How to Start an LLC in Virginia (VA LLC 2024) (original) (raw)

How to Start an LLC in Virginia: If you’re looking to start a Virginia LLC, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC at a very low cost in Virginia. Though, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost almost negligible.

On this page, You’ll find all the steps that must be taken to ensure that your Virginia LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂

How to Start an LLC in Virginia

An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.

If you wish to start an LLC, you must file your Articles of Organization with the State and pay a filing fee of $100. While it’s the most important step, it’s not the only one. There are 4 other crucial steps to follow to get your LLC formed in Virginia. Below are all 5 steps that explain everything you need to do to start a Virginia LLC in 2024. Let’s get started! You can always hire a professional LLC formation service in Virginia to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.

Step 1: Decide a Name for Your Virginia LLC

Virginia name your llc

The first step while forming a limited liability company in Virginia is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.

LLC Naming Guidelines in Virginia

There are a few specific official naming requirements all the LLCs in Virginia must follow while naming their Company. Some of the most important requirements are as follows:

Important Links – Submit Offline Form to –
Virginia Business Entity Search – Online Name SearchName Reservation Form – PDFName Availability Standards – GuidelinesVirginia LLC Name Search – Instructions Corporation CommissionOffice of the ClerkP.O. Box 1197Richmond, Virginia 23218-1197

Reserve Business Name for Future

If you do not wish to file your LLC right now but want to hold the name you have decided on, you can reserve your LLC name for 120 days. To keep the name, you must file a name reservation application and pay $10 to reserve your name with the Virginia Secretary of State.

Doing Business As (DBA) or Trade Name

Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Virginia Secretary of State by submitting an Application to Register or Trade Name in Virginia, along with the filing fee of $10.

Recommended: You can do name search, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –

#1 TOP PICK

ZenBusiness – ($0 for LLC Formation)

Apart from LLC formation, ZenBusiness offers customized website templates and business emails at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc. Here you can get everything you need for your business in one dashboard.

Do I have to include LLC in my company email/domain?

It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.

Step 2: Assign a Registered Agent in Virginia

Virginia registered agent

The second step to forming an LLC in Virginia is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC’s behalf. This person or business will receive important tax forms, legal documents, formal government documents, business documents, any additional documents, all notices of lawsuits, and other official government correspondence in Virginia. Hence, hiring a competent Virginia Registered Agent for your LLC is necessary.

Make sure your registered agent is a resident of Virginia or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $49/year), you also get registered agent service and other services at a very reasonable price.

LLC Service Our Rating & Pricing Top Features Learn More
#1 TOP PICK 4.5/5 $0 + State Fees 100% accuracy guarantee Worry-free service Great customer support Learn More
4/5 $0 + State Fees Free LLC Formation Affordable Add-on services Other business solutions Learn More

These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Virginia. Some LLC formation services also offer standalone Virginia registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.

Who Can Be a Registered Agent?

A person above 18 years of age with a physical address in the state of Virginia can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One is responsible for handling all the legal documents on the LLCs behalf.

Can I Be My Own Registered Agent?

Yes, you can be your own registered agent for service of process if you are a resident of the state of Virginia and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Virginia.

Why Shouldn’t I be My Own Registered Agent?

There are a few reasons why you shouldn’t be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won’t be easy for you as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.

What is Piercing the Corporate Veil in LLC?

If an LLC is sued in Virginia, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are not separated anymore. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.

In Virginia, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. The filing fee should be paid for it.

Step 3: File Articles of Organization in Virginia

Virginia certificate of formation

The third and most important step in forming an LLC is to file the Certificate of Formation. This Virginia Articles of Organization is a legal document that is required to register your business with the Virginia Secretary of State. It costs $100 (by mail and online) to file your formation certificate in Virginia.

The Articles of Organization include details like the name of the LLC, the registered agent’s name, address, employees’ details, and the company’s structure (member-managed or manager-managed). Before hiring employees in Virginia LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) in other states to Virginia, you must register as a Virginia Foreign LLC.

