Fact Checked by Editorial Staff
Establishing a nonprofit is kind of similar to forming a corporation in West Virginia. You can easily start a nonprofit in West Virginia as a limited liability company, a corporation, or any other type of business structure. Unlike for-profit businesses, nonprofits focus on addressing pressing social issues than profit-oriented businesses.
This article will guide you through the Dos and Don’ts of starting a nonprofit in West Virginia. LLCBuddy editors explain all the steps you must follow to form a corporation for your nonprofit organization. It must be noted that this page shared generalized steps to form a nonprofit in West Virginia. It is recommended to consult an attorney or hire a professional service.
What is a Nonprofit in West Virginia
Nonprofit organizations are legal entities that operate to serve public benefits and address community issues. Unlike for-profit organizations, nonprofits do not aim to generate any profit. The Internal Revenue Service (IRS) generally exempts nonprofit organizations from tax. However, based on the business entity structure, you will receive tax exemptions as a nonprofit.
In West Virginia, ensure you have a community issue to address before forming your nonprofit. It can generally be education, religion, charity, social service, or other social issues. Nonprofits do not pay taxes on the money they receive through fundraising programs, donations, or any charitable funding.
Types of Nonprofits in West Virginia
The first thing one has to decide is what type of nonprofit structure one wants. There are several types of nonprofits one can start. Here is a list of nonprofit types one can choose from-
- Nonprofit LLC
- Nonprofit Corporation
- Unincorporated Nonprofit
BOI Report Filing
According to the Corporate Transparency Act, every LLC, corporation, and other type of business that is registered with the West Virginia SOS or similar authority, must file the BOI report with FinCEN. From January 1, 2024, it is mandatory to file a BOI report for every business entity. In this report, LLCs have to share information about the beneficial owners (having equal or more than 25% share). LLC owners can file BOI reports online or offline.
Businesses in West Virginia that are created before January 1, 2024, should file their BOI report by January 1, 2025. Businesses that are created in 2024, must file the BOI report within 90 business days of finishing the formation process. Missing out on filing the BOI report may lead to a monetary penalty of $500/day.
How to Start a Nonprofit in West Virginia
Nonprofits are certainly different from for-profit organizations. The main focus of the organization is on social values rather than profit. The process of having a nonprofit in West Virginia is similar to forming any corporation in West Virginia. However, there are a few additional steps to follow.
Step 1: Develop Your Mission and Vision
Before you get into legal details, you need to define the purpose and goal of your organization clearly; this will go a long way in guiding your decisions as well as making it easy for you to explain your mission statement.
- Pick out what specific cause or issue you want to address;
- Define who you will target or help reach particular goals;
- List down both what people should do within a short period and what they should achieve in the long term perspective;
- Write a captivating mission statement.
Step 2: Name Your Nonprofit in West Virginia
Naming a business in West Virginia has a handful of regulations. If you start a corporation or an LLC in West Virginia, you must follow those regulations to name your nonprofit. The most important rule is to check if the name is available in West Virginia to use.
If you’re forming an LLC in West Virginia for your nonprofit organization, check out LLC naming guidelines in West Virginia. For the corporation regulations, read on how to start a corporation in West Virginia. As soon as the name is decided, you can reserve it with the West Virginia Secretary of State. You can also file DBA in West Virginia before you establish your nonprofit organization. DBA can be filed in two methods, by mail and in person.. The DBA filing fee in West Virginia is $25.
- Online DBA Filing: There is no online filing available
- Offline DBA Filing: For filing offline in West Virginia, you must send the accomplished DBA filing form to the West Virginia Secretary of State, Business and Licensing Division, One-Stop Business Center, 1615 East Washington Street, Charleston, WV 25311-2126 or drop it off in person at the same address.
- DBA Renew Time in West Virginia: Indefinite
Step 3: Appoint Initial Board Members
If you’re forming a corporation for your West Virginia nonprofit, it is required to appoint the initial board members. In West Virginia, you need at least Three unrelated directors to start the organization. If you don’t choose a minimum of Three directors, it will automatically become a member-managed corporation.
