West Virginia, from its mountain towns to its bustling university centers in Morgantown and Huntington, has much to offer new entrepreneurs. West Virginia currently boaststhe lowest cost of doing businessof all US states. It is also centrally located at the crossroads of three distinct regions—the Northeast, Midwest, and South—making West Virginia a major supply and transit hub. This step-by-step guide will introduce you to all the state of West Virginia has to offer when it comes tostarting a business.
Start a business in West Virginia
1. Choose a business idea
The first step toward taking advantage of all the exciting opportunities West Virginia has to offer its small business community is to select abusiness idea. A solid concept lays the foundation for your venture—in West Virginia and elsewhere. Think about whether you want to sell a product, service, or a combination of both. You might improve upon an existing market offering or come up with something entirely new. Regardless, consider these factors before getting to work:
- Who is your customer? Identify yourtarget customer, because that profile will inform your service orproduct developmentmore than anything else. Analyze businesses and marketplaces where similar products or services are sold (likeAmazonor Wayfair), and research industry trends. Will you sell business-to-business(B2B) or directly to consumers(B2C)? Online or through atraditional storefront?
- What is your projected profitability? A business must turn a profit in order to survive. Businesses in West Virginia are no exception. Variables that can impact your profitability might include pricing,packaging,distribution,bundling models. Will you offersubscription options? What’s yourbreak-even point? Or, how much do you have to sell to cover your costs?
2. Name your business
Once you’ve settled on a business idea, it’s time to pick out a name. Coming up with a suitable, memorable name is one of the most important decisions you’ll make as an entrepreneur. A goodnameeffectively conveys your company’s purpose while simultaneously appealing to a customer’s sensibilities. Some guidelines when selecting your West Virginia business name include:
- Be original.Your West Virginia business name must be entirely unique from any other business currently registered with the state. You can search a database of currently registered West Virginia businesses on theSecretary of State’s website.
- Include correct suffixes.A West VirginiaLLC必须包含在它的名字“有限Liabil吗ity Company” or “Limited Company,” or an abbreviation of either (L.L.C., LLC, L.C., or LC). A West Virginia corporation’s name must contain the words “Corporation,” “Company,” “Incorporated,” or “Limited,” or an abbreviation of any of these (Co., Inc., or Ltd.). For more details on what you must include in your West Virginia business name, visit thestate legislature’s website.
- Exclude certain terms.Your West Virginia business is restricted from containing certain words and terms in its name, such as “911,” or words that suggest belonging to certain regulated fields, like banking, engineering, or insurance, if your business does not engage in these activities. For more information on what you may not include in your West Virginia business name, visit thestate legislature’s website.
- Reserve your name. To reserve a name in West Virginia, you are required to submit anApplication for Name Reservationto the Secretary of State’s office, and pay a $15 filing fee. Sole proprietorships may not reserve business names in West Virginia.
- Secure a domain name and social media handles.Potential customers should be able to find you easily online. When deciding on a business name, check to see if a relevantdomain name(URL) is available, then reserve social media usernames that align with your business name or DBA.
Adopting a DBA in West Virginia
If you want to operate under a different name than the business entity you registered with the state, you must file for aDBA, or “doing business as.” Your DBA must adhere to all West Virginia business-naming rules. You can then submit anApplication for Trade Name (DBA)to the West Virginia Secretary of State’s office, and pay a $25 filing fee.
3. Create a business plan
Every small business owner needs abusiness planon hand. Your business plan should reflect your business’s overall goals and give potential investors or partners a sense of how you intend to run the company in the near and long term. A good business plan contains the following:
- Executive summary
- Mission statement
- Detailed company description
- Market analysis
- Organizational structure
- List of products or services
- Customer segmentation report
- Marketing plan
- Logistics and operations plan
- Financial plan
You can craft your plan using afree business plan templatetailored to meet your needs or consultbusiness plan examplesfor inspiration.
4. Choose a business structure
Before formally establishing your business in West Virginia, you’ll need a legal structure for it. There are four primarytypes of businessesavailable to business owners in West Virginia: sole proprietorships, general partnerships, LLCs, and corporations. Each offers different benefits for personal liability, ownership structure, taxation, and funding opportunities. Here’s how they’re distinct:
- Sole proprietorship.Sole proprietorshipsare owned and run by a single person. They are the default designation for individual-run, freelance businesses in the US. Since there’s no legal distinction between the proprietor and the business, both are taxed as “pass-through” business entities, meaning earnings are taxed one time at the proprietor’s personal-income rate. The owner is also personally liable for most debts and legal damages incurred by the business. Sole proprietorships and partnerships pay federal self-employment state taxes as well (15.3%). There are no fees or registration requirements to set up a sole proprietorship.
- General partnership.General partnershipsare formed by two or more partners and are taxed similar to sole proprietorships. Like sole proprietors, there’s no legal distinction between a general partner and the business.
- LLC.Alimited liability company(LLC) is formed by one or more owners, known as “members.” Like partnerships and sole proprietorships, LLCs can elect to be taxed as pass-through entities. LLCs differ from sole proprietorships and partnerships in that they enjoy a degree of liability protection. This is because the LLC is considered a separate legal entity from its members. This added layer of protection makes LLCs a bit more complex and costly to set up than sole proprietorships or general partnerships.