How to File Online

Go to the Secretary of State Online Service. You will get the online service page. If you are already a user, click the “log in to Subscribe Account” option and log in with your credentials. If you’re not subscribed, you can directly start filing your LLC by clicking on the “Online Filing” button below. Read more about the Virginia Articles of Organization for online registration.

How to File by Mail

If you prefer filing real-life forms for your LLC registration, you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,

Mailing Address:

State Corporation Commission
Clerk’s Office
P.O. Box 1197
Richmond, VA 23218-1197

Processing Time: Normally, it takes around 7 business days (approx) to get your LLC formed in Virginia. The processing time for online filing might be a little faster than offline filing. However, the document processing time can be changed due to various factors.

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Every LLC owner has to pay the filing fees to register their business in Virginia. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Virginia.

Step 4: Create Your LLC Operating Agreement in Virginia

Virginia operating agreement

Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. In case, you start an LLC with a spouse, an operating agreement is a must for transparency. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

When it comes to filing a Virginia LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Virginia LLC later. Hence, having an operating agreement may not be necessary, but it is surely ideal.

Recommended: You can get a professionally made operating agreement for very less cost with ZenBusiness. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –

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ZenBusiness – ($0 + State Fees) Online LLC Setup

The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂

Step 5: Filing an LLC EIN in Virginia

Virginia file EIN for llc

The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business, for that matter.

An EIN number in Virginia is needed when the LLC hires employees. Hiring employees in Virginia LLC requires following specific rules and regulations. On the other side, EIN for Virginia foreign LLC should be obtained if your LLC is based in other states.

To obtain EIN (aka FEIN), one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.

Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999

Fax: (855) 641-6935 | Fee: Free

Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –

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ZenBusiness – ($0 + State Fees) Online LLC Setup

Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.

Congratulations, you are now done with all the necessary steps to form your Limited Liability Company in Virginia. If you do it yourself, it should take you a long time to understand and do all the steps properly.

However, if you use ZenBusiness, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.

After Starting Your Virginia LLC

After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.

BOI Report Filing

According to the Corporate Transparency Act, every LLC, corporation, and other type of business that is registered with the Virginia SOS or similar authority, must file the BOI report with FinCEN. From January 1, 2024, it is mandatory to file a BOI report for every business entity. In this report, LLCs have to share information about the beneficial owners (having equal or more than 25% share). LLC owners can file BOI reports online or offline.

LLCs in Virginia that are created before January 1, 2024, should file their BOI report by January 1, 2025. LLCs that are created in 2024, must file the BOI report within 90 business days of finishing the LLC formation process. Missing out on filing the BOI report may lead to a monetary penalty of $500/day.

Apart from that, there are a few things you need to take note of,

This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.

The LLC formation processing time in Virginia is 2-5 business days if filing offline or online. Check how long it takes to form an LLC to know about the tentative timelines.

Cost of Starting an LLC in the State of Virginia

LLCs can be formed by spending very less price. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Virginia must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Virginia,

Fees/Tax Amount to be Paid
Name Reservation Fee $10
Articles of Organization Fee $100
LLC Annual Fee $50
Sales Tax 4.3%

In Virginia, an LLC name reservation is mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 120 days without registering your LLC. It can be done by paying $10.

In Virginia, an Annual Report has to be produced every year. It costs $50. Also, the State of Virginia requires LLCs to pay a Sales Tax of 4.3%. Read our guide on LLC costs in Virginia for more information.

Virginia Foreign LLC

If you are interested in forming a Foreign LLC in the state of Virginia, then you need to file the Certificate of Foreign LLC to the Virginia Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents, like the Certificate of Good Standing, etc., to the Virginia SOS to form your foreign LLC in the state of Virginia. To know more in detail, check out our guide on Virginia Foreign LLC.

