who is your
business’ point of contact with the state.
An Agent for Service of Process is more commonly known as a Registered Agent in other states.
The registered agent can be an individual within the company including yourself, or
you can hire a professional service authorized to do business in West Virginia.
The West Virginia Secretary of State will act as the default Agent if you do not nominate
one, and will receive all notices and files.
Three: File the Articles of Organization.
To register your West Virginia LLC, you will need to file the Articles of Organization
with the State of West Virginia.
This can be done online or by mail.
You will also need to state whether your LLC will be member-managed or manager-managed.
Member-managed means all members of the LLC manage the company.
This is good for small organizations, where everyone is involved in day-to-day operations.
The second option is manager-managed, where individuals are appointed to manage the LLC.
This is appropriate for larger organizations, where not everyone is involved in the day-to-day
affairs of the business.
Four: Create an Operating Agreement.
You should also create an operating agreement to establish ownership terms, member roles,
and operating procedures.
This legal document ensures that all business owners are on the same page and reduces the
risk of future conflict.
A comprehensive operating agreement will further establish your LLC as a separate legal entity,
however, it does not need to be filed with the state.
Five: Obtain an EIN.
Lastly, you’ll need to get an Employer Identification Number, or EIN, from the IRS.
Also known as a Federal Tax Identification Number, your EIN is like a social security
number for your LLC and is important for taxes and banking.
EIN’s are free of charge, and can be obtained from the IRS online or through the mail.
And with that, you will have formed a West Virginia LLC on your own.
Option 2.
Hire a Professional Service
The second way to create a West Virginia LLC is to hire a professional service to create
your LLC for you.
Hiring a professional service to file your forms and act as your registered agent for
the LLC will cost you an additional 50 to 150 dollars.
However, there are several benefits to working with a pro:
A hired registered agent helps with getting your reports filed on time, helps you stay
organized by keeping your business mail separate, and is available at all regular business hours
to accept official mail and legal papers on your LLC’s behalf.
A final and important additional benefit of using a service is privacy: a professional
service will provide a level of privacy by withholding your personal name and home address
from the LLC’s contact information.
There are many reasons why you might not want your personal information easily accessible
and associated with your business- hiring a professional LLC formation service is an
easy way to accomplish this.
Now that you have seen the different requirements and ways you can form an LLC in West Virginia,
visit our site and take some time to research your options and establish a solid foundation
for your business activities.
Click on the links in the description below to research the top 5 professional formation
services, or get more information on how to form a West Virginia LLC on your own.
We offer a host of free templates and tools to help accelerate your small business, from
operating agreements to business plans- all free of charge.
Visit us at HowtostartanLLC.com