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If your corporation in West Virginia is a domestic corporation (a corporation organized in West Virginia) or a foreign corporation (a corporation organized in a state other than West Virginia), you must pay a Business Franchise Tax and a Corporate License Tax.
The Business Franchise Tax is the greater of $50 or 0.70 percent of the value of your corporation's capital. It applies to C corporations and S corporations.Over the next few years, the state's business franchise tax rate will be reduced as follows:
- for tax years beginning on or after January 1, 2009, the amount of the business franchise tax due will be the greater of $50 or 0.0048 of the value of the determined tax base;
- for tax years beginning on or after January 1, 2010, the amount of the tax due will be the greater of $50 or 0.0041 of the value of the determined tax base;
- for tax years beginning on or after January 1, 2011, the amount of the tax due will be the greater of $50 or 0.0034 of the value of the determined tax base;
- for tax years beginning on or after January 1, 2012, the amount of the tax due will be the greater of $50 or 0.0027 of the value of the determined tax base; and
- for tax years beginning on or after January 1, 2013, the amount of the tax due will be the greater of $50 or 0.0021 of the value of the determined tax base.
Corporate License Tax. Both domestic corporations and foreign corporations that conduct any business activity in West Virginia during the upcoming tax year must also pay a Corporate License Tax. The tax on domestic corporations is based on authorized capital stock. No par stock is valued at $25 per share unless it was issued for a greater amount. If you are a foreign corporation the tax is based on the proportion of outstanding capital stock that is represented by property owned and used in West Virginia. If you are a domestic corporation you compute your tax according to the following table. If you are a foreign corporation the tax is 75 percent greater than the amount shown in the table below, with a minimum tax of $250 and maximum of $4,375 per year.
| Capital Stock | Tax |
| $5,000 or less | $20 |
| $5,000 to $10,000 | $30 |
| $10,000 to $25,000 | $40 |
| $25,000 to $50,000 | $50 |
| $50,000 to $75,000 | $80 |
| $75,000 to $100,000 | $100 |
| $100,000 to $125,000 | $110 |
| $125,000 to $150,000 | $120 |
| $150,000 to $175,000 | $140 |
| $175,000 to $200,000 | $150 |
| $200,000 to $1,000,000 | $180 plus $0.20 per $1,000 or fraction thereof over $200,000 |
| $1,000,000 to $15,000,000 | $340 plus $0.15 per $1,000 or fraction thereof over $1,000,000 |
| $15,000,000 and over | $2,500 |
Every domestic and foreign corporation must also pay a $25 fee every year for the West Virginia Secretary of State to act as attorney-in-fact.