Reasons to Start an LLC in Virginia

Virginia is listed at number 4 regarding business establishment and number 1 regarding rules and regulations. This becomes a significant advantage for a business that is thinking of establishing itself in the state. Moreover, there are many benefits, like reducing tax liabilities and various business funding options offered to LLCs here. Read more on Virginia’s classification of LLC tax. If you are interested in starting one, then you should take a glimpse of the benefits mentioned.

Business Grants for Small Businesses in Virginia

Small business is always nurtured and pushed forward toward growth by the state of Virginia. There are many ups and downs that a small business goes through; that is why there is some grants program that is offered to these small businesses to help them get over these ups and downs easily. The grants are discussed below.

The Virginia Enterprise Zone

Some enterprise zones in the state are an opportunity for LLC in Virginia. There are many incentives provided to businesses that especially come and establish their business in these areas. Some of the incentives offered are:-

Some general benefits

There are some general benefits of Virginia State that leverage this state’s option over others to Start an LLC in Virginia.

Biggest Businesses in Virginia

As a business person, if you are looking forward to starting an LLC in the state of Virginia, then knowing the state economics is very important. You should study the details of Virginia state businesses and their contribution to the state economy.

Service providers

The services-providing businesses own the biggest chunk of the share in the GDP of Virginia state, i.e., around 66.67%. Yes, the state’s entire service sector is growing at a furious rate as the quality of services here is much better than in other states. The interesting fact is that only 33.3% of people are working in this sector, which means that the per capita income of this sector is also high. The total contribution of the service sector to GDP is around $226.4 billion, which is immense.

The sector includes education and health care sectors with professional and financing services. There is a small contribution of the real estate sector also in this value.

Technology Businesses

The numbers of technology workers that are present in the state are maximum as compared to other states. The state has exported the maximum number of computer chips to people worldwide, which has made the state one of the best exporters around the world. The state’s technology corridor has many firms related to technology and internet-based software, which is also booming at a huge rate.

The technology sector has alone accounted for the production of $1 billion amount of chips exported worldwide.

Agriculture

Almost 32% of the land of Virginia is occupied by the agriculture sector, which is providing around 357,000 jobs to people around. Although tobacco is not the state’s main crop, it still ranks 5th in terms of its production in the country. The main things for which the state is famous are peaches and plums in crops and turkey raising operations when it comes to poultry.

Top small business ideas that are famous in the state are:-

Virginia LLC Formation Review

Time needed: 5 minutes

Just to recap, here are the easy steps again when forming an LLC in Virginia. Click on the steps in this list to read the full detail.

  1. Name your Virginia LLC
    The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
    name your llc
  2. Choose a Registered Agent
    In Virginia, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
    registered agent
  3. File a Formation Certificate
    Filing a formation certificate is necessary when forming a Limited Liability Company in Virginia. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    articles of organization
  4. Create an Operating Agreement
    An operating agreement is not a strict requirement in Virginia, but something encouraged when you start an LLC to avoid future conflicts.
    operating agreement
  5. Get an EIN
    The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity, like a social security number, but for a company.
    file EIN for llc

Things to Consider While Starting an LLC in the State of Virginia

This article has all the key steps to start your LLC. However, there are some additional steps to take while setting up your business. Whether you’re setting up an online business or an offline one, these steps must be taken to run your LLC. If you have more than one business, like a separate business, your formation process will be separated too. These basic requirements are needed to be fulfilled. The first thing is a business plan. Professional services provide business plan examples and business plan templates added to their packages.

In general, forming an LLC is a straightforward process. The legal paperwork and the formation paperwork can be done in a few hours. In Virginia, different business filing service options are available. It can be done online or through mail documents. Some states offer expedited service at an additional fee. It takes an average of 1-3 business days to file your LLC. LLC is a business type that can be formed as a manager-managed company or member-managed company. There are some business naming rules to be followed. You can also hire a business attorney to form your company.

