How Much Does an LLC Cost in Virginia? (Filing Fees 2024)

Starting an LLC in Virginia doesn’t have to be a financial mystery. The main cost you’ll need to cover is the $100 fee to file your Articles of Organization. On top of that, there’s a recurring $50 annual report fee.

What else might pop up?

While that one-time filing fee is clear-cut, other potential expenses include reserving your LLC name, obtaining a certificate of fact of existence, obtaining necessary licenses, and handling taxes.

In this guide, I’ll explain the fees and costs of forming a Virginia LLC and show you how to navigate the process smoothly.

How Much Does an LLC Cost in Virginia?

Starting an LLC in Virginia involves several costs. The primary expense is the filing fee for the Articles of Organization, which is $100. This is a one-time fee you pay when creating your limited liability company.

In addition to the initial filing fee, you will also pay an annual registration fee of $50, which keeps your LLC in good standing with the state.

Here are some potential extra costs you might encounter:

• LLC Name Reservation: If you’re not ready to file your LLC immediately but want to secure a specific name, you can reserve it for $10 in Virginia, which holds the name for 120 days.
• DBA (Doing Business As) Name: If you plan to operate under a different name than your LLC’s legal name, you’ll need to register a DBA, which costs $10 in Virginia.
• Certificate of Fact of Existence: Also known as a Certificate of Good Standing, this document verifies that your LLC complies with state regulations. It usually costs $6 to obtain.
• Registered Agent Fees: If you hire a registered agent to handle official documents, expect to pay between $100 and $300 annually.
• Business Licenses and Permits: Depending on your industry, you may need specific licenses or permits, which can vary in cost based on local requirements.
• Taxes: Remember federal, state, and local taxes! LLCs benefit from pass-through taxation, meaning profits go directly to you and are reported on your tax return, avoiding double taxation in corporations.

LLC Costs in Virginia (Formation Fees)

Here’s a summary of the main requirements and their fees for setting up Virginia LLC:

Virginia LLC Requirements	Cost
LLC Business Name	$0
Articles of Organization	$100
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Virginia Annual Report	$50/annually
LLC Name Reservation Fee (optional)	$10
Certificate of Fact of Existence (optional)	$6
Foreign LLC Registration (optional)	$100
Fictitious Name (DBA) (optional)	$10
Taxes	Varies
Virginia  Sales Tax Certificate of Registration	$0
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in Virginia	$150 – $440

Total LLC costs in Virginia range from $150 to $440. If you do everything yourself and skip the optional extras, you might only spend around $150. However, if you decide to pay for additional services and requirements, your costs could go up to between $300 and $440.

The first mandatory expense is the $100 fee for filing the Articles of Organization, which is essential for officially forming your LLC. Additionally, you’ll need to budget for the Virginia Annual Report, which costs $50 annually.

Now, let’s discuss the additional costs.

Obtaining an Employer Identification Number (EIN) is free from the IRS. While having an Operating Agreement is recommended, you can obtain it at no cost if you use services like Northwest.

Suppose you want to reserve your LLC name; that will typically cost you $10. You can also obtain a Certificate of Fact of Existence for $6, and if you plan to register a foreign LLC in Virginia, that incurs a fee of $100. If you wish to operate under a different name (DBA), you must pay an additional $10.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300, depending on the provider; if you choose to use an LLC formation service, that typically costs around $39. Additionally, remember that taxes can vary based on your business activities, and obtaining a Virginia Sales Tax Certificate of Registration is free.

Virginia LLC Business Name Cost ($0)

When forming an LLC in Virginia, choosing your business name does not have a cost. You can create a unique name without paying any fees upfront.

You should ensure that your chosen name is not already in use. You can check this by visiting the Virginia State Corporation Commission’s website. This step helps avoid any potential legal issues later.

Once your LLC is formed, you can keep your business name in good standing by following state rules. Ensuring your name aligns with your business’s mission and vision is good practice. This clarity can help establish your brand in the market.