Step 4: Get West Virginia Registered Agent
This is a very important step for any business in West Virginia. The Registered Agent in West Virginia is a person who conducts all types of documentation between the State and your nonprofit organization. The Registered Agent must be from West Virginia, above 18 years of age, and must have legal rights to conduct business in the state. Several professional and business formation services offer registered agent services in all the states in the USA. It is better to hire a professional rather than being your own Registered Agent in West Virginia.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $99 Per Year |
| |
 | $125 Per Year |
|
Step 5: File Articles of Incorporation with West Virginia SOS
This is the most important step in forming a nonprofit corporation in West Virginia. File your Articles of Incorporation with the West Virginia Secretary of State. You can file your nonprofit corporation through two methods, online and by mail. Submit the details of your nonprofit corporation, like the name of the nonprofit, address, name and address of the registered agent, operation dates, directors’ details, and more information related to your company.
- Online Incorporation: Create an account/Log in to the SOS site, get the e-form, fill it, and submit online. Or get the online PDF, fill it up and upload it back on the site.
- Offline Incorporation: Send the form by mail to Eastern Panhandle Business Center, 229 E. Martin St., Martinsburg, WV 25401
- Incorporation Fee in West Virginia: $25 for online and by mail filing
Hiring a professional service might be a wise idea here. Having a corporation is much more complex than forming an LLC. We recommend ZenBusiness as they are one of the top business service providers currently. They offer LLC formation at $0 in West Virginia.
Step 5.1: Write Company Bylaws
As soon as you file the formation documents, it is time for the company bylaws. The directors and board members must decide how the meetings, elections, voting, and other corporate activities will be held. These bylaws must comply with the West Virginia state law. It is similar to an LLC operating agreement in West Virginia for the LLC owners.
Step 6: Get an EIN in West Virginia
The next step is to obtain the EIN in West Virginia. The employer identification number (EIN) is required to conduct business in West Virginia. You will need to acquire the West Virginia EIN from the official IRS website. To obtain the EIN, submit your application to the IRS office either by mail or through their online platform. There is no associated cost for this process.
Step 7: Tax Exemptions for Your Nonprofit
When you start a nonprofit in West Virginia, you enjoy tax exemptions. As the nonprofits are not profit-oriented, they get a huge tax exemption from Federal and State authorities.
Federal Tax Exemption
You must submit Form 1023 to the IRS to file for federal tax exemption. This form, titled “Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code,” is required for all nonprofit corporations. Smaller nonprofits have the option to file Form 1023-EZ instead. You will be prompted to provide details about your organization upon obtaining the relevant form. Complete the form with the necessary information and submit it. The filing fees are $600 for Form 1023 and $275 for Form 1023-EZ.
State Tax Exemption
Once you get the Federal Tax Exempt, it is time for State Tax Exempt. In West Virginia, you must apply for the tax exemption to the West Virginia State Tax Department. Get the form, fill it up with the correct details, and send it to the office. You may need to pay a fee along with the form and supportive documents to apply for the State Tax Exemption. You need an Exemption Certificate to apply for the state tax exemption. Read West Virginia classification of taxes to learn more about the West Virginia tax structure.
Can I form an LLC for my Nonprofit in West Virginia?
Yes, you can form an LLC in West Virginia to run a nonprofit. Establishing an LLC nonprofit in West Virginia requires similar documents and paperwork. Except for tax exemption applications that one must file with the state tax and revenue department. LLCs must file Form 1023 with the West Virginia State Tax Department to get the tax exemption.
After You Form a Nonprofit Corporation in West Virginia
Once your nonprofit is formed, there are additional steps to complete:
- Get necessary licenses: As soon as your corporation or an LLC for your Nonprofit in West Virginia will be established, get necessary licenses and permits. Check with the local authority/government to get the local permits.
- Get Insurance for the West Virginia Nonprofit: You must get workers’ compensation and unemployment insurance if you have employees. Based on your nonprofit structure, you might need general liability insurance, property, vehicle, auto insurance, etc.
- Get a Business Bank Account: You must get a business account for all types of business-related transactions in West Virginia. You may need different documents based on the bank and place of business. Check with the bank for it.
- File Nonprofit as Charity: This is optional. Your nonprofit is either for charity purposes or any purpose that meets your community’s needs. If your organization is for charity purposes, then you can file your nonprofit as a charity to enjoy tax exemptions.
- Other Business Compliances: You may need additional compliances based on your nonprofit type. Check with your attorney or local authority for more information.
- Evaluating And Improving Performance: To evaluate the performance of your non-profit organization, it is necessary to; establish performance metrics also tied to the mission; and implement continuous improvement strategies.
