West Virginia LLC – How to Start an LLC in West Virginia

– [Narrator] How form
an LLC in West Virginia. West Virginia's 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 U.S., 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. (relaxing music) 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. You can also find these
steps in more detail on our website, linked
in the description below. One, name your LLC. Every state has it's own
rules about what kind of names are allowed for LLCs. In general, you will need to observe these naming guidelines. Your name must include the
phrase Limited Liability Company, or one of its abbreviations,
LLC, or L.L.C., with the period following each letter. Restricted words such as bank, attorney, law office, et cetera, may
require additional paperwork and may also need a licensed professional to be part of the LLC.

Your name cannot include words
that could confuse your LLC with a government agency,
such as FBI, Treasury, State Department, et cetera. You cannot use a name that
has already been registered. To see if your name is
available, in your state, you'll need to do a name search. This free service is
available on your state's Secretary of State website. Check out our free guide
for finding the direct link to your state. We also recommend that you check to see if your business name is
available as a web domain. Even if you don't plan to
make a business website today, you may want to buy the URL
in order to prevent others from acquiring it.

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's 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. They will send and receive
legal papers on your behalf.

These documents include
official correspondence like legal summons and document filings, which your registered agent will receive and forward to you. Your registered agent will
help remind you to file the necessary reports. Failure to properly maintain your LLC can result in fines and dissolution, so this assistance is valuable. 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'll 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 the 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. Although not every state requires it, you should always create
an Operating Agreement to establish ownership terms
and member roles for your LLC. This foundational document
is the core of your LLC and will help you maintain
your organization, as well as further establish your LLC as a separate legal entity. There are six main sections
of an Operating Agreement. Organization, outlines when and where the company was created,
who the members are and how the ownership is structured.

abbreviations LLC

Management and Voting addresses
how the company is managed, as well as how the members vote. Capital Contributions,
covers which members financially support the
LLC and how more funds will be raised in the future. Distributions, outlines how the
company's profits and losses are shared among members. Membership Changes, describes
the process for adding, or removing members, as
well as, if and when, members can transfer
their ownership shares. And Dissolution, which
explains the circumstances in which the LLC may be dissolved. An Operating Agreement
is an internal document. It does not need to be
filed with the state. However, it should be updated every time there's a change in membership, or management at the company. You can download a free
sample Operating Agreement, or create a custom one, using our free Operating Agreement tool, at howtostartanllc.com. 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 it's how the IRS tracks
your business for tax purposes. An EIN is also necessary to
open a business banking account and legally hire employees. EINs are free of charge and
can be obtained from the IRS online, or through the mail. And with that you'll have
formed a West Virginia LLC on your own. Option two, 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. 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 with holding your personal
name and home address from the LLCs contact information. There are many reason
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 five
professional formation services, or get more information on how to form a West Virginia LLC on your own. Now you know all the steps
to form an LLC in your state. For a more detailed guide,
go to howtostartanllc.com. You can also create an Operating Agreement and use our business
plan tool free of charge. Give the video a like
if you found it useful and subscribe if you'd like to see more. And if you have questions,
or encounter any roadblocks, leave a comment below.

Good luck in staring your small business. (relaxing music).

As found on YouTube

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