Charleston, WV Business License Guide

Last updated: August 2025

This is a practical, no‑nonsense roadmap to getting legal and staying compliant when doing business in Charleston, WV. It covers state and city steps, costs, deadlines, contacts, and the gotchas that cause delays and fines. Every claim is sourced to official government pages you can click to verify.

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What You Actually Need in Charleston (Overview First)

The most important fact: West Virginia doesn’t have a single statewide “general business license,” but nearly all businesses must register with the State Tax Department and also meet City of Charleston requirements. In practice, you’ll likely do four main things:

  • Form your business (LLC/corporation) or register your trade name with the West Virginia Secretary of State.
  • Get the West Virginia Business Registration Certificate from the State Tax Department (one‑time fee $30).
  • Register with the City of Charleston for the city business license and B&O tax account, and set up city service fee withholding if you have employees working in the city.
  • Get any sector permits (health, contractor, alcohol, etc.) before opening.

Key sources:

Reality check: City and state registrations are separate. Many delays happen because owners assume the state registration covers the city. It doesn’t.

What to do if this doesn’t work:

Step‑by‑Step: Do These in Order

1) Form Your Business (or Register Your Trade Name) with the WV Secretary of State

Action first:

What to know:

  • Filing fee for an LLC Articles of Organization is typically $100 statewide. See the fee schedule and entity types: WV SOS – Business Filings & Fees (official; accessed Aug. 2025).
  • West Virginia requires annual reports for most entities, due by July 1 each year, with a filing fee generally $25. See: WV SOS – Annual Reports (official; accessed Aug. 2025).
  • Trade names (DBAs) for sole proprietors/partnerships must be registered with SOS before using them publicly. Fees vary; check the current amount on the SOS site: WV SOS – Trade Name Registration (official; accessed Aug. 2025).

Documents:

  • Articles of Organization/Incorporation (if forming LLC/corp).
  • Owner IDs and mailing address.
  • Registered agent details (WV physical address required).

Timelines:

  • Online filings are often processed faster than paper. Check current processing estimates on the portal: WV One Stop – Processing/Help (official; accessed Aug. 2025).

Real world example:

  • A Charleston coffee shop forms an LLC online for $100 and files the annual report each spring for $25 before July 1.

What to do if this doesn’t work:

2) Get an EIN (Tax ID) from the IRS

Action first:

What to know:

  • You need an EIN if you’ll hire employees or want a business bank account separate from your SSN.
  • Cost is $0.

Documents:

  • Responsible party’s SSN/ITIN, business formation details.

What to do if this doesn’t work:

3) Register with the WV State Tax Department (Business Registration Certificate)

Action first:

What to know:

  • Required for most businesses engaging in business in WV under W. Va. Code §11‑12. See the statute: West Virginia Code §11‑12‑3 (Business registration; fee) (official; accessed Aug. 2025).
  • The certificate generally does not expire unless canceled or revoked (see Tax Department guidance).
  • You’ll select tax accounts you need (e.g., sales/use, employer withholding).

Documents:

  • SOS file number (if formed an LLC/corp).
  • EIN, owner info, business start date, NAICS code.

Timelines:

  • Online registration is typically processed quickly; the certificate can be printed when approved.

What to do if this doesn’t work:

  • Contact the WV State Tax Department via the portal above, or use taxpayer services listed on that page.
  • Free help: WV SBDC – Tax Registration Prep (official; accessed Aug. 2025).

4) Comply with City of Charleston Requirements (License + B&O + City Service Fee)

Action first:

  • Visit the City’s Finance Department page to apply for the city business license, open a B&O tax account, and review the City Service Fee rules: City of Charleston – Finance Department (official; accessed Aug. 2025).

What to know:

  • Charleston imposes a municipal Business & Occupation (B&O) tax on gross receipts by business classification. Rates and filing frequency depend on activity and receipts. See details and forms on the Finance Department site: Charleston Finance – B&O Tax Resources (official; accessed Aug. 2025).
  • Charleston also has a municipal sales & use tax of 1%, added to the state 6%, for a combined 7% on taxable sales in the city. The state administers collection once you set up sales tax. Confirm the Charleston rate on the state list: WV Municipal Sales & Use Tax – City Rates (official; accessed Aug. 2025).
  • City Service Fee: Charleston requires employers to withhold a weekly city service fee from employees working in the city. The standard fee is commonly cited as $3/week per employee; confirm current rate, remittance schedule, and forms on the Finance page: Charleston Finance – City Service Fee (official; accessed Aug. 2025).

Documents:

  • State Business Registration Certificate.
  • EIN.
  • Business address in Charleston; ownership info.

