An Overview of How To Pay Your West Virginia LLC Taxes
If you operate a company in West Virginia, and it is covered by an LLC, there are certain aspects of paying taxes that you need to be aware of. First of all, there are annual filing requirements related to having your limited liability company. This involves filing an annual report which will cost $25. You are also responsible for paying state business taxes. That is because LLCs are not responsible or liable for taxes at all. They are pass-through entities, and therefore your connection to your West Virginia LLC is similar to having a sole proprietorship. This applies to you, your members, and your managers. Let’s go into more detail about paying West Virginia LLC taxes.
What Forms Do You Have To Use?
To pay state business taxes via your LLC, you are responsible for paying a business registration tax. This is a total of $30 and must be sent directly to the State Tax Department. This must be done prior to conducting any business at all. You can register to pay this online if you want to, yet if your business is more like a corporation, you may also have to file IRS form 2553. This is different than the pass-through tax situation in that you must file a separate tax return if you are regarding your company and your LLC more like a corporation. Currently, the amount is 6.5% of taxable income, and you must submit a Form CNF-120. Finally, if you have employees, you also need to pay state employer taxes. These are also paid to the State Text Department. Additionally, you may also be responsible for paying unemployment insurance taxes. You must first register with Form UC-201-B. Every quarter you will then be responsible for using Forms WVUC-A-154 to report wages and pay these unemployment taxes.
Sales And Use Taxes
If your company is selling goods to people in West Virginia, collecting sales tax is something that you must do. To make your payments, you must submit this to the State Tax Department, making periodic sales tax payments for everything that you have collected. To do this, you will need to use Form WV/CST-200CU.
Finally, if you are conducting business in any other state, you may have to obtain a certificate of authority, and the tax per the rates in those states, something that must be calculated based upon the number of sales that you are making.
If all of this seemed complex, it can be if you are not working directly with an accountant that understands LLCs and taxes. However, from this basic overview, you can see what you will be responsible for, and how your limited liability company plays a role in making these payments. Keep in mind that it is still very beneficial to have an LLC protecting the assets that you personally have. If there are multiple members working with you, they will all share in the taxes that must be paid, allowing you to share the burden of paying taxes in West Virginia.
What If You Don’t Have An LLC Already?
If you do not currently have an LLC, but you want to benefit from one, you can submit paperwork to create one right away. You must register the name of your limited liability company first and find a registered agent. Once you have done that, you can then file Form LLD-1. This is a somewhat complex document that will be submitted to the West Virginia Secretary of State office. There is quite a bit of information that must be included. You will need the LLC name, address, email address, and website address. You also need to list the name and address of your registered agent. The organizers, members, and managers must also be listed. You must also state if you are doing business in other states as well. There is also information that you must clarify such as are you a scrap metal dealer, and you must also state when the LLC will be effective. Finally, you must state whether or not this is a veteran-owned LLC, and at the bottom, the signature of the organizer will complete the document. By making a payment and submitting this on the West Virginia One-Stop business portal, with a $100 filing fee, can look forward to all of the benefits of your LLC.
Creating an LLC does have many tax benefits. However, there are also many taxes that you will have to pay. Part of the benefit is that you are sharing in the payment of the taxes. You will need to understand what forms to fill out, and when to make your payments, to remain compliant with West Virginia law. If you need to, consult with a company that sets up LLCs. They can also help you understand this entire process. If you need clarification about taxes, the Articles of Organization, or any other documents, they will be more than happy to share their expertise as well as help you create your limited liability company.