The West Virginia Secretary of State handles entity formation. The IRS handles federal tax classification via Form 8832 and Form 2553. The West Virginia Tax Division administers state income tax. A West Virginia LLC can elect to be taxed as an S corporation for federal purposes. West Virginia LLC basics. - Articles of Organization filed with the WV Secretary of State. Filing fee is $100. - Annual report filed each year with the Secretary of State between January 1 and June 30. Filing fee is $25. Failure to file by June 30 may result in monetary penalties and possible administrative dissolution. - The annual report fee is waived for veteran-owned registered entities for the first 4 years after initial business formation; the annual report must still be filed. - Single-member LLCs default to disregarded entity for federal tax. Multi-member LLCs default to partnership tax. Either can elect S corp treatment with Form 2553. - West Virginia does not impose a franchise tax. The $25 annual report fee is the only recurring state fee for an LLC. West Virginia income tax. - West Virginia has a graduated individual income tax; top rate adjusted by recent legislative schedule. Confirm current rate with the WV Tax Division. - Pass-through income from an LLC flows to the owner's WV individual return. - Federal S corp status is recognized by WV. The S corp files WV Form WV/SPF-100. Shareholders report pass-through income on individual returns. West Virginia S corp basics. - Federal S corp election flows through to WV for income tax purposes. - The S corp files the annual report and pays the $25 annual fee. - Payroll. An S corp owner-employee must take a reasonable W-2 salary. WV state withholding and state unemployment tax through WorkForce West Virginia apply once thresholds are met. Why a West Virginia trades shop might still elect S corp. The main reason is federal self-employment tax savings. A disregarded-entity LLC owner pays self-employment tax on the full net profit. An S corp owner-employee pays payroll tax on wages only; the distribution portion avoids self-employment tax. West Virginia's lack of a franchise tax and modest $25 annual report fee make the S corp election essentially a federal decision for most new trades shops. Rule of thumb. Start as a West Virginia LLC. When annual profit after a reasonable owner wage is high enough that payroll tax savings clear the payroll, retirement plan, and accounting costs, elect S corp. A CPA with West Virginia construction clients can run the breakeven for your numbers and confirm current state income tax rates.
WV · LLC vs S-Corp
LLC vs S-Corp in West Virginia
Entity formation, tax treatment, and when to switch.
Not legal, financial, or career advice. Trades Navigator compiles state board rules, statutes, and federal data into a navigable layer linked to primary sources. We do not maintain editorial attestation on each line. Always verify the specific number, fee, deadline, or rule against the linked primary source before relying on it. Confirm any decision with the relevant state agency, a lawyer, or an accountant.
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