Timelines:

  • City license/account setup time varies. Start early—especially if you need inspections or approvals tied to your license.

Real world example:

  • A boutique on Capitol Street collects 7% sales tax, files city B&O returns per the assigned schedule, and withholds the city service fee for its employees who work in Charleston.

What to do if this doesn’t work:

  • Contact the Finance Department using the page above for direct help and current forms.
  • In‑person assistance: ask WV SBDC to walk through the city steps with you: WV SBDC – Find a Center (official; accessed Aug. 2025).

5) Zoning, Occupancy, and Signage (Before You Sign a Lease)

Action first:

What to know:

  • Home‑based businesses may need a home occupation approval. Commercial spaces may require inspections and permits before opening.
  • Buildouts, change of use, new signage, and exterior changes usually require permits. Fees and timelines vary based on scope—check the city’s permitting guides and fee schedules on the Planning page above.

Documents:

  • Floorplan/site plan (if applicable).
  • Contractor info if doing work.
  • Prior certificate of occupancy (if changing use).

Timelines:

  • Simple signage permits can be quick; full renovations take longer due to plan reviews and inspections. Start this process early to avoid rent without revenue.

What to do if this doesn’t work:

  • Ask Planning staff for a pre‑application meeting through the page above.
  • If you hit roadblocks, consider an alternate location or a phased opening plan (e.g., pop‑ups or a temporary location) while permits are pending.

6) Health Department Permits (Food, Body Art, Pools)

Action first:

  • If you serve food, drinks, operate a commissary, food truck, tattoo/body art, or pools/spas: contact the Kanawha‑Charleston Health Department for permits and inspections: KCHD – Environmental Health Programs (official; accessed Aug. 2025).

What to know:

  • Plan reviews may be required before you build a kitchen or buy equipment. Health permit fees, inspections, and training requirements are posted by KCHD (fees vary by operation type).
  • Food trucks typically need both commissary arrangements and local health permits; coordinate before purchasing equipment.

Documents:

  • Menu, facility layout/equipment list (for food service).
  • Food manager/handler training certificates (as required).
  • Water/wastewater details (especially if using wells or septic).

Timelines:

  • Allow several weeks for plan review plus inspection scheduling. Don’t schedule a grand opening before permits are issued.

What to do if this doesn’t work:

  • Ask KCHD about a pre‑opening walkthrough and any temporary options for soft openings. Use the contact info and forms on the KCHD page above.

7) Industry‑Specific Licenses You Might Need

Action first:

Fees vary by license type. Always use the agency’s current fee schedules:

  • Contractors: fees depend on classification and exam requirements. See Division of Labor pages above.
  • Alcohol: license class determines fees; see WVABCA schedules.
  • Lottery: license and machine fees posted by WV Lottery.

What to do if this doesn’t work:

  • Contact the specific agency through the links above for a checklist and timelines.
  • Ask WV SBDC to help sequence your license applications: WV SBDC – Request Counseling (official; accessed Aug. 2025).

8) Employer Setup (Withholding, UI, Workers’ Comp, New Hire)

Action first:

What to know:

  • WV withholding returns are filed on schedules assigned by the Tax Department. Due dates are posted here: WV Tax – Withholding (official; accessed Aug. 2025).
  • WorkForce WV assigns UI rates (new employer rates vary by industry and year). Check your rate notice and the agency page for current percentages (rates change annually).
  • Workers’ comp is purchased from private carriers authorized in WV; the Insurance Commissioner site explains coverage requirements.
  • New hires must be reported within the required timeframe set by the state program; see the New Hire site above for the current deadline and methods.

Documents:

  • EIN, business registration, payroll setup, and employee details.

What to do if this doesn’t work:

  • Ask your payroll provider to enroll and file on your behalf (ADP, Paychex, Gusto, etc.).
  • Free assistance: WV SBDC – HR & Payroll Basics (official; accessed Aug. 2025).

Costs, Taxes, and Filing Schedules (At‑a‑Glance)

Use these tables to plan your budget and calendar. Always verify current amounts on the linked official pages (rates can change).

