West Virginia Business Taxes for LLCs

Filing fee: $100 (Articles of Organization)

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State agency: West Virginia Secretary of State

Annual report due: June 30 each year

State tax rate: Personal income tax: 2.36%–5.12% (graduated, 2024 rates); Corporate net income tax: 6.5%

A West Virginia LLC is a pass-through entity by default, which means the LLC itself does not pay state income tax. Instead, each member reports their share of the LLC's income on their individual West Virginia return and pays tax at personal income tax rates. The specific taxes your LLC owes depend on how it is taxed, whether it has employees, and whether any members live outside West Virginia.

• Pass-through income tax paid by members on their individual West Virginia Form IT-140
• Self-employment tax on net earnings (federal, not state)
• Corporate net income tax at 6.5% if the LLC elects C corporation treatment
• Pass-through entity withholding at 4.82% on West Virginia-source income for nonresident members
• Payroll taxes if the LLC has employees
• No state franchise tax — West Virginia eliminated it after December 31, 2014

How West Virginia taxes an LLC

West Virginia follows federal tax classification for LLCs. A single-member LLC is treated as a disregarded entity — its income flows directly onto the owner's individual West Virginia Form IT-140, not a separate LLC return. A multi-member LLC is treated as a partnership, and each member reports their distributive share on their own individual return.

Most LLC owners find that the pass-through structure keeps things straightforward at the state level — there is no separate West Virginia LLC income tax return to file unless the LLC has elected a different tax classification.

State income tax for LLC members

West Virginia uses a graduated personal income tax system. For the 2024 tax year, rates range from 2.36% on lower taxable income up to 5.12% on higher taxable income. LLC members pay tax on their share of the LLC's profits at these marginal rates, after applying any allowable deductions.

Plus, because LLC income passes through to members rather than being taxed at the entity level, the LLC itself does not file a West Virginia personal income tax return. Each member files their own Form IT-140 and reports their share of the business income there.

Pass-through entity withholding for nonresident members

If your LLC has members who live outside West Virginia, the LLC is generally required to withhold West Virginia income tax on those members' shares of West Virginia-source income. The withholding rate is 4.82% on each nonresident member's allocable share of West Virginia-source federal taxable income.

The withholding applies only to income derived from or connected with West Virginia sources. Income allocable to nonresident members that has no West Virginia connection is not subject to this requirement. The LLC remits the withheld tax to the West Virginia Tax Division on the prescribed pass-through entity forms.

Corporate income tax if your LLC elects C corp status

An LLC that elects to be taxed as a C corporation for federal purposes is subject to West Virginia's corporate net income tax at a flat rate of 6.5% on West Virginia taxable income. The LLC files Form CIT-120, the West Virginia Corporate Net Income Tax Return, which is generally due April 15 for calendar-year filers.

If the LLC expects West Virginia taxable income above $10,000, it also needs to make estimated corporate net income tax payments during the year. A tax professional can help you figure out whether a C corporation election makes sense for your situation.

Estimated tax payments

Most LLC members need to make estimated state income tax payments during the year rather than waiting until the annual return is due. West Virginia estimated payments for individuals are generally due in 4 installments: April 15, June 15, and September 15 of the current tax year, and January 15 of the following year.

If you file your declaration after April 15, the number of required installments decreases. A declaration filed after September 15 requires the full estimated amount at the time of filing. Missing installments can result in underpayment penalties, so check your schedule with a tax professional.

Payroll taxes

If your LLC has employees, you have 2 main state payroll tax obligations. First, you need to withhold West Virginia personal income tax from employee wages and remit it to the West Virginia Tax Division. Second, you need to register for and pay State Unemployment Insurance (SUI) contributions to WorkForce West Virginia.

SUI is paid on each employee's wages up to a taxable wage base of $9,500 per year. The rate depends on your experience rating — new employers are assigned a statutory new-employer rate, while experienced employers fall within a range that can run from roughly 1.5% to around 8.5%. Register for both accounts through the WV One Stop Business Portal.

Franchise tax and annual report

West Virginia does not have a franchise tax on LLCs. The state eliminated its Business Franchise Tax after December 31, 2014, so there is no annual privilege tax owed simply for doing business in West Virginia as an LLC.

Your LLC does need to file an annual report with the West Virginia Secretary of State by June 30 each year to stay in good standing. That is a compliance filing, not a tax — but missing it can put your LLC's active status at risk.