Virginia Articles of Organization ($100)

You must file the Articles of Organization to create your LLC in Virginia. This document is essential as it formally establishes your business.

The filing fee for these Articles is $100. This is a one-time fee. After you pay it and the state approves your filing, there are no additional monthly or annual fees for maintaining your LLC.

The Virginia LLC processing time can vary. Online filing approvals for Virginia LLCs take 2-5 business days, while mail filing approvals take two weeks.

Before filing, ensure your LLC name is unique and complies with state rules. Your name must include “Limited Liability Company” or an abbreviation, such as “LLC.”

LLC Operating Agreement Cost in Virginia ($0 with Northwest)

Creating an LLC operating agreement is an important step in running your business. This document outlines how your LLC will be managed and the responsibilities of each member.

The cost of drafting this agreement can vary. Many people expect to pay for legal services. However, Northwest Registered Agent offers a free operating agreement. This can be a great option if you are looking to save on costs.

To make the process easier, consider these points:

• Customizable: You can tailor the agreement to your business structure.
• Clear Guidelines: It ensures everyone knows their role and responsibilities.
• Protection: It provides your LLC with legal protection and clarifies how profits and losses will be shared.

With Northwest, you can set it up without breaking your budget. This way, you can focus on growing your business rather than worrying about extra costs.

Virginia Registered Agent Fee ($0-$300/year)

In Virginia, you have options for your registered agent. The cost can range from $0 to $300 per year, depending on what you choose.

If you act as your registered agent, there is no fee. You need to provide your name and address for official documents. This option saves money but requires you to be available during business hours.

Hiring a professional Virginia registered agent service can cost between $100 and $300 annually. These services handle important documents and help keep your personal information private. For example, LegalZoom charges about $249 annually, while ZenBusiness offers services for $199 annually.

Another notable option is Northwest Registered Agent. When you use them to form your LLC, they provide their services for free for the first year. After that, their fee is $125 annually, which remains competitive.

Choosing a registered agent is an important decision. When deciding between acting on your own or hiring a service, consider your budget, how much help you need, and what level of privacy you prefer.

EIN Cost in Virginia ($0 from the IRS website)

Getting an Employer Identification Number (EIN) in Virginia is free. You can obtain your EIN directly from the IRS website without any charge. This number is important for tax purposes and helps identify your business.

To apply for your EIN, you can fill out Form SS-4 online. The process is straightforward and takes only a few minutes.

You do not have to worry about any hidden fees or costs. The EIN is necessary to hire employees or establish a business bank account.

If you have questions while applying, you can contact the IRS. Their support line is available, and they are ready to assist you.

Virginia Annual Report Fee ($50/annually)

If you own an LLC in Virginia, you must pay an annual report fee of $50. This fee is required each year after your LLC is formed or registered.

Your payment is due by the end of your LLC’s anniversary month. For example, the fee must be paid by April 30 every year if you registered your LLC in April.

The Virginia State Corporation Commission (SCC) will send you a form two months before your due date. This means you can prepare and pay well in advance.

To make your payment, use the Virginia Clerk’s Information System online. It’s a straightforward process that helps you meet the deadline without hassles.

If you miss the due date, you will be penalized. Late payments can lead to additional fees, so it is crucial to stay on top of your filings each year.

This fee structure is simple compared to other states, making it easier to budget for your LLC’s annual costs. Ensure you keep track of this requirement to maintain good standing for your business in Virginia.

Fictitious Name/DBA Cost in Virginia ($10)

When you start a business in Virginia, you might want to use a name different from your legal business name. A fictitious name or “Doing Business As” (DBA) comes in here.

Filing for a DBA in Virginia is straightforward and affordable. The fee for filing is $10. This cost applies to all business structures, whether you’re a sole proprietor, partnership, corporation, or LLC.

You can file your fictitious name online or through a paper form. If you file online, you can complete it directly on the Virginia State Corporation Commission’s website.

Once you file your DBA, it doesn’t expire. You won’t need to renew it, which makes it a low-maintenance option for business naming.