Table A: Core Registrations and Typical Fees

Item Who Requires It Typical Cost Source
LLC Articles of Organization WV Secretary of State $100 WV SOS – Business & Licensing (official; accessed Aug. 2025)
Annual Report (most entities) WV Secretary of State $25 (due by July 1) WV SOS – Annual Reports (official; accessed Aug. 2025)
Business Registration Certificate WV State Tax Department $30 (one‑time) WV Tax – Business Registration (official; accessed Aug. 2025)
City Business License City of Charleston Fee varies by business type (check current schedule) Charleston Finance – Licenses (official; accessed Aug. 2025)
B&O Tax Account City of Charleston No separate fee to open; tax due on gross receipts Charleston Finance – B&O Tax (official; accessed Aug. 2025)

Table B: Sales/Use Taxes Inside Charleston

Tax Rate Who Collects When to File Source
WV State Sales/Use Tax 6% WV State Tax Department Due per assigned schedule (often by the 20th of the following month for monthly filers) WV Tax – Sales & Use Tax (official; accessed Aug. 2025)
Charleston Municipal Sales/Use 1% Collected by the State with your WV sales tax return Same filing as state sales tax WV Tax – Municipal Sales & Use Tax Rates (official; accessed Aug. 2025)
Combined Rate in Charleston 7% State collects and remits to city Same as above State municipal list above

Example: You sell $10,000 in taxable goods in a month at a Charleston store. You collect $700 in sales tax ($600 state + $100 municipal) and remit through your WV sales tax return.

Table C: City B&O (Conceptual Overview—Rates Vary by Activity)

Activity Type Basis Typical Filing Frequency Rate Info
Retail, Wholesale, Services, Contracting, Amusement, etc. Gross receipts by classification Monthly or quarterly (assigned by city) Rates and classes are posted by Charleston Finance. Confirm your exact class and rate: Charleston Finance – B&O Tax (official; accessed Aug. 2025)

Note: B&O is separate from sales tax. Many businesses owe both.

Table D: Employer Obligations

Item Cost/Rate Filing/Deadline Source
WV Withholding Varies by payroll Assigned schedule (see state page) WV Tax – Withholding (official; accessed Aug. 2025)
Unemployment Insurance (UI) Rate assigned by WorkForce WV Quarterly UI returns WorkForce WV – Employers (official; accessed Aug. 2025)
Workers’ Compensation Premiums vary by carrier and class Continuous coverage required WV OIC – Workers’ Compensation (official; accessed Aug. 2025)
New Hire Reporting No fee Report within the timeframe posted on New Hire site WV New Hire Reporting (official; accessed Aug. 2025)

Table E: Common Local Permits

Permit Who Issues Typical Trigger Source
Certificate of Occupancy City of Charleston Opening a new space; change of use; after buildout Charleston – Planning/Building (official; accessed Aug. 2025)
Sign Permit City of Charleston New or changed signage Planning page above
Food Establishment Permit Kanawha‑Charleston Health Dept. Serving food/drink; mobile food KCHD – Environmental Health (official; accessed Aug. 2025)
Alcohol License WVABCA Selling/serving alcohol WVABCA – Licensing (official; accessed Aug. 2025)
Contractor License WV Division of Labor Contracting work for others WV DOL – Contractor Licensing (official; accessed Aug. 2025)

What to do if this doesn’t work:

  • For unclear fees or schedules, use the linked pages and contact forms to get the current dollar amounts and due dates directly from the agency.
  • Ask WV SBDC to audit your setup for gaps: WV SBDC (official; accessed Aug. 2025).

Timelines You Can Actually Expect

Start with the items that can hold up everything else: zoning, occupancy, health plan review, and city license approval. Here’s a realistic order with planning notes.

  • Entity Formation (SOS): online filings usually faster; build 1–10 business days into your plan depending on volume. Verify current processing on the portal: WV One Stop (official; accessed Aug. 2025).
  • EIN: instant online approval for most applications via the IRS site above.
  • WV Business Registration Certificate: online processing is generally quick; allow 1–3 business days to be safe.
  • City of Charleston License & B&O Account: varies by workload. If inspections are needed, timelines extend.
  • Zoning/Occupancy/Permits: can range from a few days (minor permits) to several weeks (buildouts, plan review).
  • Health Permits: plan for several weeks including plan review and final inspection.
  • Employer Accounts: allow 1–2 weeks to get accounts, rates, and run a test payroll.

What to do if this doesn’t work:

  • Sequence the work: while waiting on inspections, finalize your sales tax setup and payroll accounts so you can open immediately after approvals.
  • If you’re facing construction delays, consider a soft opening or pop‑up at a permitted location to start sales legally (check health and city permit allowances first).

Real‑World Examples (Charleston Use Cases)

Example 1: Coffee Shop on Capitol Street

  • Forms an LLC online ($100). Files annual report ($25) by July 1.
  • Registers for WV Business Registration Certificate ($30).
  • Confirms commercial zoning and gets a certificate of occupancy.
  • Completes KCHD plan review and food permit (fees vary; check KCHD).
  • Registers for sales tax and collects 7% inside Charleston.
  • Opens a city B&O account and files per city schedule.
  • If hiring, sets up withholding, UI, workers’ comp, new hire reporting.

