West Virginia lesson 5 of 6
West Virginia LLC taxes, licenses and permits
West Virginia has no franchise tax on LLCs. Members of a pass-through LLC pay the state's graduated personal income tax on their share of profit, and the top rate is scheduled to drop for the 2026 tax year.
How members are taxed
A West Virginia LLC taxed as a partnership or sole proprietorship for federal purposes passes income through to its members, who report their share on their West Virginia personal income tax return. For the 2025 tax year, West Virginia's graduated rates run from 2.22% up to 4.82%. Senate Bill 392, enacted in the 2026 Regular Session, cuts the top rate further to 4.58% for the 2026 tax year. Confirm the current year's brackets on the Tax Division's rate schedules before filing, since the legislature has cut rates in successive years and may do so again.
An LLC that elects C corporation tax treatment for federal purposes instead files a West Virginia Corporate Net Income Tax return and pays the state's corporate income tax on its West Virginia taxable income, calculated using the state's single sales factor apportionment formula.
Licensing beyond the Business Registration Certificate
The Business Registration Certificate is the baseline requirement to operate in West Virginia, but it does not substitute for industry-specific licensing. Certain professions, including construction trades, healthcare and cosmetology, require a separate state board license, and some cities and counties layer on their own local business licensing or permits on top of the state requirements.
Check with the municipality where your LLC operates in addition to the state, since West Virginia does not centralize local business licensing through the Secretary of State or Tax Department.
Key takeaways
- The top personal income tax rate is 4.82% for the 2025 tax year, dropping to 4.58% for 2026 under SB 392.
- There is no LLC franchise tax; a C-Corp election instead pays the West Virginia Corporate Net Income Tax.
- Industry board licenses and local municipal licenses are separate from the statewide Business Registration Certificate.
Frequently asked questions
Is West Virginia's personal income tax rate changing?
Yes. The top rate is 4.82% for the 2025 tax year and drops to 4.58% for the 2026 tax year under Senate Bill 392, signed during the 2026 Regular Session.
Does West Virginia have a franchise tax on LLCs?
No. West Virginia does not levy a franchise tax on LLCs. Only an LLC that elects C corporation tax treatment pays the Corporate Net Income Tax.
Official sources
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Everything above is yours to use for free. If you would rather hand it over, we prepare and file the Articles of Organization of Limited Liability Company (Form LLD-1), act as your registered agent, and track your ongoing deadlines.
Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team