Franchise Tax in West Virginia

April 13, 2006

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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.

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