Perhaps you are already familiar with an LLC concept as it is the most popular form of a business organization existing nowadays. If you are not, read on for more details.
LLC stands for limited liability company. It is a type of business organization where the owners do not risk their personal assets if they go bankrupt. They do not have to pay from their personal savings to cover the company’s debts or participate in lawsuits pursued against the company. All that is possible because they sign a particular legally binding document that proves their limited liability and protects them from these challenges.
This document is called an LLC operating agreement. All concerned parties should fill it out, append their signatures, and get a copy of the covenant to enforce the agreed-upon terms and conditions regarding their company’s management procedures and rules. Although the State of West Virginia does not make it obligatory to sign the agreement, it is still better to have it, just in case.
If you need to fill out an LLC operating agreement in West Virginia, we suggest using the valid template and our innovative form-building software that will help you complete it as quickly and effortlessly as possible. You do not have to search for every piece of the necessary information on the Internet. We supply everything you need on our website. In the following sections, you will learn more about the West Virginia laws governing LLCs’ activities and know how to form your own company in this state.
The West Virginia Code contains all the guidelines and definitions concerning LLCs in Chapter 31B, also known as the Uniform Limited Liability Company Act. Apart from this, it contains some general provisions about how to act in a particular situation, the required documents, the amount of fee charged for any of your requests, and LLCs’ peculiarities and purposes.
Usually, it is hard to look through the official papers and understand them quickly as they are too many and complicated. We will briefly discuss the key points from the Chapter about LLCs’ regulation and distinctive features compared to other forms of business for your convenience.
According to this official record, a limited liability company can be considered as such only if it is organized and developed under the mentioned State Law. It can have either one or multiple members and both individuals and business entities as owners. Furthermore, an LLC can be managed by a member or an outsourced manager explicitly hired for this position. Whether you choose to manage your company yourself or look for another person to do so depends on your business’s purposes and will.
You need to know the LLC specifics to understand your business purposes better. Here are three features that distinguish an LLC from other organization forms.
The steps for registering an LLC in West Virginia are similar in all the states. Let us guide you through all of them step by step.
1. Choose the Company’s Name
There are some state rules on naming a business entity in West Virginia. First of all, ensure your brand name is not used elsewhere by other entrepreneurs. Second, make it distinguishable in public from government agencies and other organizations.
Last but not least, your company name should contain the abbreviation “LLC” or its varieties. Furthermore, if your company offers professional services and has the words indicating it (like a “university” or “attorney”), you should have employees with the respective licenses.
2. Find a Registered Agent
After choosing a name, assign an Agent of Process to perform such duties as sending reports to the Secretary of State and receiving legal documents and important notices regarding your business. Simply put, this person connects you with the State to keep you both informed about different activities.
An individual or company can occupy this position. If it is an individual, they must be a West Virginian resident. If it is a company, it must be licensed to operate in this particular state. You can choose an agent from your colleagues or be an agent yourself.
3. File the Articles of Organization
This legal paper is somewhat similar to the certificate of title; it proves your ownership and the LLC’s existence. With the Articles, the Board (or responsible people) can register business legally and perform various operations. It usually contains important information about the company’s legal title, its membership, contact details, and the operating field.
To file this paper, you should pay some registration fee, which is about $100. You can send it either by mail or email.
4. Complete the West Virginia LLC Operating Agreement
As we have already said, an operating agreement is a vital record, although it is not obligatory in West Virginia. It regulates your company’s operating procedures and other inside affairs, thus protecting you from future conflicts with other members.
5. Get a Federal Tax ID Number
This number is also known as the Employer Identification Number (EIN) issued by the Internal Revenue Service (IRS). It is like a Social Security Number but for organizations. You need it to pay federal or state taxes, open and manage a bank account, and hire the company’s staff.
6. Report Annually
Once you have completed all the steps, remember to send the company’s reports to the State every year. If you do not, you will have violated state norms.