How To Start a Nonprofit in West Virginia in Nine Steps

Your nonprofit’s name should reflect your charitable mission, so that people (and potential donors) understand your purpose. The name must be unique and not too similar to other business entities in West Virginia. To check name availability in the state, go to the West Virginia Secretary of State’s website and enter the name in the Business Organization Search tool.

You will also want to see if you can use your name on the internet for your website. To see if the name is already in use as a domain name, search the name on the internet or the ICANN Domain Names Registration website.

Finally, check if the name is protected under a registered trademark at the United States Patent and Trademark Office (USPTO) website.

If the name is not already in use or a registered domain name or trademark, you can use it.

A board of directors is a group of individuals who serve to govern your corporation. They review financial statements, oversee your operations, and help with important decisions. In West Virginia, you must have three or more individuals to serve on your board. Your board members have a fiduciary duty to act in the best interests of the nonprofit. They cannot make decisions that further their personal interests.

When choosing members for your board, look for people who share your passion for your cause and who can help with networking or fundraising. If you have a nonprofit afterschool program, for example, you may ask educators for their input into developing a program.

To form a nonprofit corporation in West Virginia, you must file articles of incorporation with information about your organization. In West Virginia, you must include the following in your articles:

• Name of West Virginia corporation

• Address of principal office

• Name and address of the registered agent

• Email and website address

• Whether you own one or more West Virginia businesses

• Whether the corporation is a stock or non-stock corporation

• The corporation’s purpose

• If the business is a metal scrap dealer

• If the nonprofit will or will not have members

• Name and address of incorporator

Additionally, nonprofit corporations must include specific language by the IRS in their articles of incorporation.

To file the articles of incorporation, you can set up an account with the WV One Stop Business Portal and file online. Or you can complete Form CD-1NP online, print it, and submit it to the West Virginia Secretary of State. The filing fee for a nonprofit corporation is $25.00. However, if the nonprofit will be a veteran-owned organization, the fee is waived.

Or you can let our trusted partner LegalZoom handle your nonprofit creation starting at $99 plus filing fees.

Tax-exempt organizations must have bylaws and a conflict-of-interest policy. Bylaws are the rulebook for your corporation, governing how it's run, electing officers, holding meetings, making decisions, etc. A conflict-of-interest policy requires board members and officers to avoid self-dealing and operate in the best interests of the organization.

An EIN for a corporation is similar to a social security number for an individual. Your nonprofit needs an EIN to file tax forms and open bank accounts in the nonprofit's name. To get an EIN from the Internal Revenue Service (IRS), you complete IRS Form SS-4 or apply online on the IRS website. If applying online, you should get an EIN immediately.

Once you have your certificate of incorporation and EIN, you can apply for federal tax-exempt status with the IRS. The form you file depends on your nonprofit classification as defined under the Internal Revenue Code.

• 501(c)(3) charitable, religious, and educational nonprofit organizations file Form 1023 or Form 1023-EZ. File Form 1023-EZ if your annual gross receipts won’t exceed $50,000. You must use the Pay.gov site when filing Form 1023-EZ.

• 501(c)(4) social welfare organizations file Form 1024-A.

• Other tax-exempt or nonprofit organizations, such as 501(a), file Form 1024.

You will then receive an IRS determination letter advising you if your organization is approved as a tax-exempt corporation.

All businesses and individuals must get a Business Registration Certificate from the State Tax Department before engaging in any business activity. You can register using the WV One Stop Business Portal or by filing a West Virginia New Business Registration Application (WV BUS-APP) with the State Tax Department.

Nonprofits do not need a business license in West Virginia. However, check with your town or county clerk’s office to see if you need a local business license or permit.

If you have federal tax-exempt status, you do not have to pay a state income tax. However, you may need to pay a sales and use tax for sales. See if your nonprofit is eligible for sales tax exemption with West Virginia by contacting the West Virginia State Tax Department. You must have already registered with the State Tax Department (Step 7).

If your nonprofit intends to solicit donations, you must complete a Registration Statement of Charitable Organization (Form CHR-1) with the West Virginia Secretary of State's Office. The state fee is based on the amount you raise. If the amount raised is less than $1 million, the fee is $15. If the amount raised is more than $1 million, the fee is $50. Submit the registration form with the applicable filing fee to the West Virginia Secretary of State Charities Division, WV One Stop Business Center, 13 Kanawha Boulevard West, Suite 201, Charleston, WV 25302. You must also complete an annual report.