How Much Does It Cost To Register A Sole Proprietorship In Wa

If you're currently self-employed in the state of West Virginia, or if you lot're looking to enter the world of one-person business organization ownership, you've probably looked into becoming a sole proprietor.

The sole proprietorship is the simplest concern 'format' in America, but that doesn't hateful that in that location aren't rules and regulations to follow when you operate one. In add-on, there are some limits to the functionality of a sole proprietorship.

In this guide, we'll walk you through the steps to setup a sole proprietorship properly, and help you determine whether or not a sole proprietorship is a good choice for your business concern.

Guru Tip: It's of import to sympathise that a sole proprietorship does not offering personal asset protection as the LLC (limited liability company) does. The LLC is the nearly popular entity for small businesses and is piece of cake to create – by doing forming it yourself or hiring a cheap LLC service.

How to Become a West Virginia Sole Proprietor

When it comes to existence a sole proprietor in the state of W Virginia, in that location is no formal setup procedure. There are also no fees involved with forming or maintaining this business type. If you lot want to operate a West Virginia sole proprietorship, all you need to do is start working.

Even so, just considering information technology'southward so like shooting fish in a barrel to become started doesn't mean there aren't some additional steps yous should take forth the fashion. While these parts of the process aren't strictly required, many sole proprietors notice that they are in their best interests.

DBA Acquisition

A doing business as (DBA) name is a crucial office of many sole proprietorships, equally it enables y'all to use an assumed name for your business, rather than your ain personal name. The advantages of acquiring a DBA start with image ― most customers feel that an assumed proper name is more professional and trustworthy than doing business with a company that uses its owner's personal name instead.

That said, sole proprietors can sign up for a business concern banking company account using their DBA name, which is another step that goes a long manner toward making customers feel more comfortable doing concern with you.

In West Virginia, DBAs are sometimes referred to as "trade names". Before registering a merchandise name with the West Virginia Secretary of Land, you'll need to cheque its availability using the State's Business concern Organization Search database. Later, call the Secretary of Country Business organization Sectionalisation at (304) 558-8000 to ask for an informal proper noun check.

When y'all confirm that your desired DBA is available, yous may claim it by registering online with West Virginia's I Stop Business Portal.

Go Your Business concern Domain

To fully encompass the business name, register your URL. With GoDaddy yous'll be able to apace build a company website and then that nobody else tin can use or have it.

Determine Taxation Requirements

Sole proprietors without employees usually don't need to larn a federal revenue enhancement ID number (EIN), because as a 1-person business organisation, you tin can typically but apply your own social security number for virtually things an EIN is used for. Still, if yous would rather not use your SSN for privacy purposes, it would exist a good idea to get an EIN regardless.

Beyond that, the nature of your business will determine which taxes use to you lot every bit a sole proprietor.

For example, if you sell soft drinks, tobacco, fuel, or any type of alcohol, you'll be subject area to paying the corresponding taxation. These taxes (known as excise taxes) and others are all detailed on the Excise Tax Page of the Westward Virginia State Tax Section website. Some other common tax is Sales and Utilize tax.

Y'all will detect your state-level tax liability when you obtain your West Virginia business registration certificate from the State Tax Department. This can be done either online or using the WV/BUS-APP grade.

Obtain Business organisation Licenses and Permits

There isn't a requirement in West Virginia for sole proprietors to learn a general business organisation license, but depending on the nature of your business organisation y'all may demand other licenses and/or permits to operate in a compliant style.

Due west Virginia has both regulatory and occupational licenses that may apply to your Westward Virginia sole proprietorship. Thankfully, the state makes license registration quite easy through the WV Ane Stop Business Portal. More data on licensing in general can be plant in the Apply for Licenses and Permits document provided by the West Virginia Business Division.

In addition, y'all should bank check to run into if your business needs any licenses or permits on the local level.

Often, West Virginia cities and counties will accept their ain license and permit specifications. For example, Huntington, Morgantown, and Charleston all have their own local business license requirements.

What Is a West Virginia Sole Proprietor?

Every bit opposed to a corporation or express liability company (LLC), the sole proprietorship is not a legal concern entity. The sole proprietorship is a one-person business organization that is not considered to be a singled-out entity from the person who owns information technology, and information technology is ofttimes operated using the possessor'southward personal name.

Hither are the 3 primary things yous need to know:

Tax Responsibilities

Considering there'southward no distinction betwixt the owner and the business organization itself, sole proprietors don't need to file business taxation returns ― they instead just merits any business organisation profits or losses on their personal tax returns.

Contracts

Sole proprietors are allowed to sign contracts using their personal proper noun, and along those same lines, customers can write checks to the business by using the sole proprietor'due south proper noun.

More than Flexible

The other large difference betwixt sole proprietorships and more formal business organization structures is the fact that sole proprietors are allowed to commingle business organisation and personal assets every bit much as they desire to. With LLCs and corporations, ownership is required to go on their assets separate from those of the company. The downside of this aspect for sole proprietors is that if your business concern is sued, creditors are free to pursue your personal assets similar your house, machine, personal banking concern accounts, etc. For corporations and LLCs, creditors are limited to your business assets.

Determination

While the sole proprietor is such a uncomplicated business classification that Westward Virginia doesn't fifty-fifty require a business registration process or any type of fees, depending on how you apply your sole proprietorship and what industry you lot operate in, you yet might have some important steps that need to be taken.

When information technology comes to issues of taxation, licenses and permits, or even the name you want to telephone call your sole proprietorship, you practice need to be vigilant to brand sure you're not overlooking anything.

We promise this guide helped you answer whatsoever questions you had for sole proprietorships in West Virginia, and we wish you lot success with your business!