Morgantown WV Business License: $20 License, $3 Service Fee Including the Self-Employed and 2020 City Sales Tax

If you plan to sell, serve, or provide services inside Morgantown city limits, you will deal with three separate obligations: a $20 municipal business license, a $3 municipal service fee for each calendar week that also applies to self-employed owners and 1099 contractors, and a 1% city sales tax that sits on top of the 6% state sales tax. West Virginia has no general statewide business license, so this guide walks through the state filings you complete first and the city paperwork that follows.

Informational only. This article is general information, not legal or tax advice. Fees, thresholds and procedures change, and the City of Morgantown, the West Virginia Secretary of State and the WV Tax Division set the requirements that apply to your situation. For complex situations, consult a qualified attorney or CPA before you file.

What You Need Before You Start

• Your legal name, proposed business name, and the address where you will operate
• Your entity type: sole proprietorship, general partnership, LLC or corporation
• A federal EIN if you already have one
• Whether the location is new to the city, since a new physical location needs a Certificate of Occupancy
• A rough estimate of your gross receipts for the year, which you will need when you ask the city about B&O tax
• Proof that you owe no unpaid taxes, fees or fines to the city
• A payment method for the state filing fees and the $20 city license fee
• If you will sell alcohol, the state ABCA license application, and if you will sell unpackaged food from a stand, cart or door to door, a Monongalia County health permit

Step 1: Form Your Entity or Register Your Business Name

If you form an LLC, file Articles of Organization (Form LLD-1) with the West Virginia Secretary of State. The filing fee is $100. Standard processing takes 5 to 10 business days, and expedited options cost extra. The name must include the words limited liability company or an abbreviation such as LLC, L.L.C., LC or L.C., and it must be distinguishable from every other name registered or reserved with the Secretary of State. You can search names at the Secretary of State business search.

If you operate under a name other than your own, you file a trade name registration (DBA). Individuals, sole proprietorships and general partnerships file Form TN-1 with no filing fee. Corporations, LLCs and other registered entities file Form NR-3 for $25.00, plus a $1.00 processing fee if you file through the One Stop Business Portal. DBAs are filed with the Secretary of State, not with a county clerk. Details are on the Secretary of State business page.

West Virginia does not require a commercial registered agent. The Secretary of State can accept service of process for an entity that files organizing documents, and the Form LLD-1 asks for an agent only if you have one. Name reservation is available for $15 and holds the name for 120 days, which helps if your city paperwork will take a while.

Step 2: Get Your State Business Registration Certificate

Before you engage in business activity, every individual or business entity must obtain a Business Registration Certificate from the West Virginia Tax Division. The one-time fee is $30.00. You can file Form WV/BUS-APP or apply online at business4.wv.gov. A separate certificate is required for each business location, and the certificate stays in effect until the business name, location or ownership changes. Your Secretary of State filing does not replace this certificate.

The Morgantown city application builds on this step, so you should have the state certificate in hand before you apply to the city.

Step 3: Confirm the Location and the Certificate of Occupancy

If your business is at a new physical location in Morgantown, attach a Certificate of Occupancy from the city's Development Services department to your application. Before you sign a lease or buy a building, ask Development Services whether the planned use is allowed at that address. Fixing a use problem after you have paid for a space is far more expensive than checking first.

Step 4: Clear Any Balances Owed to the City

All taxes, fees and fines owed to the City of Morgantown must be paid before the city will issue the license. This includes balances from a previous business you owned. Check for open balances with the Finance Department at 389 Spruce St. before you submit your application, because an unpaid balance can hold up the whole process.

Step 5: Work Out Your City B&O Tax

Morgantown levies a business and occupation (B&O) tax on gross income. The state B&O tax applies only to utilities, so the tax that most shops, contractors and service providers encounter is the city's. Morgantown does not publish a rate in this guide, so request the B&O rate table from Finance at [email protected] or 304-284-7408 before you estimate your costs.

Ask Finance about HB 2451 (2025) as well. The bill bars a municipal license for a sole proprietor or contractor who earns under $2,500 a year and has no permanent city location. It also bars municipal B&O tax on businesses with under $2,500 in gross income. Ask Finance how the city applies these limits to your situation, and do not assume they cover you until Finance confirms it in writing.

Step 6: Apply Through the Morgantown Access Portal

After you have the state Business Registration Certificate, apply for the city license through the Morgantown Access Portal on the city's website. The municipal business license fee is $20. Nonprofit organizations also pay $20. The city's fiscal year ends June 30, and the license must be renewed by July 1 each year.

If you sell alcohol, the city form also lists a city fee by license class, and you must hold the ABCA license as well. Plan for the city fee and the state fee as two separate payments. Ask Finance about processing times before you need the license, because the city does not publish a timeline in this guide.

