A West Virginia LLC is a pass-through entity by federal default: a single-member LLC is a disregarded entity reported on Schedule C, and a multi-member LLC files Form 1065 with K-1s. Profit passes to the owners and pays West Virginia personal income tax of up to 5.12%. There is no federal entity-level tax and no West Virginia franchise tax on the LLC. An S-corporation election on Form 2553 shields the non-salary portion of income from 15.3% self-employment tax once net income clears roughly $40,000-$60,000. Non-resident owners of a foreign-owned single-member LLC file Form 5472 with a pro-forma Form 1120 each year.
A West Virginia LLC is a pass-through entity by federal default: a single-member LLC is a disregarded entity taxed on Schedule C of the owner's 1040, and a multi-member LLC is a partnership that files Form 1065 and issues K-1s. There is no federal entity-level tax in either case; the profit is taxed once, on the owners' personal returns. This default holds until the LLC elects corporate treatment. Anonymousllc.co obtains the EIN that every one of these filings requires, by fax in 5-7 days for non-residents without an SSN.
Yes. West Virginia charges personal income tax of up to 5.12% on profit that passes through the LLC to its owners. The rate is graduated, and 5.12% is the top marginal bracket for 2026. West Virginia levies no franchise tax on the LLC and no separate state entity-level income tax; the LLC's profit is taxed on the owners' West Virginia personal returns. A non-resident owner with West Virginia-source income files a West Virginia non-resident return for that income. This state tax is the main cost difference from Wyoming and New Mexico, which do not tax their LLC owners' out-of-state income at the state level. West Virginia's personal income tax rates were reduced in recent years, and the 5.12% top marginal bracket reflects that reduction, with lower brackets applying to smaller amounts of income. An owner who lives outside West Virginia and earns no West Virginia-source income owes no West Virginia tax on the LLC's profit, while a West Virginia resident owner reports the full pass-through profit on a resident return.
An S-corporation election on Form 2553 becomes worthwhile once net income clears roughly $40,000-$60,000 a year. It lets the non-salary portion of profit avoid 15.3% self-employment tax after the owner takes a reasonable salary. Below that income range, the payroll-compliance cost of running an S-corp outweighs the self-employment tax saved. The election does not change West Virginia's up-to-5.12% personal income tax, which still applies to the pass-through profit. Anonymousllc.co works with US tax preparers who model the break-even point before an owner files the 2553.
A default West Virginia LLC owner pays 15.3% self-employment tax on net business income: 12.4% Social Security up to $168,600 plus 2.9% Medicare with no ceiling. This is on top of West Virginia's up-to-5.12% income tax. An S-corporation election lets the non-salary portion of profit escape the 15.3%, though it adds payroll filings and a reasonable-salary requirement. For a non-resident owner with no US-source effectively connected income, self-employment tax does not apply, because the income is not US-taxable earnings from a US trade or business.
A non-resident owes US income tax on a West Virginia LLC only on income effectively connected to a US trade or business. A foreign-owned single-member LLC with no US ECI files Form 5472 with a pro-forma Form 1120 for information, but owes no US income tax. A multi-member LLC files Form 1065 and issues K-1s. An ITIN may be needed for a personal US tax filing, which Anonymousllc.co provides at $299. Anonymousllc.co partners with US tax preparers familiar with non-resident filings, so an overseas owner meets the Form 5472 obligation without a US visit.
Form 5472 is an IRS information return required for any US disregarded entity with 25% or more foreign ownership, filed with a pro-forma Form 1120 each year. A non-resident-owned single-member West Virginia LLC must file it annually. The form reports transactions between the LLC and its foreign owner, and the penalty for not filing starts at $25,000. It is an information return, not an income-tax return, so it does not itself create a tax bill. Anonymousllc.co's tax-preparer partners handle Form 5472 for non-resident owners as part of annual compliance.
No. West Virginia charges no franchise tax on LLCs, unlike Delaware's $300 flat annual franchise tax. The only recurring state fee is the $25 annual report due by July 1. The LLC's tax cost in West Virginia is therefore the up-to-5.12% personal income tax on passed-through profit, plus the $25 annual report. A founder comparing states weighs that against Wyoming, which has no state income tax and a $60 annual report, and New Mexico, which has no annual report and no state income tax on out-of-state income.
Under the March 21, 2025 FinCEN interim final rule, domestic reporting companies are exempt from beneficial ownership information reporting. A West Virginia LLC formed in the US is domestic and currently exempt. Foreign reporting companies formed outside the US and registered into the US remain obligated to file each BOI report. Anonymousllc.co files a BOI report at $150 when a foreign entity requires one. BOI is a FinCEN filing separate from income tax, so it does not change the LLC's federal or West Virginia tax treatment.
No. West Virginia is not one of the four anonymous states, so members or managers appear on the public record regardless of tax election. Anonymity and taxation are separate: an S-corp election or Form 5472 filing does not hide ownership. A founder who wants ownership privacy forms a Wyoming, New Mexico, Delaware, or Nevada anonymous LLC, where members and managers stay off state filings, and foreign-qualifies into West Virginia when local operations require it. Anonymousllc.co forms the Wyoming Anonymous LLC for $397 all-in, EIN and bank applications included.
A West Virginia LLC that sells taxable goods or services collects the state consumers sales and service tax of 6%, remitting it to the West Virginia State Tax Department after registering for a sales tax account. Sales tax is separate from income tax: it is collected from customers at the point of sale rather than paid on the LLC's profit, so it applies whether the LLC is profitable or not. Some West Virginia municipalities add a local sales tax on top of the 6% state rate. An LLC that sells only to customers outside West Virginia, or sells exempt services, registers only when it establishes a taxable nexus in the state. A founder whose West Virginia LLC sells physical products or taxable services registers for the sales tax account before the first sale, and a US tax preparer handles the periodic filing and remittance.
A West Virginia LLC deducts ordinary and necessary business expenses before profit passes through to the owners: the state filing fee, the $100 registered agent, the $25 annual report, software, contractors, travel, and a home-office share where it qualifies. Because the LLC is a pass-through by default, these deductions lower the net profit that both the IRS and West Virginia tax on the owners' personal returns. A US owner may also claim the 20% qualified business income deduction on pass-through profit, which reduces federal taxable income though not the West Virginia figure. Formation costs and startup expenses are deductible under the IRS startup-cost rules in the LLC's first year. Anonymousllc.co works with US tax preparers who apply the correct deductions when they prepare the annual federal and West Virginia filings, so the LLC pays tax on net profit rather than gross revenue.
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