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What Do Therapists Need to Know About Taxes in West Virginia?

West Virginia has a fairly traditional income tax system, but the details around entity types, annual reporting, and business tax obligations can catch therapists off guard. If you're running a private practice — solo or group — this 2025 guide helps you understand exactly what to expect.


Who this guide is for

This guide is for:

  • Licensed West Virginia therapists (LPCs, LCSWs, LMFTs, psychologists, etc.)
  • Solo or group practice owners
  • Providers working independently, via telehealth, or in a hybrid model
  • Anyone earning 1099 or self-employment income

Step 1: Pick the right structure for your practice

How you structure your business affects how you’re taxed — and how protected you are.

Sole Proprietorship

  • No formal setup unless using a trade name
  • No liability protection
  • Income reported on your personal tax return
  • Must register a DBA if using a business name

PLLC (Professional LLC)

  • West Virginia allows licensed professionals to form PLLCs
  • Offers liability protection
  • Default taxation is like a sole prop unless you elect S Corp
  • File with the WV Secretary of State and notify your licensing board

S Corporation

  • Reduces federal self-employment tax
  • Requires payroll, bookkeeping, and additional filings
  • Generally a good idea at ~$75K+ net income
  • West Virginia recognizes the federal S Corp election — no additional election needed

Professional Corporation (PC)

  • Allowed in West Virginia
  • More formal structure, typically used by larger or multi-owner practices
  • Can be taxed as an S Corp
  • Higher maintenance than PLLCs

Step 2: Know your state tax obligations

State income tax

    • West Virginia has graduated income tax rates, topping out at 5.12% (2025)
    • Applies to income from PLLCs and S Corps
  • File using Form IT-140

Business registration

  • PLLCs and PCs must register with the Secretary of State
  • Register with the WV State Tax Department for a Business Registration Certificate (renewed every 3 years)

Annual report

  • Required for PLLCs and PCs
  • Due July 1 each year
  • $25 filing fee
  • Filed with the Secretary of State

Step 3: Pay taxes throughout the year — not just in April

Estimated taxes

  • Required if you expect to owe $200+ to WV or $1,000+ to the IRS
  • Due quarterly: April 15, June 15, Sept 15, Jan 15
  • File using Form IT-140ES or pay online via MyTaxes

Self-employment tax

  • Still applies at 15.3% on net income for sole props and default PLLCs
  • Avoided (partially) through S Corp salary/distribution split

Filing requirements

  • Sole prop: Schedule C + WV Form IT-140
  • PLLC: IT-140 + annual report + business registration
  • S Corp: Federal 1120-S + WV S Corp IT-140 + payroll + annual report

Step 4: Track and claim your deductions

Reduce your taxable income — especially useful in a state with progressive income tax.

Deductible expenses for therapists

  • EHR, scheduling, and billing software
  • Office rent or eligible home office
  • CEUs, supervision, and licensing
  • Internet, phone, and office supplies
  • Insurance: liability, malpractice
  • Advertising and directory listings
  • Health insurance premiums
  • Retirement contributions (Solo 401k, SEP IRA)

Step 5: When it’s time to consider an S Corp

If you’re netting around $75K or more, it’s time to run the numbers on an S Corp.

  • Pay yourself a W-2 salary
  • Distribute the rest as profit — not subject to self-employment tax
  • Requires payroll and additional filings
  • WV doesn’t impose separate entity-level taxes on S Corps

Step 6: Common mistakes therapists make

  • Forgetting to renew the Business Registration Certificate
  • Missing the July 1 annual report deadline
  • Not separating personal and business finances
  • Electing S Corp but skipping payroll
  • Not claiming supervision, CEUs, or EHR costs
  • Delaying entity setup until after hitting higher income

Step 7: Our recommendations by income level

Net Income Range

Suggested Action

Under $50K

Sole prop or PLLC; register and stay compliant; track expenses

$50K–$100K

Evaluate S Corp; setup payroll; monitor WV quarterly tax obligations

Over $100K

Full S Corp setup; max out retirement contributions; CPA support highly recommended

Need help figuring this out?

We help West Virginia therapists structure their practices, handle state registrations, and plan for taxes — so you can focus on your work, not your spreadsheets.

Book a consult or email us at david@leichtercpa.com

Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or financial advice. While we make every effort to keep the content accurate and up to date, state laws and regulations can change without notice. You should consult a licensed professional in your state before making any decisions based on this information. Leichter Accounting Services is not liable for any errors or omissions, or for any actions taken based on the contents of this guide.