How to Start an LLC in Virginia (2024 Step-by-Step Guide)

If you’re considering forming a Virginia LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and file Virginia LLC Articles of Organization.

But there’s more.

Filing your LLC Articles of Organization in Virginia costs about $100, and the application is approved in two to three business days.

This guide compiles all the information you need to start an LLC in Virginia today.

What Are the Steps to Start an LLC in Virginia?

To start an LLC in Virginia, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Designate a registered agent in Virginia
• Step 3. File Articles of Organization with the state
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. Register for a Virginia Tax Account
• Step 8. File the Annual Registration fee for your LLC

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Select a Name for Your Virginia LLC

Choosing a name for your Virginia LLC is an essential first step. Your LLC name must follow specific guidelines set by the state. Make sure your name stands out and reflects your brand.

Your name must include one of these phrases:

• Limited Liability Company
• LLC
• L.L.C.

When starting a law firm, medical practice, or other professional services business, you must register your company as a professional limited liability company (PLLC). In doing so, you can opt to use one of the following formats for your business name, if preferred:

• P.L.L.C.
• PLLC
• P.L.C.
• PLC

Before you decide on a name, you must confirm it’s not already in use. The Virginia Secretary of State has a name search tool you can use.

If you find a name you like, consider reserving it. You can apply for a name reservation for $10. This gives you time to finalize your plans without worrying about someone else taking your name.

If you want to operate under a different name, you can file for a “Doing Business As” (DBA) name for $10. This is useful if your business name differs from what you want to use publicly.

Always double-check your options and remember your brand identity when picking a name.

Step 2: Choose a Virginia Registered Agent

Choosing a registered agent is essential when starting your LLC in Virginia. A registered agent acts as your business’s official point of contact. They receive critical legal documents, tax notices, and court papers on your behalf.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Virginia:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Virginia Registered Agents

Virginia law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Virginia?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: File Virginia LLC Articles of Organization

To create your LLC in Virginia, you must file the Articles of Organization. This essential document officially registers your business with the state and includes details such as your LLC’s name, address, registered agent, and members’ or managers’ names.

To file your Articles of Organization in Virginia, follow these steps:

Step #1. Complete the Form: Obtain and complete the Articles of Organization form from the Virginia State Corporation Commission website.

Include the following:

• Your LLC’s principal place of business (street and mailing address)
• The registered agent’s name, address, and signature names and addresses of managers (if your LLC is manager-managed)
• The effective date of the LLC
• Signature of an authorized representative or member

Step #2: File Online, by Mail or in person: You can file your Articles of Organization online through the Virginia State Corporation Commission Clerk’s Information System or by mailing the completed form to:

P.O. Box 1197
Richmond, VA 23218-1197

You can also file in person to:

1300 East Main Street
Tyler Building, Floor 1
Richmond, VA 23219

Step #3: Pay the Filing Fee: The filing fee is $100. You can pay by credit card if filing online or by check or money order for mail submissions.

Once your articles are filed, the state will review and approve them. This process usually takes two to five business days. After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

Step 4: Prepare an Operating Agreement for your LLC

An Operating Agreement is a crucial document for your LLC. It acts as an internal guide that outlines how your business will run.

While Virginia does not legally require an Operating Agreement, having one is very beneficial. It helps prevent misunderstandings among members about roles and responsibilities.

In your agreement, you should include the following:

• LLC Name and Date: Clearly state your LLC’s name and the date the agreement is created.
• Purpose of the LLC: Describe what your LLC does. This gives clarity to everyone involved.
• Members and Contributions: List all initial members and what they contribute, whether money, property, or services.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

It’s also essential to define how new members can join. This sets clear expectations and can help avoid conflicts.

By preparing an Operating Agreement, you establish clear rules for your LLC. This can help protect your business and provide a solid foundation for growth.

It serves as your LLC’s rulebook, guiding operations and avoiding conflicts down the line. Keeping everyone on the same page is even more vital if you have partners.

Step 5: Obtain an EIN for Your LLC

An Employer Identification Number (EIN) is a unique number assigned to your business by the IRS. This number is essential for various purposes, including:

• Opening a business banking account
• Taking out a business line of credit
• Applying for certain permits
• Making contracts with wholesale vendors

Obtaining an EIN is necessary for a Virginia LLC. It identifies your business for tax purposes and ensures compliance with federal regulations.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a BOI Report

Once you have formed your LLC in Virginia, you may need to file a Beneficial Ownership Information (BOI) report. This is required under the Corporate Transparency Act.

Who Should File?

If your LLC is not exempt, you must file a BOI report. Exempt entities generally include larger businesses and certain government bodies.

When to File:

• Companies created before January 1, 2024, have until January 1, 2025.
• New companies formed between January 1, 2024, and January 1, 2025, must file within 90 days.
• LLCs formed after January 1, 2025, must report within 30 days.

