How to start a business in West Virginia in 14 steps (2025 guide)

Starting a business is an exciting chance to push yourself, grow your wealth, and invest in your community—and West Virginia is an exciting place to do it. Known for its scenic mountain beauty and rich store of natural resources, West Virginia beckons with opportunities for would-be entrepreneurs and small business owners. 

Why start a business in West Virginia in 2025?

The Mountain State boasts both a low cost of doing business and a low cost of living with an array of opportunities, from work that supports natural resource extraction to outdoor recreation enterprises. The state’s economic climate also offers some major upsides, including higher-than-average GDP growth, according to Business Facilities 2024 Rankings Report. 

Consequently, West Virginia is fertile ground for small businesses and startups, with more than 90% of the state’s businesses classified as small according to West Virginia’s Business Portal. 

If you're ready to learn how to start a business in West Virginia, follow the topics we’ll cover in this step-by-step guide: 

• 14 steps to starting a business in West Virginia
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choose your business entity: Types of business entities in West Virginia
• Step 5: Secure funds: West Virginia small business funding, loans, and grants
• Step 6: Choose your West Virginia business name and West Virginia DBA
• Step 7: Pick a business location in West Virginia
• Step 8: Find a West Virginia registered agent 
• Step 9: Get a West Virginia EIN and file your tax and employer identification documents 
• Step 10: Register as a small business in West Virginia 
• Step 11: Register for your business license and permits in West Virginia
• Step 12: Secure insurance for your West Virginia small business 
• Step 13: Prepare to pay taxes on your business in West Virginia
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions

14 steps to starting a small business in West Virginia

Before you begin your entrepreneurial journey, learn about how to start a small business in this land of mountains, rivers, and friendly people. With small business resources and this list of essential tasks to help you get started, you’ll be prepared for success.

Step 1. Decide what type of industry is best for your business 

When choosing the best industry for your West Virginia business, consider how your skills and interests align with local industries and market demand. Natural resource extraction and development has always been a big part of the Mountain State’s economy. Coal, natural gas, and chemical manufacturing are all thriving industries here, though the state also has a solid and expanding tourism industry as well as growing tech and healthcare sectors. 

For more business concepts to spark your entrepreneurial imagination, explore this list of small business ideas.

Step 2. Conduct research in your industry

Research your target market, analyze competitor offerings, and identify any regulations or licensing requirements specific to your chosen field in West Virginia. Conducting a competitive analysis is especially critical since the process gives you intel on your competitors and can help you find foothold opportunities in areas where others struggle. The West Virginia Department of Economic Development offers an array of resources for entrepreneurs and businesses wishing to relocate.

Step 3. Create a business plan

Your business plan is the guidebook for your West Virginia small business venture. Use it as a strategizing tool to determine your business concept, goals, target market, and marketing plan. It’s also a resource for establishing financial projections and helping attract would-be investors. 

A business plan should include all of the following essentials: 

• Executive summary: Write a short summary of your business idea and goals.
• Company description: Talk about your company's core mission and business model.
• Market research and potential: Analyze your target market and industry trends.
• Competitive analysis: Assess your competitors and your unique advantages.
• Products and services: Describe your offerings and their benefits.
• Marketing and sales: Include your strategies for reaching and retaining customers.
• Business financials: Make financial projections, including income statements and cash flow forecasts.
• Management and leadership: Share an overview of your team's expertise and experience.
• Funding request: Detail your funding needs and how you'll use the funds.
• Appendix: Add supporting documents, such as market research data or financial statements.

Free business plan templates are available to help you kickstart your business planning process. West Virginia also offers helpful business plan resources, including information on special programs such as business loans for veterans.

Step 4. Choose your business entity: Types of business entities in West Virginia

Whether you’re going it alone or plan to create a more formal structure with shareholders, your business entity structure will determine how you pay taxes, the liabilities in your organization, and your business profitability and growth. Here are the main types of structures for West Virginia small businesses:

Sole Proprietorship

A business owned and operated by one person, with no legal distinction between the owner and the business.

General Partnership

A business owned by two or more people who share profits, losses, and management responsibilities.

Corporation 

A legal entity separate from its owners, with shareholders who have limited liability for the company's debts and obligations.

Limited Liability Company (LLC)

A hybrid business structure combining the limited liability of a corporation with the tax flexibility of a partnership. Learn more about LLCs.