- Corporation.A corporation is a separate legal business entity from its ownership, like an LLC. This means owners’ personal assets are protected in case the company goes bankrupt or faces one or more lawsuits. Corporationsdiffer from LLCsin that they can issue stocks to shareholders in exchange for a business ownership stake.Corporationsare also subject to corporate taxation, meaning the government taxes business income as well as the personal income of its owners and shareholders. The corporate tax rate in West Virginia is presently6.5%.
Obtaining a federal employer identification number (EIN)
Once you’ve decided on a structure for your West Virginia business, you may next apply for a federal employer identification number (EIN) through theInternal Revenue Service (IRS) website. Applications may be submitted free of charge. An EIN is a nine-digit number assigned to businesses by the IRS for tracking tax obligations—like a Social Security number, but for companies. An EIN also helps secure credit accounts for business expenses.
Incorporating in West Virginia
To formally launch your business in West Virginia, you may have to pay fees andfile specific documentswith the Secretary of State’s office. Some business structures (like sole proprietorships and general partnerships) don’t need to do this. Here’s how to incorporate in West Virginia:
- LLCs.For a West Virginia LLC, you must fileArticles of Organizationwith the Secretary of State’s office, and pay a $100 filing fee.
- Corporations.For a West Virginia corporation, you must fileArticles of Incorporationwith the Secretary of State’s office, and pay $100 for a for-profit venture; $25 for a non-profit. Fees are waived for corporations owned by US military veterans or qualifyingentrepreneursunder the age of 30.
Basic information included in any Articles of Incorporation include:
- Business name and address
- Name and address of someone authorized to receive official correspondence on the business’s behalf (or registered agent)
- Whether the business is for-profit or non-profit
- Whether one or more of the business owners are veterans
Consider opening abusiness bank account. It’s not required, but theIRS recommendsthat all small business owners maintain business bank accounts separate from their personal assets.
5. Obtain business licenses and permits
Any entity engaging in business activity in West Virginia must obtain a business registration certificate from theWest Virginia Tax Division. You canapplyonline or in-person, and pay a $30 registration tax upon submission.
6. Examine business insurance options in West Virginia
Unforeseen losses can be catastrophic for new businesses—in West Virginia and anywhere else. While some business structures like corporations and LLCs offer a degree of personal asset protection, you may still want to purchasebusiness insuranceto account for uncovered products, vehicles, and other assets. Common insurance plans and other coverage for West Virginia businesses include:
- Workers’ compensation insurance.West Virginia lawrequires all in-state businesses with employees to maintainworkers’ compensation insurancecoverage, or workers’ comp. Workers’ comp covers employees from injuries or illnesses they may sustain on the job.
- General liability insurance.General liability insurancecovers some financial losses (like no-fault property damage) and injuries like a customer slip-and-fall. While West Virginia law does not require you to hold this policy, you may need it in order to rent an office, storefront, or warehouse space.
- Professional liability insurance.Professional liability insurance—otherwise known as errors and omissions insurance—covers financial losses from malpractice suits concerning advice or high-competency services like law, accounting, or even real estate. For example, a real estate agent who fails to note mold in a basement may be liable for malpractice damages, and potentially covered by professional liability insurance.
- Commercial business with employees wage bond.Every employer in West Virginia engaged in the commercial construction industry or mining mustfurnish a wage bondto the West Virginia Division of Labor to secure the wages and benefits of employees.
The federal Small Business Administration (SBA)maintains a listof more insurance policies your new West Virginia business may need.
7. Understand financial considerations
In addition to purchasing insurance, you’ll likely have to make other investments at the early stages of your West Virginia business. These might include rentingbrick-and-mortar retail space, setting up a professionally designedbusiness website,purchasing ads, equipment, and software. You may also want to hire lawyers, accountants, and otherprofessionalsto support business operations on a contract basis.
These business costs can add up quickly. Luckily, there are accessible resources—likeShopify Capital—to help you obtain the necessary startup funds. West Virginia also offers a variety of assistance and资助项目.
8. Market your business
Devising amarketing strategyis essential for getting the word out about your new business. Your subsequentmarketing planmay include the following elements:
- Market research.Thoroughmarket researchis critical to understanding yourtarget marketand can give you a better sense of how to stand out in the West Virginia business ecosystem.
- Advertising. Design and purchase print or digital ads—or hire anagencyto do it on your behalf.
- Social media. Every successful business must maintain a solidsocial media presenceon platforms likeFacebook,Instagram,YouTube,TikTok—especially if you want to appeal to younger audiences. Consistently publish content that aligns with your brand to upcustomer engagement.
- Public relations. Identify andcultivate relationships with media outlets——在西维吉尼亚州d nationally—to increase your visibility organically.
Customer retention.Buildgenuine relationshipswith customers that keep them returningto your business—and spread the word to friends, family, and colleagues.
Starting a business in West Virginia FAQ
How much does it cost to start a business in West Virginia?
It costs at least $100 to set up your LLC or corporation in West Virginia, unless you qualify for certain exemptions for veterans or young entrepreneurs, or discounts for nonprofits.
Does West Virginia require a business license?
West Virginia requires that any business operating in the state must obtain a business registration certificate from the state tax department.
Is West Virginia a good place to start a business?
West Virginia is a great place to do business, offering the lowest cost of doing business in the nation. That reputation is a result of a variety of favorable climatic factors including low overall taxes, low cost of living, and ideal geographic placement for short-term shipping and transit to major metropolitan parts of the country.