- Staying Current With Nonprofit Trends And Best Practices: To stay up-to-date on trends and best practices in the non-profit world you should join nonprofit associations plus networks.
Common Challenges And How To Address Them
- Funding Sustainability
For funding sustainability issues you need to focus on diversifying funding sources and developing strong relationships with donors. Also, implementing efficient financial management, exploring earned income opportunities for sustainability, and such should be on focus.
- Volunteer Management
The challenges faced in volunteer management can be resolved by creating clear roles plus expectations for volunteers, and providing adequate training also support. Recognize and appreciate volunteer contributions while implementing volunteer retention strategies such as offering regular appreciation events or awards. Provide trainers’ placement services too.
- Mission Drift
This problem can be solved by several mechanisms such as regular review and reaffirmation of your organizational mission–this will ensure that all activities are aligned with the core purpose. Educate board members and staff about the importance of the mission and make them understand how this works out in practice. Implement a strategic planning process and explain to the board why it is important for their organizations to have a well-defined mission.
- Regulatory Compliance
To remain compliant with the law, you need to: keep track of changing laws and regulations all the time; conduct regular compliance audits; seek professional advice when in doubt; and implement comprehensive record-keeping systems.
Names of Nonprofit Corporations in West Virginia
Following are some of the Nonprofit Organizations in West Virginia. The contact information of these organizations can be found on West Virginia Secretary of State portal.
- Princeton Charities
- Rainelle Charities
- Ranson Charities
- Ravenswood Charities
- Richwood Charities
- Ridgeley Charities
- Ripley Charities
- Romney Charities.
FAQs
Also Read
- Start Non-profit in Alabama
- Start Non-profit in Alaska
- Start Non-profit in Arizona
- Start Non-profit in Arkansas
- Start Non-profit in California
- Start Non-profit in Colorado
- Start Non-profit in Connecticut
- Start Non-profit in Delaware
- Start Non-profit in DC
- Start Non-profit in Florida
- Start Non-profit in Georgia
- Start Non-profit in Hawaii
- Start Non-profit in Idaho
- Start Non-profit in Illinois
- Start Non-profit in Indiana
- Start Non-profit in Iowa
- Start Non-profit in Kansas
- Start Non-profit in Kentucky
- Start Non-profit in Louisiana
- Start Non-profit in Maine
- Start Non-profit in Maryland
- Start Non-profit in Massachusetts
- Start Non-profit in Michigan
- Start Non-profit in Minnesota
- Start Non-profit in Mississippi
- Start Non-profit in Missouri
- Start Non-profit in Montana
- Start Non-profit in Nebraska
- Start Non-profit in Nevada
- Start Non-profit in New Hampshire
- Start Non-profit in New Jersey
- Start Non-profit in New Mexico
- Start Non-profit in New York
- Start Non-profit in North Carolina
- Start Non-profit in North Dakota
- Start Non-profit in Ohio
- Start Non-profit in Oklahoma
- Start Non-profit in Oregon
- Start Non-profit in Pennsylvania
- Start Non-profit in Rhode Island
- Start Non-profit in South Carolina
- Start Non-profit in South Dakota
- Start Non-profit in Tennessee
- Start Non-profit in Texas
- Start Non-profit in Utah
- Start Non-profit in Vermont
- Start Non-profit in Virginia
- Start Non-profit in Washington
- Start Non-profit in West Virginia
- Start Non-profit in Wisconsin
- Start Non-profit in Wyoming
In Conclusion
Starting a Nonprofit corporation in the West Virginia takes careful thought, dedication, and detailing. Follow the steps detailed in this guide while addressing common challenges so that your organization can be built on solid ground and make a long-lasting impact on your cause. Remember also that running a nonprofit organization in West Virginia is a perpetual learning, adapting, and growing process.
As you continue your journey, you may need professional help. Having a professional or experienced person, or attorneys while you run your nonprofit in West Virginia can make the journey much simpler in the long run. Since forming a nonprofit involves tax exemptions, the government takes additional care to verify your background.
Donations, charity, and several community services are the most desirable ways to evade tax. Hence, many people get involved in nonprofit organizations. It is recommended to consult a legal professional, accountants, and service providers like ZenBusiness for the paperwork and formation process. With persistence, passion, and proper management structure everything is possible hence changing positively your community as far as Non-Profit corporations are concerned.