Step 7: Set Up the Sales Tax and the Municipal Service Fee

Morgantown has a 1% city sales tax in effect since 2020-07-01, which makes the total sales tax 7% when combined with the 6% state rate. The state collects the tax, so register for a sales tax account through the WV Tax Division business registration page before you make taxable sales. Ask your Finance contact how the city's 1% is reported on your state return.

The city's municipal service fee is $3 per calendar week and has applied since 2016-01-01, under an ordinance passed on 2015-10-20. Employers withhold the fee from employees. Self-employed owners and 1099 contractors owe the fee themselves, so a sole proprietor working alone may owe up to about $156 over a 52-week year. Build that cost into your pricing or your personal budget from the first week.

Step 8: Check for Other Permits and Licenses

Some businesses need more than the city license. Hawker and peddler licenses that involve unpackaged food require a Monongalia County health permit. Alcohol sales require a West Virginia ABCA license plus the city fee by class. Several trades are licensed at the state level, including contractors above $5,000 for residential work or $25,000 for commercial work (Contractor Licensing Board), electricians (State Fire Marshal), plumbers and HVAC technicians (Division of Labor), and cottage food, hemp, kratom and pesticide activity (WVDA). Confirm the current fees and requirements directly with the agency that governs your trade.

Costs at a Glance

Item	Cost	Paid to	Notes
LLC Articles of Organization (Form LLD-1)	$100	WV Secretary of State	Expedited processing costs extra
Trade name (DBA), entity filing (Form NR-3)	$25.00	WV Secretary of State	Plus $1.00 if filed online. Individuals pay no fee on Form TN-1
Business Registration Certificate	$30	WV Tax Division	One per location, permanent until changes
Morgantown municipal business license	$20	City of Morgantown	Renew by July 1 each year
Municipal service fee	$3 per calendar week	City of Morgantown	Withheld by employers, owed directly by self-employed owners and 1099 contractors
City B&O tax	Confirm with Finance	City of Morgantown	Rate table is not quoted in this guide
City sales tax	1% (7% total with the state rate)	Collected by the state	In effect since 2020-07-01
Alcohol, city fee	$100 to $1,250	City of Morgantown	Depends on license class, plus the ABCA license
LLC annual report	$25	WV Secretary of State	Filed January 1 to June 30 each year

Tips for a Smoother Application

• Finish the state steps first. The city portal expects the Business Registration Certificate.
• Request the B&O rate table early and keep a copy with your records, so you can estimate the tax before you set prices.
• Put the June 30 fiscal year end and the July 1 renewal date on your calendar, along with the state LLC annual report due June 30.
• Ask Finance in writing how HB 2451 applies to your sales level and location. A written answer is easier to rely on than a phone recollection.
• If you serve the WVU student market from apartments or rented rooms, confirm early whether you have a permanent city location, because that question controls whether a municipal license applies to a sole proprietor earning under $2,500.

Common Mistakes to Avoid

• Treating the Secretary of State filing as your license. Registering an LLC or a DBA is a filing, not a license. You still need the $30 state Business Registration Certificate and the city license.
• Forgetting the $3 weekly fee. Self-employed owners and 1099 contractors owe the service fee even though no employer withholds it.
• Assuming the 1% sales tax is the same as the B&O tax. The sales tax is collected on sales. The B&O tax is levied on gross income, and it has its own rate table.
• Applying with an unpaid city balance. Pay all taxes, fees and fines owed to the city first, or the application will stall.
• Signing a lease before checking the use. Ask Development Services whether the planned use is allowed before you commit to a space.
• Skipping the ABCA license. The city alcohol fee does not replace the state license.

What to Expect

Owners who complete these steps in order typically find the city license itself is the simplest item on the list. The questions that take more time are the B&O estimate, the HB 2451 analysis and the Certificate of Occupancy for a new location. Your timeline may be longer or shorter depending on how quickly you gather documents and how complete your application is, so plan your opening date with some margin.

Once the license is issued, you may still need to keep sales tax, service fee and annual report deadlines on your calendar. Missing those filings is one of the more common ways a new business ends up owing more than it expected.

Where to Confirm the Details

For the city license, B&O rates and processing times, contact the City of Morgantown Finance Department at 389 Spruce St., by email at [email protected], or by phone at 304-284-7408. For state filings, start with the West Virginia Secretary of State and the WV Tax Division. The state's One Stop Business Portal is at business4.wv.gov.

This guide is informational only and is not legal or tax advice. Because the B&O tax, the HB 2451 thresholds and your sales tax reporting all depend on your specific facts, speak with a qualified attorney or CPA before you open.