How to Start a Vacation Rental Business in West Virginia: BRC, Taxes and Local Zoning

Renting a house, cabin or condo to vacationers in West Virginia is a real business with real paperwork. The state's core requirements are short: an entity filing if you want one, a $30 Business Registration Certificate (BRC) from the State Tax Division, and sales tax collection on every paid night. The part new hosts most often miss is local. There is no statewide short-term rental license, but cities and counties set zoning and can regulate short-term rentals, and some add their own lodging and business taxes on top of the state tax. This guide covers the order to do things in and the figures we could verify.

This article is informational content, not legal or tax advice. Local rules vary by city and county and change over time. Talk with a qualified attorney and a CPA before you buy property for rental use or sign a lease.

What You Will Need Before You Start

• A property you can legally rent for short stays, with the deed or lease and the exact street address
• Your zoning district, which you will get from the city or county planning office
• A federal employer identification number (EIN) from the IRS, which is free to obtain
• A name for your business and a backup name in case the first one is taken
• An account on the West Virginia One Stop Business Portal at business4.wv.gov
• Funds for the filings: $100 for an LLC, $30 for the BRC, and $25 for the annual report due later
• A separate bank account for rental income and tax collected
• A spreadsheet or bookkeeping tool that records each stay: check-in and check-out dates, nightly rate, fees and tax collected
• A quote from an insurance agent for short-term rental coverage
• A calendar reminder for June 30 each year

Step 1: Check Zoning and Local Rules Before You Buy or Sign

This is the step that costs the most when skipped. West Virginia has 55 counties and 230 incorporated places (towns, cities and villages), and each one can set its own rules. State law allows municipalities to regulate short-term rentals, so a property that works in one town may be barred from short-term rental in the town next door.

Call the city planning or zoning office if the property is inside city limits. If it is outside city limits, call the county planning or zoning office, and if the county has no zoning office, ask the county commission. Ask these questions and get the answers in writing:

• Is short-term rental of a whole house permitted in this zone?
• Is a permit, registration or inspection required before the first guest?
• Are there limits on the number of nights, the number of guests, or the number of rentals in the area?
• Does the city or county require an owner to live on the property?
• Are there parking, noise or trash rules that apply to rentals?

Also ask whether a homeowners association or condo association restricts short-term rentals. Those rules are private, but they bind you as an owner and they can be stricter than the local government's rules.

Common mistake: buying a cabin because a listing site already shows it as a rental. Listing sites do not confirm that the property is legal to rent for short stays.

Step 2: Choose Your Legal Structure

You can operate as a sole proprietor with no entity filing, but a sole proprietorship does not separate your personal assets from claims arising from the rental. Most hosts who own their rentals in their own name, or who plan to buy more than one property, choose a limited liability company (LLC). An LLC generally keeps business debts and most business claims apart from your personal assets, though it does not replace insurance and it does not protect you from your own negligence.

To form an LLC, file Articles of Organization (Form LLD-1) with the Secretary of State through the One Stop Business Portal or by mail. The key facts:

• Filing fee: $100.
• Processing time: standard processing takes 5 to 10 business days. Expedited options cost extra, each in addition to the filing fee: in-person same day $25, next business day $25, 2 hour $250, and 1 hour $500. Online filings add a $1.00 portal processing fee.
• Name rules: the name must contain limited liability company, limited company, or LLC, L.L.C., L.C. or LC. The name must be distinguishable from every name already registered or reserved with the Secretary of State.
• Name reservation: $15 holds a name for 120 days at sos.wv.gov/reserveregister-business-name.
• Registered agent: optional. Form LLD-1 asks for an agent for service of process only if you have one. The Secretary of State is appointed as attorney-in-fact for every entity that files organizing documents, so it can accept legal papers for you. If you use a registered agent, it can be an individual resident, a corporation or another LLC. Changing an agent costs $15 on Form AAO.
• Annual report: $25, filed between January 1 and June 30 each year after the registration year. Filings after June 30 cost $75 because of a $50 late fee.