Another key step in forming an LLC in the state of Virginia is to get licenses. With the professionals, the business license report service can be purchased if required. Basically, with the LLC service provider, rush-filing services, filing business documents, and other worry-free services are available. Also, the LLC needs to get insurance. Businesses with employees need to get coverage for employee injury or any type of physical damage.

In Virginia, LLCs have to pay usual income taxes, as in federal income taxes. There are no direct business taxes LLCs need to pay. There might be self-employment taxes and sales taxes to be paid to the state department of taxation. LLC is a type of business entity that has additional tax benefits.

Apart from the above-mentioned points, there are bank accounts, credit cards, licenses, permits, and insurance are required to consider. Business banks are required to keep personal and business expenses separate.

Hiring a professional service will give you many things under one roof. A business entity search tool, business advisors, business email, business insurance options, business income coverage, business name reservation service, certified agent service, and business dissolution guide if you and your business partners want to dissolve the company in future.

F.A.Qs

Can I file an LLC in Virginia by myself?

If you are a resident of Virginia, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.

What is the cost of forming an LLC in the state of Virginia in a year?

Apart from the formation fee of 100(domesticLLC)and100 (domestic LLC) and 100(domesticLLC)and100 (foreign LLC), LLC costs in Virginia include $50 for Annual Reports every year. LLCs are liable to pay a sales tax of 4.3% every year.

How long does it take to get an LLC in the state of Virginia?

It takes no time to get an LLC in Virginia if you file it online. For the mail filing, it takes 7 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend ZenBusiness, which has an impeccable turnaround time.

How to renew my LLC in the state of Virginia?

Every year all the LLCs have to submit an Annual Report and pay $50 to the Virginia Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.

What is the tax structure for an LLC in the state of Virginia?

Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Virginia Classification of LLC Tax.

How Fast Can I Form an LLC in Virginia

The filing procedures for LLC in Virginia can be completed in 1 week by mail. For online filing, it may be completed immediately, once the payment is received.

Forming an LLC in Virginia is gaining popularity among aspiring entrepreneurs looking to protect their personal assets and establish credibility for their business ventures. With the flexibility and limited liability that an LLC offers, it is no surprise that many individuals are eager to kickstart the formation process. One of the burning questions on the minds of many business owners-to-be is: “how fast can I form an LLC in Virginia?”

The quick answer to this question is that the timeline for forming an LLC in Virginia can vary depending on several factors, but generally speaking, the process can be completed relatively quickly compared to other business formations. Individuals looking to establish an LLC in Virginia can expect a seamless and timely process if they follow the proper steps and fulfill all necessary requirements.

The first step in forming an LLC in Virginia is selecting a unique and distinguishable name for the business. To ensure that the name is not already taken by another business entity in the state, individuals can conduct a quick name search on the Virginia Secretary of State’s website. Once a name has been chosen and confirmed as available, the next step is to file Articles of Organization with the state. This can be done online or through mail, and the filing fee must be paid at the time of submission.

After the Articles of Organization have been filed and approved by the state, individuals must create an operating agreement for the LLC. While not required by the state, an operating agreement is a crucial document that outlines the structure and operations of the business. It is recommended that all LLCs have an operating agreement in place to set clear expectations and guidelines for the company.

Once all necessary documents have been filed and approved, individuals can obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is required for tax purposes and allows the LLC to open a business bank account, hire employees, and more. The process of obtaining an EIN can be done online through the IRS website and is typically a quick and straightforward process.

Overall, the process of forming an LLC in Virginia can be completed efficiently and with relative ease for those who adhere to the necessary steps and requirements. While the timeline for forming an LLC may vary depending on individual circumstances, those who are prepared and proactive in their approach can expect to have their LLC up and running in a timely manner. With the benefits of limited liability and flexibility that an LLC provides, it is worth the investment of time and effort to properly establish a business entity in Virginia.

In Conclusion

LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in the state of Virginia at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.