How to Start a Scrap Metal Business in West Virginia: The Four Registrations

Learning how to start a scrap metal dealer business in West Virginia comes down to four separate registrations. West Virginia has no general statewide business license, and the state does not issue one master permit for scrap. Instead, W. Va. Code 61-3-49(b) requires a scrap metal dealer to hold four things: a current Business Registration Certificate from the Tax Division, registered scales, a notice of recycling activity filed with the Department of Environmental Protection, and a scrap metal dealer registration with the Secretary of State. Each one goes to a different agency, and missing any one of them can stop you from buying.

This article is informational content, not legal or tax advice. Scrap buying carries real exposure around stolen property, environmental rules and local zoning, so talk to a West Virginia attorney and a certified public accountant before you sign a lease, buy equipment or open your doors.

What You Need Before You Start

Gather these items before you file anything. Several of the registrations ask for the same information, so having it in one folder saves time.

• A business name that meets state rules. An LLC name must include 'limited liability company', 'limited company', 'L.L.C.', 'LLC', 'L.C.' or 'LC'. It must also be distinguishable from every name already registered or reserved with the Secretary of State.
• A choice of entity type: sole proprietorship, LLC or corporation.
• The street address of your fixed business location. Every registration is tied to a location.
• A list of every scale you plan to use, with make, model, capacity and serial number.
• Government-issued photo ID and ownership information for each owner.
• A purchase log system, paper or electronic, that captures the fields listed in Step 7.
• A way to copy a seller's photo ID, such as a scanner or a phone app.
• Filing fee budget. The Secretary of State charges $100 for Articles of Organization (Form LLD-1) and $100 for Articles of Incorporation (Form CD-1). The Tax Division Business Registration Certificate is $30. A name reservation is $15 and holds the name for 120 days.

Step 1: Form Your Business Entity and Name It Correctly

Most scrap yards operate as LLCs, and the entity filing is where you start. For an LLC, you file Articles of Organization (Form LLD-1) with the West Virginia Secretary of State for $100. Corporations file Articles of Incorporation (Form CD-1) for the same $100. Standard processing takes 5 to 10 business days. Expedited options cost extra and are added to the filing fee: $25 for in-person same-day or next-business-day service, $250 for two-hour service and $500 for one-hour service. Online filings through the WV One Stop Business Portal add a $1.00 processing fee.

Form SMD-1, the scrap metal dealer registration, is submitted with this entity filing. Plan Step 1 and Step 5 together so you do not file twice. If you operate as a sole proprietor with no entity filing, confirm with the Secretary of State Business and Licensing Division how to submit SMD-1 on its own.

West Virginia does not require a separate commercial registered agent. The Secretary of State is appointed as attorney-in-fact for every entity that files organizing documents, so it can accept service of process for you. You may still name an agent, which can be an individual resident, a corporation or another LLC. If you do, changes are filed on Form AAO for $15.00.

If you will trade under a name other than your legal name, file a Trade Name Registration (DBA) with the Secretary of State, not the county clerk. Individuals and sole proprietors pay no filing fee. LLCs and corporations pay $25.00, plus a $1.00 processing fee if filed through the portal. Use Form NR-3 for entities and Form TN-1 for individuals.

Step 2: Get the Business Registration Certificate From the Tax Division

This is the state's closest equivalent to a business license, and it is the one people most often skip. The Business Registration Certificate is issued by the West Virginia Tax Division. Every individual or business entity must hold one before engaging in business activity, and registering with the Secretary of State does not replace it.

The one-time fee is $30.00. You can apply on Form WV/BUS-APP or online at business4.wv.gov. A separate certificate is required for each business location, and the certificate stays in force until the business name, location or ownership changes. If you open a second yard, you need a second certificate.

The Tax Division will not issue a certificate to a business tied to a person convicted of a third offence in the past two years, under W. Va. Code 11-12-5a. If any owner or manager has that history, raise it with the Tax Division and an attorney before you file.

Step 3: Register Every Scale With the Division of Labor

Every scale you use to weigh purchased material must be registered with the Division of Labor, Weights and Measures. That includes the platform or truck scale you use for bulk loads and any smaller scale you use for sorted or specialty metals. Weight appears on every purchase record, so an unregistered scale puts your records in question.

The Division of Labor sets the registration process and any fee, and those details are not part of this summary. Before you buy or install a scale, contact the Division of Labor and confirm the form, the fee, whether an inspection is needed before the scale is used, and how to register a replacement scale if you change equipment later.

Step 4: File a Notice of Recycling Activity With DEP

A scrap yard handles material that the state regulates as recycling activity, so you must file a notice of recycling activity with the West Virginia Department of Environmental Protection. The notice describes what your yard does with the material it receives. Confirm the form, any fee, timing and whether the notice applies to every material you plan to handle, including catalytic converters and steel railroad track, by contacting DEP directly before you open.