Step 5. Secure funds: West Virginia small business funding, loans, and grants 

Your West Virginia small business needs money to get up and running. Funding costs and specific needs will vary for every business, but most will need startup capital for expenses like securing a location, purchasing inventory and equipment, and possibly hiring employees. These are a few of the most common ways to secure funding for a small business in West Virginia: 

Other state-based resources include: 

West Virginia Small Business Grants

The West Virginia STEP program offers grants of up to $15,000 to businesses looking to expand their markets. You can also access a wide array of state-supported small business grants.

West Virginia Economic Development Authority Loans

You can explore a variety of small business loan options through the West Virginia Economic Development Authority. 

West Virginia Capital Access Programs (WVCAP)

WVCAP offers funding opportunities to credit-worthy companies that may not fit traditional lending models. Businesses can use the funds to purchase equipment, expand facilities, or access working capital.

Step 6. Choose your West Virginia business name and West Virginia DBA

Select a business name that reflects your brand identity and will help you stand out from current and future competitors. And remember, you’ll need to make sure your business name meets West Virginia’s name availability requirements. You can conduct an entity search to make sure your business name is unique. 

Reserve your business name

Once you’ve determined your selected business name meets all state requirements, you can register your business online. If you prefer to register by mail, the process is a bit more involved. First, you’ll need to register your business structure with the Secretary of State Business Division. Then, you’ll apply for your Business Registration Certificate (also known as your Business License) via the West Virginia State Tax Department.

Filing a DBA (Doing Business As)

If you plan to operate your business under a fictitious or Doing Business As (DBA) name, you’ll need to register it with the West Virginia Secretary of State. You can do so online at the same time you register your legal entity name, or you can register by mail with a $25 filing fee. 

Step 7. Pick a business location in West Virginia

Looking for a location to start your new business? West Virginia gives you plenty of great options to choose from among its gorgeous landscapes. From the heart of the Charleston-Huntington metro to the college town bustle of Morgantown and beyond, there’s a place for any small business in West Virginia.

Local business laws can vary, so for any city you’re considering, look into taxes, permitting, and other rules you’ll be subject to as a business owner. If you plan to run your business from your home to save money, for example, be sure to look at the local municipality’s laws that regulate home-based businesses. 

These are some of the areas in West Virginia that offer the most economic opportunity for new businesses:

Charleston

• The state capital and most populous city in West Virginia, Charleston has a strong tourism industry and business-friendly climate.
• Energy and chemical manufacturing are key industries here, though opportunities are growing in healthcare, technology, and advanced manufacturing. 
• The Charleston Area Alliance offers a variety of resources for small businesses and startups. 

Huntington

• A scenic river city known for its historic riverfront district, Huntington has a strategic location with access to numerous transportation networks.
• The city offers lower startup costs than larger metro areas and has a supportive small business culture.
• Healthcare, education, manufacturing, transportation and logistics, and hospitality are key industries in Huntington. 
• Visit the City of Huntington’s website for access to a full listing of local business resources. 

Morgantown

• Home to West Virginia University, Morgantown offers a combination of small-town atmosphere with big-city opportunities. 
• The local university is both a major economic driver and a supplier of a talented local workforce. 
• Morgantown’s economy is driven primarily by higher education and healthcare. 
• Access more information about starting a business in Morgantown on the city website. 

Parkersburg

• Situated along the Ohio River, Parkersburg enjoys a strategic location close to major transportation routes.
• With lower operating costs than large cities and a strong workforce, the city offers opportunities for small businesses looking to minimize expenses.
• Chemical and plastics manufacturing, oil and gas, transportation and logistics, and healthcare are all strong business sectors in Parkersburg. 
• Access small business support and resources through the Wood County Economic Development office. 

Step 8. Find a West Virginia registered agent

West Virginia requires you to have a registered agent if you operate a business, whether as a professional service or an individual. Your registered agent acts as a point of contact for your business’ important state and legal mail. Registered agents are required to have a physical mailing address (not a P.O. Box or remote location) in the state. They’ll also need to keep regular business hours. 

You can choose to be your own registered agent, or you can appoint a trusted friend or family member to do so, as long as they meet the above requirements. If you use a service for a West Virginia registered agent, you’ll pay a fee likely ranging from $50 to $600 per year. 

