Establishing an LLC in West Virginia can benefit business owners who wish to have operational flexibility while protecting their assets.
Forming your LLC is just part of the journey, and maintaining compliance with the IRS tax return filing requirements is crucial to avoid penalties.
In this article, we will discuss the process of IRS tax return filing for West Virginia LLC, focusing on classifying the taxes, reporting the taxes, deadlines, and other relevant details.
How does the IRS tax West Virginia LLCs?
The IRS does not provide a unique tax classification for LLCs. Instead, LLCs are taxed based on their structure:
Single Member LLC (Disregarded Entity)
As a default rule, the IRS treats single-member LLCs (SMLLCs) as disregarded entities for tax purposes. Thus, they don’t pay any separate taxes, as their income and expenditures “flow through” to the owner’s personal return.
Federal Tax Filing Requirements
- Form 1040: Individual Income Tax Return
- Schedule C: Profit or Loss from Business
- Schedule SE: Self-Employment Tax (if applicable)
- Other forms, if applicable: Schedule E (rental income) or Schedule F (farm income)
💡 Example: If you made a net income of $50,000 from your LLC, you will report it on Schedule C and pay self-employment tax on it via Schedule SE.
Multi-Member LLC (Partnership)
If your West Virginia LLC has two or more members, it is treated as a partnership by default. The LLC must file a business tax return and issue K-1 forms to each member detailing income and expenses allocated to them.
Federal Tax Filing Requirements
- Schedule K-1: Issued to each member
- Form 1065: U.S. Return of Partnership Income
- Members include K-1 details on their Form 1040
📌 Important: A partnership does not incur federal income tax; however, the individual members are required to report that income on their next tax return.
LLC Taxed as a Corporation
Owners of an LLC may choose to have their company taxed as a C corporation or an S corporation for operational purposes or tax advantages.
To elect corporate taxation:
C Corporation Filing Requirements:
- Form 1120 – By April 15
- The corporation will owe taxes on profits earned.
- Shareholder, on payment of profit share, owing tax (dividend: double tax)
S Corporation Filing Requirements:
- Form 1120-S – By 15 March
- K1 (Schedule K) – For every shareholder
- Profits allotted to owners: pass through, no double tax
💡Tip: S Corporations are a commonly used tax reduction strategy for self-employment, particularly if you are paying yourself a reasonable salary.
State-Level Tax Responsibilities for West Virginia LLCs
As well as federal taxes, West Virginia LLCs have state level obligations. An LLC does not typically pay the state income tax, but the members of the LLC may personally owe the state income tax on the income of the LLC.
About state LLC taxes in West Virginia:
✅ Business Registration Tax
- West Virginia charges a one-time fee of $30 when registering your LLC.
- Filing is done via the West Virginia State Tax Department’s online portal.
✅ Personal State Income Tax
- In comparison to the rest of the USA, West Virginia has a reasonably low income tax range:
3% to 6.5%, depending on income - Profits from the LLC that “pass through” to owners will have to be reported on their personal West Virginia tax returns.
✅ Sales and Use Tax
- Presently levied at 6%
- Must obtain a sales tax permit if you are selling tangible products or services that are taxable.
✅ Employer Withholding Tax
- Applicable to LLCs with employees. You are required to collect and pay income tax on the employee’s wages to the state (“withholding”)
✅ Municipal or Local Taxes
- Some municipalities impose special municipal business or occupational taxes in addition to general city taxes.
Annual IRS Filing Deadlines
| LLC Type | IRS Forms | Filing Deadline |
| Single-Member LLC | 1040 + Schedule C & SE | April 15 |
| Multi-Member LLC | 1065 + Schedule K-1s | March 15 |
| S Corporation | 1120-S + Schedule K-1s | March 15 |
| C Corporation | 1120 | April 15 |
⏳ You may file Form 7004 (business returns) or Form 4868 (individual returns) to request an extension, but any taxes owed are still due on the original deadline.
Self-Employment Tax for LLC Owners
As an LLC, you are likely liable for self-employment taxes if LLC income is “passed through” to you (Social Security and Medicare):
- The rate is 15.3% (12.4% for Social Security + 2.9% for Medicare)
- Applicable to net earnings of $400 or more.
Must file Schedule SE alongside your Form 1040.
🧮 Tip: Opting for an S Corp election may decrease self-employment tax liability if you pay yourself a reasonable salary and take the remainder in dividends.
Filing Requirements When There’s No Income
Even if your LLC did not engage in any business or generate any income, you might still be required to file federal returns:
- Single-member LLCs: Often do not have to file if no income or expenses are incurred (Consult a tax professional)
- Multi-member LLCs / S Corps / C Corps: Required to file Form 1065 / 1120-S / 1120 regardless of any activities
“Issue zero returns” keeps your LLC in good standing and avoids placing future red flags with the IRS.
Penalties for Late Filing or Non-Compliance
Tax return noncompliance usually attracts heavy penalties. For instance:
- Late filing of Form 1065 or 1120-S incurs a $220 charge per member per month (2024 Rate) up to 12 months
- For Form 1120, the failure to file penalties start at 5% of the unpaid tax value monthly
- Additional penalties include interest on unpaid taxes
🚨 Maintaining compliance aids in keeping your Limited Liability Corporation’s reputation and protects you from IRS audits.
Common Mistakes West Virginia LLC Owners Make
Pay attention to the following mistakes that are common during the tax period:
❌ There is no income, so filing does not apply
❌ Missing filing date for Form 1065 or 1120-S
❌ Did not provide Schedule K-1s
❌ Classifying some contractors as employees
❌ Failing to maintain organized bookkeeping records
Don’t worry; these mistakes can be avoided with proper tax strategy and professional assistance.
How EasyFiling Can Help
LLC tax filing complexity can be simplified with EasyFiling. We assist with:
- Tax return preparation for single-member and multi-member LLCs with the IRS
- Assistance with S Corp and C Corp elections
- Bookkeeping and accounting
- Obtaining an EIN
- Compliance services
Whether you’re a solopreneur or the owner of a business located in West Virginia that is scaling up, we’re here to help with meeting your tax responsibilities.
👉 Contact us today and let’s create a plan to alleviate the stress of tax season.
Final Thought
As a West Virginia LLC owner, filing IRS tax returns is an essential business obligation.
Operating alone or with a team, having a clear understanding of your LLC’s tax system, and having a well-defined schedule of critical timelines can prevent complications in business operations.
From managing federal forms to state-specific compliance requirements, EasyFiling makes LLC tax filings in West Virginia and other states stress-free.
Frequently Asked Questions (FAQs)
If my LLC did not generate revenue in West Virginia, do I still need to file taxes?
A multi-member LLC or corporation will still need to file a zero activity return, which is not harmful and helps avoid penalties.
Is there an annual franchise tax for LLCs based in West Virginia?
No, but any income, sales, or employer tax that applies to your business needs to be paid.
Can I submit LLC taxes on my own?
Of course, but only if your tax situation is straightforward. Complex returns, S Corp election, or multi-member filings require professional assistance.
What happens if I fail to submit my taxes before the deadline?
There are penalties and interest fees associated with late payment. You should file as soon as possible and try to submit a request for extension using Form 7004 or Form 4868.
Swostika Silwal