Reality checks:

  • Espresso machine ventilation and grease/sanitary requirements can trigger extra building permits. Start kitchen plans with KCHD early.
  • Don’t put up a sidewalk sign without checking sign rules.

Example 2: Home‑Based E‑Commerce

  • Registers a trade name (DBA) if needed (fee per SOS schedule).
  • Gets the $30 WV Business Registration Certificate.
  • Confirms home occupation rules with Charleston Planning (no retail foot traffic? shipping volume limits?).
  • Collects sales tax based on destination and Charleston rate if shipping to in‑city addresses for taxable items.

Reality checks:

  • Carriers and frequent pickups may draw attention; keep in touch with Planning to avoid violation notices.

Example 3: General Contractor Working City Jobs

  • Holds a valid WV contractor license.
  • Registers with Charleston for city business license and B&O.
  • Pulls building permits per job via Planning and coordinates inspections.
  • Collects/respects WV sales/use tax rules on materials; B&O applies to contracting receipts per city rules.

Reality checks:

  • Not having the right license classification can halt a project. Verify with the Division of Labor before bidding.

What to do if this doesn’t work:

  • Ask KCHD or Planning for pre‑construction reviews to flag issues early.
  • Use WV SBDC and your insurer to review contracts and compliance.

Home‑Based Businesses in Charleston

Action first:

What to know:

  • Typical limits include signage, customer visits, outside employees, storage, and traffic/parking.
  • You still need the WV Business Registration Certificate ($30) and tax accounts if selling taxable goods or hiring.

Common pitfalls:

  • Assuming “online only” means “no city rules.” Zoning still applies.
  • Using garages/outbuildings without permits.

What to do if this doesn’t work:

  • Ask Planning about a conditional use or an alternative location if your home isn’t eligible.
  • Consider a coworking or small commercial suite with proper zoning.

City and State Taxes: Filing Rhythm and Reminders

Action first:

  • Set up your tax accounts to file on time:
  • Sales tax (state + city): through WV Tax e‑file systems. Due dates often the 20th for monthly filers. Source: WV Tax – Sales & Use (official; accessed Aug. 2025).
  • City B&O: file and pay on your assigned schedule per Charleston Finance page: Charleston Finance – B&O Forms & Due Dates (official; accessed Aug. 2025).
  • Annual Report: $25 due by July 1 each year. Source: WV SOS – Annual Reports (official; accessed Aug. 2025).

Tips:

  • Put due dates on your calendar with reminders (at least 7 days early).
  • Reconcile POS reports to sales tax returns monthly.

What to do if this doesn’t work:

  • If you miss a deadline, file and pay as soon as possible to limit penalties and interest.
  • Call the agency via the linked pages to discuss payment plans if needed.

Property Tax on Business Assets (Kanawha County)

Action first:

What to know:

  • Due dates, classifications, and assessment rules are posted by the Assessor. Penalties can apply if you don’t file.

What to do if this doesn’t work:

  • Contact the Assessor through the site above for filing help, or ask WV SBDC for guidance.

Common Mistakes to Avoid

  • Skipping city registration, assuming state registration covers it. It doesn’t.
  • Signing a commercial lease before verifying zoning and occupancy.
  • Forgetting the municipal 1% sales tax, leading to undercollection and back tax.
  • Not setting up the Charleston City Service Fee withholding for employees working in the city.
  • Missing the WV SOS Annual Report (due by July 1), which can lead to administrative dissolution.
  • Beginning a buildout without city permits, then failing inspections.
  • Food businesses starting construction before a health plan review.
  • Contractors bidding without the right state classification/license.
  • Not reporting new hires or failing to secure workers’ comp before first payroll.
  • Treating B&O tax like sales tax (they are different; you may owe both).

What to do if this doesn’t work:

  • Ask agencies for a compliance check or account review; many will help you get current.
  • Consider hiring a local accountant who knows Charleston B&O and WV sales tax rules.

Inclusivity, Diversity, and Accessibility Resources (Charleston/WV)

Action first:

Tips:

  • Certifications open doors to government contracts and corporate supplier programs. Start certification in parallel with your license steps.
  • If a state certification isn’t offered (e.g., women/minority at the state level), federal and national certifications plus WV DBE cover many opportunities.