On taxes, West Virginia has repealed its business franchise tax. An LLC pays no state franchise tax and, as a pass-through entity, no corporation net income tax. Members report the income on their personal income tax, which runs from 2.11% to 4.58% for tax year 2026. Rental income usually flows through to your federal return as well, and a CPA can tell you how the LLC and your rental income should be reported in your situation.

The Secretary of State's business page has the current forms. The Articles of Organization are the filing that creates the LLC. The annual report is a separate, recurring filing.

Step 3: Register a Trade Name (DBA) If You Use a Different Name

If your listings will use a name other than your legal name or your LLC name, such as Blue Ridge Cabin Co., you need a trade name registration, commonly called a DBA. DBAs are filed with the Secretary of State, not with county clerks.

• Individuals, sole proprietors and general partnerships: file Form TN-1. There is no filing fee.
• LLCs and other registered entities: file Form NR-3. The fee is $25.00, plus a $1.00 online processing fee if you file through the One Stop Business Portal.

Find the current form at sos.wv.gov/business/registration-and-waivers/register-trade-name-dba.

Common mistake: using a brand name on a booking platform, a website or a sign without filing the DBA. Platform accounts do not register a trade name for you.

Step 4: Get Your Business Registration Certificate

West Virginia has no general statewide business license. The closest thing is the Business Registration Certificate from the State Tax Division. Every individual or business entity must obtain one before engaging in business activity, and that includes renting lodging.

• Fee: $30.00, one time.
• How to file: Form WV/BUS-APP, or online at business4.wv.gov.
• Duration: the certificate is permanent until the business name, location or ownership changes.
• Locations: a separate certificate is required for each business location. Ask the Tax Division how it treats several rental properties owned by the same entity.

Registering your LLC with the Secretary of State is a filing, not a license. Forming the entity does not satisfy the BRC requirement, so you need both.

Step 5: Register to Collect Lodging Sales Tax

If you rent a house, cabin or condo for lodging, you must register with the State Tax Division, collect the tax, and remit it. The Tax Division's lodging guide, publication TSD-316 (revised 2018), is the current guide we found, but confirm with the Tax Division that it is still the latest version before you rely on it.

The tax has two layers:

• State sales tax: 6% on lodging.
• Municipal sales tax: 1% where the city has one. 101 municipalities charge it today, and 107 will from January 1, 2027. Check whether your city is on the list at tax.wv.gov before you set your rates.

Here is a simple example. A three night stay at $200 per night is $600 in room charges. State tax at 6% is $36. If the city charges 1%, add $6. Before you apply the rate to cleaning fees, pet fees or other add-ons, ask the Tax Division whether those charges are taxable.

Two rules affect the math:

• Long stays: stays of more than 30 consecutive days by the same guest are treated as a permanent place of abode and are not taxed. Keep the dates of every stay so you can show the length of a long stay if asked.
• Booking platforms: ask each platform whether it collects any tax for you and what it remits. Even when a platform collects, keep your own registration current and check its reports against your records.

Step 6: Ask About Hotel Occupancy Tax

County and city hotel occupancy taxes are separate from the state sales tax, and they are administered locally. Under W. Va. Code 7-18, the base rate is 3%, and a local government can raise it up to 6%. Not every county or city levies one, and the rate and filing rules differ.

Ask the county commission for an unincorporated property, or the city finance or clerk's office for a property inside city limits, these questions:

• Does the occupancy tax apply to my rental?
• What rate applies, and is there a different rate for short stays?
• How do I register, and how and when do I remit?
• Do I need a separate local account or certificate?

Common mistake: registering with the state and assuming that covers every lodging tax. It does not. The local occupancy tax is a separate obligation.

Step 7: Check the City Business License and Gross Receipts Tax

The state's business and occupation (B&O) tax applies only to utilities. The gross receipts business and occupation tax that many shops, contractors and service businesses pay is levied by cities. Cities also may require a city business license and a weekly per-worker city service fee.

Ask the city's finance office three things: whether lodging income is subject to the city's gross receipts tax, whether you need a city business license for a rental inside city limits, and whether a weekly per-worker city service fee applies if you pay anyone to clean or maintain the property. Do not assume the answer is no because the state tax is simple.