Step 5: Register as a Scrap Metal Dealer With the Secretary of State

Form SMD-1 places your business on the Secretary of State's published list of scrap metal dealers. The list shows your business address, hours and owners, so anyone checking a seller's options or a police inquiry can find you. Expect your name, location and owners to be public once the registration is accepted.

The West Virginia scrap metal definition covers copper, aluminum, brass, lead and other nonferrous metals, along with catalytic converters and steel railroad track. If you plan to buy any of these, your registration should cover them. The Secretary of State fee schedule does not list a scrap-specific fee for SMD-1, so ask the Business and Licensing Division what, if anything, it charges. Do not assume the fee is zero.

Step 6: Handle City Licensing and Taxes

Because West Virginia has no statewide business license, most of your local obligations come from the city where your yard sits. West Virginia has 55 counties and 230 incorporated places, and a yard inside a city limit faces the city's rules. Check the city first, then the county for unincorporated locations.

Expect three city-level charges to apply to a retail or service business such as a scrap yard. The first is a city business license. The second is a city gross-receipts business and occupation tax, often called B&O tax. West Virginia's state B&O tax applies only to utilities, so the B&O tax that reaches a scrap yard is a city tax, and the rate varies by city. The third is a weekly per-worker city service fee. Confirm each with the city clerk or finance office before you open.

On sales tax, the state rate is 6%, and 101 municipalities add a 1% city sales tax today. That number rises to 107 on January 1, 2027. Confirm with the Tax Division which of your sales, if any, are taxable. Buying scrap is generally a purchase, but selling processed metal, equipment or other goods may create a sales tax obligation.

Zoning and land use are separate from every registration above. Scrap yards are often restricted to specific districts, and some cities require a permit before operating. Ask the city or county planning office before you sign a lease.

For income tax, an LLC does not pay a state franchise tax. As a pass-through entity, it generally does not pay corporation net income tax, and members report income on the personal income tax, which runs from 2.11% to 4.58% for tax year 2026. A corporation pays a 6.5% corporation net income tax on federal taxable income. Which structure fits your situation is a question for your CPA.

Step 7: Set Up Purchase Records Before Your First Buy

Record-keeping is where scrap dealers get into the most trouble. Before your first purchase, set up a log that captures each of the following for every transaction:

• The seller's name, address and phone number
• The vehicle plate number of the seller's vehicle
• The time and date of the purchase
• The kind of metal and its weight, from a registered scale
• Whether the material was bought, taken as collateral or consigned
• A signed certificate of ownership from the seller
• A copy of the seller's photo ID

Keep these records for three years, or file them with the State Police and your local police within 72 hours of the transaction. Choose one approach and apply it to every purchase. A missing plate number or unsigned certificate is the gap an investigator will look for first.

Expected Results

Once all four registrations are in place and your city items are cleared, you should be able to open and buy material legally. A Secretary of State LLC filing typically completes in 5 to 10 business days on standard processing, and the other agencies publish their own timelines, which you should confirm before you commit to an opening date. Results will vary with your location, your material mix and how quickly each agency responds. This guide does not promise approval, timing or revenue, and it should not be read as a guarantee of any result.

Common Mistakes to Avoid

• Treating the LLC filing as the license. Registering with the Secretary of State is a filing, not a license. You still need the Tax Division certificate, scale registration, the DEP notice and the city items.
• Skipping the $30 certificate or assuming one covers every site. Each fixed location needs its own certificate.
• Using an unregistered scale. Weights in your records must come from equipment the Division of Labor has registered.
• Leaving out catalytic converters or railroad track. Both are covered scrap, so plan your registrations and records around them.
• Assuming there is no B&O tax because the state has none for most businesses. Your city may charge one.
• Filing a DBA with the county clerk. DBAs are filed with the Secretary of State.
• Missing the annual report. An LLC annual report is due each year between January 1 and June 30, with a $25 fee. A filing after June 30 costs $75 because of a $50 late fee.
• Following Virginia rules. West Virginia is not Virginia. If an online guide cites Virginia agencies, laws or cities, ignore it.

Practical Tips

• Call the Division of Labor, DEP and the city before you buy equipment or sign a lease. Their answers may change the scale you buy and the site you choose.
• Build the purchase log before opening day, then test it with a mock transaction to confirm every required field is captured.
• Schedule the June 30 annual report on your calendar the day you form the entity.
• Keep copies of every filing, receipt and agency confirmation in one file. Records are easier to produce when a question comes up.
• Use the West Virginia Small Business Development Center at wvsbdc.com for free or low-cost advising on starting a business.

Where to File and Check Status

• West Virginia Secretary of State: sos.wv.gov/business
• Business search: apps.sos.wv.gov/business/corporations/
• WV One Stop Business Portal: business4.wv.gov
• West Virginia Tax Division: tax.wv.gov
• Sales tax permit information: tax.wv.gov/Business/BusinessRegistration/Pages/BusinessRegistration.aspx

For the Division of Labor, DEP and your city, confirm current contact details and forms with each office directly before filing. This article is informational content, not legal or tax advice. Consult a qualified West Virginia attorney and CPA for your specific situation.