What to do if this doesn’t work:

Frequently Asked Questions (WV/Charleston‑Specific)

  • Do I need a “general business license” in West Virginia?
    No statewide general license. You do need the WV Business Registration Certificate ($30) and city licensing in Charleston. Sources: WV Tax – Business Registration and Charleston Finance (official; accessed Aug. 2025).
  • What’s the total sales tax rate inside Charleston?
    Combined 7% (state 6% + city 1%). Source: WV Municipal Sales & Use Tax – Rates (official; accessed Aug. 2025).
  • When is the WV SOS annual report due?
    By July 1 each year for most entities; fee generally $25. Source: WV SOS – Annual Reports (official; accessed Aug. 2025).
  • Is the WV Business Registration Certificate annual?
    The fee is $30 one‑time; certificates generally remain valid unless revoked or canceled. Source: W. Va. Code §11‑12‑3 and WV Tax (official; accessed Aug. 2025).
  • Does Charleston have B&O tax?
    Yes. B&O applies to gross receipts by business classification. Rates and forms: Charleston Finance – B&O (official; accessed Aug. 2025).
  • Do I need a health permit for a coffee shop?
    Yes, food service typically requires KCHD permits and inspections. Start with plan review. Source: KCHD – Environmental Health (official; accessed Aug. 2025).
  • How do I withhold and remit Charleston’s City Service Fee for employees?
    Register with the City via the Finance page and follow the current withholding/remittance rules. The commonly cited fee is $3/week per employee; verify the current rate and forms at: Charleston Finance – City Service Fee (official; accessed Aug. 2025).
  • When are WV sales tax returns due?
    Due dates depend on filing frequency. Monthly filers typically file by the 20th of the following month. Source: WV Tax – Sales & Use (official; accessed Aug. 2025).
  • Do I need a contractor license to do renovations in Charleston?
    If you contract with the public for construction, you likely need a WV contractor license. Source: WV Division of Labor – Contractor Licensing (official; accessed Aug. 2025).
  • Where can I get free, local help setting this up?
    WV SBDC offers free advising: WV SBDC – Locations & Advising (official; accessed Aug. 2025). The City Finance and Planning pages provide direct contacts for local requirements: Charleston Departments (official; accessed Aug. 2025).

What to do if this doesn’t work:

  • If answers differ between agencies, ask for written guidance or a citation. Keep records to protect yourself in audits.

Reality Checks, Tips, and Warnings

  • Charleston has both B&O and municipal sales tax. Budget for both or your margins will be off.
  • Lease clauses often put code compliance on you. Negotiate for landlord contributions if the space needs upgrades.
  • Health plan review can change your equipment list (e.g., hand sinks, mop sinks, floor drains). Don’t buy expensive equipment before approvals.
  • Payroll mistakes (new hire reporting, workers’ comp, UI) cause fast penalties. Use a payroll provider if you’re new to WV.
  • Keep good gross receipts records by classification for B&O. Guessing at year‑end is risky.
  • If you sell online into WV, sales tax rules still apply; the state administers collection, including Charleston’s 1%.

What to do if this doesn’t work:

  • Ask for a pre‑opening compliance review with city and health departments.
  • Book a 60‑minute planning session with WV SBDC to map your filings and calendar.

What to File and When (Checklist You Can Save)

  • Before Opening:
    • SOS formation ($100 typical LLC) and EIN ($0).
    • WV Business Registration Certificate ($30).
    • Charleston city license/B&O setup; City Service Fee if you have employees.
    • Zoning/occupancy, building permits, and health permits (if applicable).
  • After Opening:
    • Sales tax returns (state + city) per assigned schedule (often monthly by 20th).
    • City B&O returns (monthly/quarterly as assigned).
    • Payroll: Withholding, UI, workers’ comp, new hire reports.
    • Annual SOS report ($25) due by July 1.

What to do if this doesn’t work:

  • If you fall behind, file the oldest period first, then work forward. Contact agencies via the links above for payment options.

Sources You’ll Use Most (Click to Verify)

About This Guide

  • Purpose: Give Charleston business owners a single, practical hub to get licensed and compliant fast, with direct official links.
  • Scope: Focused on Charleston city rules layered on West Virginia state requirements, with sector call‑outs for common local industries.
  • Sourcing: Only official state/city/federal sources and well‑established programs are used and linked. Every dollar figure and rule is tied to a public source where possible.
  • Currency: Verified against official pages as of August 2025. Fees, rates, and rules do change—see Disclaimer.

Disclaimer

This guide is for general information only. Laws, fees, forms, and agency policies change. Always verify details, deadlines, and dollar amounts directly with the relevant agency using the official links in this guide. If your situation is complex, consult a qualified attorney or tax professional.