Starting A Sole Proprietorship or General Partnership

 

Steps to Start a Sole Proprietorship or General Partnership

Click on the number if you need more information about that step before you complete your new company's registration. 

	Before Filing:  Lay the groundwork for your new business to avoid future problems.
	Filing with the State Tax Department: Get your business franchise certificate before you begin doing business.
	Partnerships:  Optional Filing with the Secretary of State:  If your partnership will own property, you may want to file with the Secretary of State.
	Partnerships:  Optional Filing in the County:  If your partnership will own property in one or more counties in West Virginia, filing a certified copy of the statement of registration with the Secretary of State may affect rights in a real estate transaction.
	Next Steps:  Complete other state, county and municipal filing requirements before you start business.

 

1	Before Filing
	The first filing for a sole proprietorship or general partnership is the business franchise application with the Tax Department.  However, it's a good idea before you start to take a few steps to help avoid later problems. Even though a sole proprietorship or general partnership is not subject to the name availability rules of corporations and other business types, you want a name that can't be confused with other businesses.  Check the Business Organizations Database for the name you plan to use, and make sure its not in use or trademarked. If you are starting a general partnership, it is a good idea to have a written partnership agreement, which will help make your business relationship clear and prevent misunderstandings.
2	Filing with the State Tax Department
	Complete the Business Registration Application for filing with the Department of Tax and Revenue.  This form is a combined form which will allow you to obtain your business franchise certificate and complete initial registration to comply with unemployment and worker's compensation requirements.  As owners or partners, you will have to decide whether to "elect out" of worker's compensation coverage. If you plan to use any trade names, you must also register those with the State Tax Department before doing business under another name.
3	Partnerships: Optional Filing with Secretary of State
	A general partnership is not required to file with the Secretary of State.  However, the law provides the option of filing.  Certain provisions of law affecting rights in real estate transactions (see WV Code §47B-1-5 and §47B-3-3) are effective only if the statement of partnership is filed with the Secretary of State.  The filing is effective for five years, then is cancelled by operation of law. The filing should be titled "Statement of Registration" and must contain the information required by WV Code §47B-3-3. The statement must be signed by at least two partners. The fee for filing is $50. If the partnership intends to file in a county where real estate is owned, a certified copy of the statement of partnership may be ordered at the time of filing for an additional $10. See Ordering & Payment for more information about filing.
4	Partnerships:  Optional Filing in the County
	A partnership that files with the Secretary of State may file a certified copy of the statement of registration  in any county where real property is owned by the partnership.  This statement would have the effect on real property transfers set out in law.  Although the partnership could file a statement of registration with the county which is not certified, that statement would not have the same effect. See West Virginia Code §47B-1-5 and  WV Code §47B-3-3, especially subsection (d) for the specific provisions.
5	Next Steps
	As with other organizations, there are a few more steps before you start operation.   Determine whether any other state licenses are required for the type of activity you do.    Some of the most common licenses and permit requirements are listed for your convenience with links or contact information for the agencies which issue those licenses or permit.  Go to:  Professional & Occupational Licenses or Other Licenses and Permits.  You may need to make inquiries to find other licenses. Licenses or registrations to do business may be required at the county or city level, especially in counties where your association provides services to the community or solicits door-to-door.  Contact the County Commission for county requirements, and the City Clerk for municipal requirements.