How to File:

• Visit the FinCEN BOIR e-filing page.
• Choose from the options available:
  • Initial Report
  • Correct Prior Report
  • Update Prior Report
  • Newly Exempt Entity
• Select “Initial Report” for new filings and click NEXT.

Information Needed:

• Business Name and Address: Your LLC’s official name and primary location.
• Owner Information: Names, addresses, and dates of birth for each beneficial owner.
• Identification Numbers: This could include Social Security numbers or tax ID numbers.

Provide accurate and complete information to avoid delays. Filing this report is a legal requirement and helps maintain transparency in business operations.

Step 7: Register for a Virginia Tax Account

To operate your LLC in Virginia, you must register for a Virginia Tax Account. This account is essential for handling taxes correctly.

Here’s how to get started:

• Visit the Virginia Tax website. You can register online.
• Provide basic information about your business. This includes your EIN (Employer Identification Number).
• Submit your application.

After you complete the registration, you’ll receive your Virginia Tax account number, a sales tax certificate if needed, and instructions for the next steps.

It’s good to know that Virginia does not require a general business license, but you must register with the Department of Taxation. This State Tax Account Number is necessary for your LLC to conduct business in Virginia legally.

Having these registrations in place helps you stay compliant with Virginia’s tax laws. Keep any documents or account numbers in a safe place for future reference.

Step 8: File the Annual Registration Fee for your LLC

Every LLC in Virginia must pay an annual fee to maintain good standing with the Virginia State Corporation Commission (SCC). This fee must be paid annually, regardless of the LLC’s activity or income.

Even if your business has not generated revenue or conducted operations, you must still pay the fee.

The cost is $50 annually and must be paid to the SCC to keep your LLC active. Although this payment is officially called the “Annual Registration Fee,” it’s sometimes called the “Annual Fee.”

It’s important to note that only corporations in Virginia are required to file an annual report, while LLCs need to pay an annual registration fee.

Your Virginia LLC’s Annual Registration Fee is due by the last day of the month your LLC was initially approved, known as the anniversary month. If you’re unsure of your LLC’s formation date, you can look it up using the Business Entity Search tool, which will provide the exact date.

The first Annual Registration Fee will be due the year following your LLC’s approval.

For example, if your LLC was approved on September 15, 2024, your first fee will be due by September 30, 2025, and every September 30th after that.

You can pay your Annual Registration Fee two months before the due date. As a reminder, the SCC will send a “Notice of Assessment of Annual Registration Fee” around two to three months before the deadline.

This notice will be sent to your LLC’s Registered Agent by mail.

If you fail to pay the fee on time, a penalty of $25 will be added to the original $50, making the total payment $75. You have a three-month grace period to pay this penalty before your LLC is automatically canceled.

For instance, if your fee is due on September 30 and you miss the deadline, you will have until December 31 to pay the $75 without further consequences. If you fail to pay by the end of this grace period, the state will cancel your LLC.

You can pay the Annual Registration Fee online or by mail, but paying online is quicker and easier.

What are the Different Methods To Start a Virginia LLC?

You have several options for starting your LLC in Virginia. Each method has its benefits and challenges, which you should consider based on your needs and preferences.

DIY LLC Formation in Virginia

Starting your LLC is straightforward. You must complete several steps, including choosing a name, filing Articles of Organization, and paying the required fee.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Virginia?

If you want to start an LLC in Virginia on a budget, the most affordable option is to do it online. By filing the Articles of Organization directly with the Virginia State Corporation Commission, you only pay the $100 filing fee.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Virginia?

There are a myriad of Virginia LLC services from which to choose. Choosing the wrong one can affect your Virginia LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Virginia LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for 1 year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands out in Virginia LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Virginia?

Starting an LLC in Virginia involves several costs. The main fee is $100 for filing the Articles of Organization, which is required to create your LLC.

Here’s a breakdown of the costs involved in Virginia LLC Formation:

Requirement	Cost
Articles of Organization	$100
Name Reservation (optional)	$10
DBA Filing (optional)	$10
LLC Formation Service (optional)	$39 (via Northwest)
Registered Agent Fee (optional)	$0 (via Northwest)
EIN (Employer Identification Number)	Free
Annual Registration Fee	$50
Total Estimated Cost	$150 – $210

When forming a new company in Virginia, budgeting about $150-$210 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

The most significant (and essential) expense for every Virginia business owner is filing the Articles of Organization, which costs $100.

Pros and Cons of Forming an LLC in Virginia

6 Important Things To Do After Creating Your Virginia LLC

After forming your Virginia LLC, there are several vital steps to take. These actions will help ensure your business operates smoothly and meets legal requirements. Understanding these steps is crucial for your LLC’s success.