Step 8: Confirm Licensing for Work on the Property

West Virginia licenses many trades statewide. You do not need to license yourself to rent a property, but the people who work on it may need to be licensed:

• Contractors: the Contractor Licensing Board requires a license for residential work above $5,000 and commercial work above $25,000.
• Electricians: licensed through the State Fire Marshal.
• Plumbers and HVAC technicians: licensed through the Division of Labor.
• Alcohol: if you provide alcohol for guests, such as a bottle of wine in the cabin, ask the Alcohol Beverage Control Administration (ABCA) whether a permit applies.
• Property management: if you will manage rentals for other owners for a fee, ask the West Virginia Real Estate Commission whether a license is required.

Before you hire anyone, ask whether the work needs a license and check that the contractor holds it. A contractor's license does not transfer your obligation to confirm the work meets local code.

Step 9: Get Insurance Before Your First Booking

Call an independent insurance agent before you accept a paid guest. Many standard homeowners policies restrict or exclude business use, so a claim involving a paying guest may not be covered by the policy you already have. Ask the agent in writing:

• Does the quote include short-term rental liability coverage for guest injuries?
• Does it cover property damage caused by guests, and is there a limit?
• Does it cover lost rental income if the property is damaged and cannot be rented?
• Does the insurer need to be told about the rental before the policy is in force?

An LLC does not replace insurance. The entity can separate some business liabilities from your personal assets, but the policy is what pays for damage and injury claims.

Step 10: Set Up Records and an Annual Calendar

Open a separate bank account, and send all rental income and collected tax through it. Record every booking in the same place. When tax season arrives, your CPA will need the nightly rates, tax collected, dates of stays and any long stays over 30 nights.

Put these dates on your calendar:

• June 30 each year: the LLC annual report, $25 if filed on time.
• When something changes: update your BRC if the business name, location or ownership changes.
• When a rule changes: check city and county rules at least once a year, and again before you add a property.

Tips and Common Mistakes to Avoid

• Do zoning first. A property you cannot legally rent is a poor investment, no matter how the financials look.
• Get answers in writing. A phone call to the planning office is a start. Ask for an email or letter that states the rule.
• Register before the first booking. The BRC and the tax registration should be in place before a guest arrives.
• Do not stop at state tax. Check the municipal 1%, the local occupancy tax and any city business license or gross receipts tax.
• Keep every stay record. The 30 night rule only helps you if you can prove the dates.
• Do not rely on platform tax collection alone. Confirm what the platform collects and keep your own registration current.
• Use the official sources. Check the Secretary of State, Tax Division and your local government before you rely on a third-party guide, including this one.

What Results to Expect

With the paperwork done in the right order, a host can usually open listings with fewer surprises. Hosts who check zoning first, register with the Tax Division before the first booking and confirm local taxes may be better placed to avoid a forced shutdown, back taxes or penalties. Revenue depends on the property, its location, its season and how it is marketed, and this guide does not promise any level of income or occupancy. Expect the first few months to cost more in filings, insurance and advice than you may plan for, and expect the recurring work to be mostly bookkeeping and an annual filing.

Filing Costs at a Glance

Item	Fee	Where to file or confirm
LLC Articles of Organization (Form LLD-1)	$100, plus expedited options if needed	business4.wv.gov or Secretary of State
LLC name reservation (120 days)	$15	sos.wv.gov/reserveregister-business-name
Trade name (DBA), entity filing (Form NR-3)	$25.00, plus $1.00 online processing	Secretary of State
Trade name (DBA), individual or sole proprietor (Form TN-1)	No filing fee	Secretary of State
Business Registration Certificate	$30.00, one time per location	State Tax Division, business4.wv.gov
LLC annual report	$25 by June 30; $75 after June 30	Secretary of State
Lodging sales tax	6% state, plus 1% where the city charges it	State Tax Division
Hotel occupancy tax	Set locally, base 3% under W. Va. Code 7-18	County commission or city finance office

Official Resources

• West Virginia Secretary of State, Business
• WV One Stop Business Portal
• West Virginia State Tax Division
• West Virginia Small Business Development Center, for free and low-cost advising

Before you commit to a property or a business structure, have an attorney review the zoning and entity choice and have a CPA review the tax treatment. This article is informational content, not legal or tax advice.