Remember that there are restrictions on what you can name your business. Certain words or phrases are not allowed, so check those guidelines.

LLC Name Reservation Fee in Virginia ($10)

If you’re planning to start an LLC in Virginia, you might want to reserve your business name first. This helps ensure no one else can use the name while you set up your LLC.

The fee to reserve a name in Virginia is $10. This fee allows you to reserve the exclusive use of your chosen name for 120 days. To do this, you must apply with the State Corporation Commission.

If you need more time, you can renew your reservation for an additional 120 days during a 45-day window before your current reservation expires.

Taking the time to reserve your LLC name ensures you can proceed confidently with your business plans. Remember, checking if your name is available before reserving it is always important. This can save you time and money.

Virginia Certificate of Fact of Existence ($6)

The Certificate of Fact of Existence is an important document for your LLC in Virginia. It confirms that your business is registered and in good standing with the state and is often required for various legal and business transactions.

Obtaining this certificate is straightforward. You can request it online through the Virginia State Corporation Commission’s website. The cost is $6.

You may need to create an account on the web portal when you request this document. The process is simple and quick. You will provide a username, password, and payment information. After submission, your certificate will be processed immediately.

Virginia Foreign LLC Registration Fee ($100)

If you want to register a foreign LLC in Virginia, you must pay a registration fee of $100. This applies if your business has already been formed in another state and you want to operate in Virginia.

The registration process involves applying to obtain a Certificate of Registration. This document allows your foreign LLC to conduct business legally in the state.

When you submit your application by mail, it usually takes about three weeks to process. If you need your application processed more quickly, there is an option for expedited service. This can reduce the waiting time to just 4 to 6 days for an additional fee of $50.

To complete the application, visit the Virginia State Corporation Commission (SCC) website. Forms are available online or as downloadable PDFs. Next, appoint a registered agent in Virginia to handle legal documents for your foreign LLC.

Prepare all necessary information before starting your application. This includes details about your business, such as its name, address, and jurisdiction of formation. Proper preparation can help ensure that your registration goes smoothly.

Virginia LLC State Business License ($0)

In Virginia, obtaining a main business license, the Sales Tax Certificate of Registration is free. This certificate allows your LLC to collect sales tax from customers.

You can easily register your business with the Virginia Department of Taxation. There are two ways to do this.

First, you may register online for convenience. Alternatively, you can print the Business Registration Form (R-1) and mail it in.

Virginia LLC Taxes (varies)

Starting a Virginia LLC means dealing with various taxes. The costs can change based on your business type and level of activity.

Here are some common taxes you may encounter:

• Federal Taxes: All LLCs must pay federal taxes on their earnings.
• State Income Tax: Virginia imposes state income tax, affecting your profits.
• Local Income Tax: Some localities charge an additional income tax.
• Business Taxes: You may face specific taxes based on your industry.
• Self-Employment Taxes: As an owner, you are responsible for these taxes.
• Sales and Use Tax: Collecting this tax is crucial for selling goods or services.
• Payroll Tax: This applies if you hire employees and pay wages.
• Property Tax: If your LLC owns property, you must budget for this tax.

Virginia LLC reinstatement fee ($100)

If your LLC in Virginia has been dissolved or is inactive, you can reinstate it by paying a reinstatement fee of $100. The State Corporation Commission of Virginia requires this fee to process your application.

You might have other fees to address in addition to the reinstatement fee. Outstanding annual registration fees can accumulate if you do not keep your LLC active. The annual registration fee is $50, plus a $25 penalty for each year it remains unpaid.

When you submit your application, include a completed Virginia reinstatement packet and your payment. This packet is essential for the reinstatement process.

If your LLC was dissolved for administrative reasons, resolving any additional issues may be necessary before reinstatement. Submitting your application online and paying any extra fees can speed up processing.

It’s important to confirm the total amount owed before applying. This will avoid delays and get your LLC back to doing business immediately.