1. Research the Best Licenses and Permits for Your Business

Depending on your industry, you may need specific licenses or permits to operate legally in Virginia.

Check with the Virginia Department of Professional and Occupational Regulation (DPOR). They provide a list of occupations that require licenses.

Additionally, local governments (city or county) may have their requirements. Contact your local clerk’s office to find out what is needed.

2. Create Business Accounts for Your Virginia LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds. This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

3. Understanding Virginia Tax Requirements and Managing Your Taxes

Virginia LLCs must comply with state tax rules. Generally, you’ll need to pay state income tax for your business income. Register with the Virginia Department of Taxation to ensure you follow all regulations.

Additionally, if you sell goods or services, be aware of sales tax. If you have employees, you may also need to manage payroll taxes.

4. File Your Annual Registration Fee

In Virginia, LLCs must file an Annual Registration Fee with the Secretary of the Commonwealth. This fee is currently $50 and is due each year on the last day of the month your LLC was formed.

Keep track of your renewal date to avoid penalties. You can file online or by mail. Failure to pay this fee on time can result in losing your good standing status.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions.

6. Setup Your Business Online Presence (optional)

Having an online presence can significantly benefit your business. Start by creating a professional website that represents your brand. Include essential information like your services, contact details, and location.

Consider using relevant social media platforms for your business. This helps you connect with customers and market your services.

Virginia LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

Understanding the different structures is essential when starting a business in Virginia. Each type has its features and benefits.

Sole Proprietorship

A Virginia sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk.

Partnership

A Virginia partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too.

Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A Virginia corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders.

A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Virginia

Starting an LLC in Virginia is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

To start an LLC in Virginia, follow these key steps:

• Choose a Name: Make sure it complies with state rules and is available.
• Designate a Registered Agent: This person or business receives legal documents.
• File Articles of Organization: Submit this document to the State Corporation Commission.
• Create an Operating Agreement: Although not required, it outlines management and ownership.
• Obtain an EIN: This registers your business with the IRS for tax purposes.
• File a BOI Report: This ensures transparency.
• Register for a Tax Account: You must do this to do business in the state.
• File Annual Registration Fee: This ensures compliance with the State of Virginia.

The filing fee for the Articles of Organization is $100.

After forming your LLC, prepare for the annual registration fee, which costs $50 yearly.

Learn More About Starting an LLC in Virginia

If you need additional help to start an LLC in Virginia, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Virginia?

You can change your registered agent in Virginia. You must submit a change form and the required fee to the Virginia State Corporation Commission to do so.

How do I change my Virginia LLC’s name?

To change your LLC’s name, file Articles of Amendment with the Virginia State Corporation Commission. There is a filing fee associated with this process.

How do I renew my Virginia LLC?

Virginia LLCs do not require annual renewal. Instead, you must file an Annual Registration fee of $50, usually due on the last day of the month your LLC was formed.

How do I dissolve an LLC in Virginia?

You must file Articles of Dissolution with the Virginia State Corporation Commission to dissolve your LLC. This process officially terminates your LLC’s legal status.

How do I add a member to a Virginia LLC?

To add a member, refer to your LLC’s operating agreement. If the agreement allows, you can add them directly and update any necessary records or filings with the state.

How do I add a DBA to an LLC in Virginia?

To add a “Doing Business As” (DBA) name, file a form with the circuit court in the county or city where your LLC is located. This ensures the DBA name is registered correctly.

Can a minor own an LLC in Virginia?

Yes, a minor can own an LLC in Virginia. However, a parent or guardian might need to manage the business until the minor reaches legal age.

When is the Virginia Annual Registration due?

The Virginia Annual Registration is due on the last day of the anniversary month of your LLC’s formation. Make sure to submit your payment on time to avoid penalties.

Does LLC expire in Virginia?

No, an LLC does not automatically expire in Virginia. It remains active if you file your Annual Registration and pay the required fees.

Can a non-resident open an LLC in Virginia?

Yes, a non-resident can form an LLC in Virginia. You must designate a registered agent with a physical address in the state.

Can I buy a house or car with my LLC in Virginia?

Yes, your LLC can buy property or vehicles in Virginia. However, ensure that any purchase aligns with your LLC’s business purpose and is done under the LLC’s name.

Can you have multiple businesses under one LLC in Virginia?

Yes, you can operate multiple businesses under one LLC in Virginia. However, to avoid tax and liability issues, it is advisable to keep precise records for each business.

Is Virginia an excellent state in which to form an LLC? Is it worth it?

Virginia is considered favorable for LLC formation due to its business-friendly laws and relatively low fees. Assess your business needs to determine if it’s the right choice.

Can one person form an LLC in Virginia?

Yes, one person can form an LLC in Virginia. This is known as a single-member LLC and is common among solo entrepreneurs.