As I mentioned in a post last week, I decided to start a business. I opted for a sole proprietorship because it's easy, quick and cheap to start, or so I've been told. That would hold true for 4 of the 5 states I am licensed in, but not in West Virginia.
First off, I had to get a Certificate of Authorization. That isn't required in any other state I am licensed in. I do as I'm told and send in the check and application. A couple of days go by and I receive my COA application back with instructions to fill out a section I had marked "N/A". That section reads:
"I certify that (firm), under penalty of the law, is fully registered with the West Virginia State Tax Department, the West Virginia Secretary of State (if applicable), and has obtained the required Workers' Compensation or Exemption Certificate to conduct business activities in the State of West Virginia."
During the course of my research before starting out in this, I discovered that I didn't have to register with the Secretary of State. Good. I learn after I received my COA app back that I do have to register with the state tax department. To do that, I have to get a FEIN. I then have to use that FEIN to register with said tax department and pay another tax/fee.
IMHO, all this hassle and these fees defeat the purpose of starting a sole proprietorship.
Rant off. Y'all have a blessed day. 🙂
I could have helped you with that. I went thru the same ordeal 5 years ago (for my SP) and 6 months ago for the company I work for now. I forgot about the tax department both times as well. This time I needed a Certificate of Existence, which I don't think many states have ever heard of.
David,
Welcome to the world of business ownership!
It is always something!
Jimmy
Look on the bright side of it.
That requirement makes you get an EIN. You now can use that number instead of your personal SS number when filling out a form W9 when clients request one. Thereby keeping your SS number from being in as many open areas.
Dave, If you're really going to be in business, then you'll want that FEIN number but that Worker's Comp exemption is gonna cost ya $25 every year. And you'll need to send in a copy with the COA renewal.
Yeah I just discovered that too. It's no wonder businesses don't want to relocate to West Virginia. They nickel and dime you to death.
God help some little kids try to open a lemonade stand.
Business licenses and all necessary certs first.
Since they are "preparing food" they'd have to get a restaurant license.
Since they are now a restaurant, they have to go through food prep training and licensure.
Since their "restaurant" is now open the local health dept. has to come to inspect and grade them.
Now, whoever is actually handing over the cup of lemonade is a "server", that server will need a "server's license" depending on the county laws - which they would here in Cobb county GA.
I've also heard yesterday on the radio that some Church's are being advised to shut down their food supply activities for the needy because of all that. Among their advisements - no dented cans. My neighbors get stuff from one of those Church's all the time and they always get dented cans. They have recently brought them some frozen meats - all with expired "sell by" dates on them.
As you have painfully discovered, it goes on and on....
Best of luck to you however.
Try living in...
Connecticut! Gotta love fees/taxes!!:-@