Virginia LLC dissolution fee ($25)

When you decide to close your LLC in Virginia, you must pay a dissolution fee of $25. You submit This one-time fee to the Virginia Secretary of State.

To dissolve your LLC, you must file the Articles of Cancellation with the Virginia State Corporation Commission. This paperwork confirms your intent to close the business formally.

If you want to expedite your filing, you can pay an extra $200. This will speed up the process, allowing you to close your LLC more quickly.

Before submitting your dissolution paperwork, make sure all fees, including annual registration fees and any penalties, are settled. This will help avoid complications in the process.

Virginia LLC Change of Registered Agent Fee ($0)

Changing your Registered Agent in Virginia is straightforward and costs nothing. You can update this information without worrying about extra fees.

A Registered Agent is someone who receives legal documents for your LLC. Keeping this information current is important, as it ensures you stay compliant with state requirements.

You need to file a form with the Virginia State Corporation Commission to make a change. The form typically includes the new agent’s name and address.

You can submit this form online or by mail. Either method is simple and free of charge.

It’s a good practice to review your Registered Agent information regularly if the agent or your business address changes; updating this is key to smooth operations.

What is the Cheapest Way to Start Virginia LLC?

To start an LLC in Virginia, you have a few options. The main costs come from filing the Articles of Organization, which is required to create your LLC. This filing fee is set at $100.

You can file your documents online, by mail, or in person. Filing online through the CIS website is often the quickest method. It saves you time and helps ensure your documents are accepted immediately. However, some people prefer mailing documents for personal record-keeping.

If you want to save money, consider doing it yourself. This means you avoid paying for services like registered agents or LLC formation services, which can add to your costs. While you might find a service for as low as $39, you’ll still need to pay the state fee.

The cheapest way is to file online, which involves just the $100 fee. You will have full control over the process but must ensure everything is completed correctly.

There are some downsides to this cheap method. Filling out forms alone can be confusing, especially if you’re unfamiliar with the requirements. Mistakes can lead to delays and may require additional fees.

Should You Use an LLC Formation Service in Virginia? (here’s why)

When considering whether to use an LLC formation service in Virginia, consider the benefits it may offer. Services like Northwest Registered Agent can simplify the process.

• Privacy Protection: Hiring a formation service keeps your personal information private, reducing the chances of your data being publicly accessible.
• Peace of Mind: Formation services have experts who understand the process, helping you navigate complicated steps and easing the stress of handling paperwork.
• Ongoing Compliance: These services often manage important tasks like tracking annual fees and filings, ensuring you don’t miss deadlines and avoid penalties.

On the flip side, there are costs involved. While a service can save you time, it also comes with fees. If you have a tight budget, that’s something to consider.

A formation service may be worth it if you want to avoid the headaches associated with paperwork and compliance.

Frequently Asked Questions

How much does it cost to dissolve an LLC in Virginia?

To dissolve an LLC in Virginia, you must file Articles of Dissolution for a fee of $25. This is the primary cost associated with dissolving your business entity.

How much does it cost to reinstate an LLC in Virginia?

If your LLC is administratively dissolved, you can reinstate it by filing for reinstatement. This process costs $100 plus any fees owed at reinstatement.

Do I need a business license if I have an LLC in Virginia?

Yes, you may need a business license depending on your location and the type of business you operate. Local government requirements vary, so check with your local city or county.

Do I need to hire an attorney to form an LLC in Virginia?

In Virginia, hiring an attorney to form an LLC is not required. Many individuals complete the process on their own using the resources provided by the state.

Should I hire an LLC formation service in Virginia?

Hiring an LLC formation service may simplify the process, especially if you prefer assistance with paperwork. These services charge fees that vary based on the provider.

Are there penalties for paying my fees late in Virginia?

Yes, if you fail to pay the required fees on time, you may face penalties. This can include late fees and potential administrative dissolution of your LLC.

What happens if I do not file my Virginia LLC annual report?

Your LLC may face penalties if you do not file your annual report. Failure to file can lead to administrative dissolution, meaning the state would no longer recognize your business.