Step 9. Get a West Virginia EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although West Virginia doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. You can apply for a free EIN through the IRS website. 

Step 10. Register as a small business in West Virginia

When launching a small business in West Virginia, you’ll need to register it, regardless of your business type or structure. The forms you’ll be required to submit and fees you’ll be required to pay will depend on your business entity type. Most businesses can register and pay fees through the WV One Stop Business Portal.

Step 11. Register for your business license and permits in West Virginia

Depending on your industry, you may need state-level business licenses and permits to operate in West Virginia. Some localities may also require permits, so perform your due diligence before you decide where you want to start up your business. Some of the common licenses and permits you might need include licensing to sell alcohol and tobacco or health permits for food service businesses.

Do you need a business license in West Virginia?

Businesses in regulated professions, specialized trades, or activities requiring particular permits—such as contractors, health services, and other professions overseen by state or local authorities—must obtain the appropriate licenses. You can review all the types of licensing and permitting requirements in West Virginia, including locality-specific ones, through the WV One Stop Business Portal. 

Step 12. Secure insurance for your West Virginia small business

To protect your West Virginia business assets and tangible property, you’ll need business insurance to help mitigate costs from accidents, property damage, or liability. Extreme weather, from floods to windstorms, is not uncommon in West Virginia, so make sure you’re adequately protected if you have a brick-and-mortar store, warehouse, or industrial facility. Other types of insurance, such as workers’ compensation insurance, are required for most businesses.

Types of small business insurance in West Virginia

Common types of insurance that your West Virginia business might need include:

Step 13. Prepare to pay taxes on your business in West Virginia 

Understanding your tax obligations as a small business owner is crucial for keeping your business compliant with state and federal laws. Make sure you understand what West Virginia taxes you may owe on your business income, including the common types that we’ll discuss below.

State income tax

West Virginia has a graduated state individual income tax, with rates ranging from 2.36% to 5.12%.

Corporate franchise tax

West Virginia’s corporate income tax rate is 6.5%.

Payroll taxes

If you have employees, you’ll be liable for payroll taxes, including filing and reporting state unemployment insurance and West Virginia withholding tax.

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records.

Tax credits and incentives for West Virginia employers

West Virginia offers a variety of tax credits and incentives designed to support small business growth and development. Here’s a sampling:

• Corporate Headquarters Credit: Companies that relocate their corporate headquarters to West Virginia are eligible for tax credits if they create 15 new jobs within the first year. 
• Economic Opportunity Credit: Qualified small businesses that create 10 new jobs within a specified time limit can offset up to 80% of their corporate net income tax and personal income tax (on flow-through income only) attributable to qualified expansion investments. 
• High Tech Manufacturing Credit: Businesses that manufacture certain computers and peripheral equipment, electronic components, or semiconductors and create at least 20 new jobs within one year can receive a tax credit to offset 100% of the corporate net income tax for 20 consecutive years.
• Sales Tax Exemption for Certain E-Commerce Businesses: If you engage in e-commerce, computer-related sales of tangible personal property and services are exempt from the consumer sales and services tax.

Step 14. Set up your business bank account

One of the first things you need to do when starting a small business in West Virginia is set up a business bank account to manage your finances. Here’s how: 

1. Get your paperwork in order, from registrations and permits to licenses and your EIN, to open your small business bank account. 
2. Look for a bank that provides the loan products and services you need. 
3. Apply for a credit card either through your bank or a third-party company so you can begin establishing business credit and charging business-related expenses. 
4. Choose an accounting software and tie it to your business bank account to manage everything from payroll to invoicing. 
5. Find a professional accountant who understands your industry and Louisiana tax laws to help you navigate finances and other bookkeeping items.

Additional resources to get you started

The resources listed here can help you get a leg up with funding, training, and other critical parts of starting a business.

State resources

• WV One Stop Business Portal: An all-in-one portal for West Virginia business owners that includes everything from business plans to online registration for business licenses.
• WV Small Business Development Center: Another government resource that offers extensive training, counseling, and education resources for small business owners.
• WV BusinessLink: Business owners can use this site to find options for small business funding, plus how-to guides and local business community events.
• WV Hive Network: This regional development project includes business counseling services, educational programs, networking fairs, and more.

Federal resources

• Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.
• Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 
• Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 
• SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.
• U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America. 

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