How Much Does an LLC Cost in Virginia?

Many small business owners choose to form a limited liability company in Virginia for personal liability protection and tax flexibility reasons. However, when forming an LLC in Virginia, there are a few costs to consider, like the fee for filing your articles of organization and the annual registration fee.

So, at the bottom line, how much does an LLC cost in Virginia? At the very least, there is a one-time filing fee of $100 and an annual registration fee of $50. After that, you may also need to pay for other Virginia LLC costs, such as insurance and business permits. 

This guide will go over all the costs associated with forming an LLC in Virginia so you know what to expect and how to properly budget for your new business endeavor.

How much is the Virginia LLC formation filing fee?

You must file a Virginia Articles of Organization form with the Virginia State Corporation Commission in order to form a Virginia LLC.

This business document provides information regarding the name of your LLC, your physical business address, the name of your registered agent, your registered agent's address, and the purpose of your Virginia business.

To obtain this form, simply navigate to the State Corporation Commission website and file online or download the form and mail it. The Virginia LLC formation filing fee is a one-time $100 charge. You can make it payable to the State Corporation Commission.

How much do LLC Articles of Organization cost in Virginia?

The Virginia LLC filing fee is the same thing as the Articles of Organization fee. It costs $100 to file this form online or by mail with the Virginia State Corporation Commission.

Once the state receives your $100 payment and approves your Articles of Organization document, your Virginia LLC is officially established as a legal business entity.

How much is the Virginia Statement of Information fee?

A Statement of Information is a document that provides the state with the most up-to-date information about your LLC on file. While some states require LLCs to file this annual report each year, Virginia is not one of them.

Therefore, your Virginia LLC is not required to file a Statement of Information with the state and does not need to pay any associated fees.

How much does a registered agent cost in Virginia?

In Virginia, your LLC must have its own registered agent. A registered agent is a person or business that oversees official correspondence between your business and the government.

The cost of hiring registered agent services can vary. Some registered agent services cost as little as $49 a year, while others range between $100 and $300 a year. LegalZoom registered agent services cost $249/year and include the following benefits:

• Timely alerts about important mail
• Documents scanned and uploaded for digital access from anywhere
• Email reminders about annual report deadlines
• Unlimited cloud storage for all your business documents
• All paperwork needed to switch agents, plus state fees covered 

If you'd prefer not to pay the Virginia registered agent fee, you can designate yourself as your LLC's registered agent as long as you meet the state requirements. For example, you must be a Virginia resident and a member or manager of the LLC and have a physical address within the state.

How much does a Virginia seller’s permit cost?

A seller's permit, also called a sales tax permit, is a business license allowing businesses to sell taxable goods and services and collect sales tax on transactions.

If you plan to sell goods or services in Virginia, you'll likely need to obtain a seller's permit. The good news is that there is no fee associated with filing for a seller's permit in VA. You can apply for this permit for free on the Virginia tax website.

How much do local business licenses cost in Virginia?

Virginia does not have a statewide business license requirement, but depending on your specific business operations and location, you may need to acquire additional licenses.

For instance, certain occupations, like real estate agents and contractors, need occupational business licenses, while specific industries require federal licenses. Furthermore, some Virginia cities and counties may have their own rules regarding local business permits.

You may need to contact the local government, federal government, and state agencies to determine which licensing requirements apply to your Virginia LLC. 

As for pricing, most business licenses and permits cost between $30 and $100. 

How much is the annual LLC fee in Virginia?

Unlike some other states, Virginia does not require LLCs to file annual reports. However, Virginia law does require LLCs to pay an annual registration fee. The filing fee is $50.

You can pay the annual fee online at the Virginia Clerk's Information System or mail it to the State Corporation Commission.

How much does business insurance cost in Virginia?

Virginia law may require your LLC to obtain business insurance depending on your business activities. For instance, you may need to purchase workers’ compensation insurance, property insurance, general liability insurance, or motor vehicle insurance.

Several factors can influence how much business insurance will cost you, such as the size of your LLC, number of employees, industry risks, and location of your Virginia LLC.

To give you a rough estimate, the average cost of workers’ compensation insurance in Virginia is $42 per month.

What is the Virginia franchise tax?

Some states impose franchise taxes on LLCs and other businesses. In short, a franchise tax is a privilege tax that allows businesses to exist and operate within the state..

However, Virginia does not have a franchise tax, so your Virginia LLC does not need to worry about paying this tax.

Other Virginia fees and business costs you might encounter

Although taxes aren't an initial start-up cost, it's important to consider your federal and local tax obligations and budget for them come tax season.

For example, you may decide to make your LLC a pass-through entity and pay your taxes on your individual tax return or choose to tax your LLC as a corporation and pay the Virginia corporate tax, currently at a rate of 6%. Your Virginia LLC must also consider federal self-employment taxes and federal income taxes.

What is the total cost to start an LLC in Virginia?

The total cost of forming an LLC in Virginia depends on several factors, such as whether you hire a professional registered agent service, need to obtain business licenses, and purchase insurance.

For example, if you decide to be your own registered agent and do not need to apply for a business permit or insurance, it could cost as little as $100 to form your LLC in Virginia. In this case, you'd just be responsible for the Virginia Articles of Organization filing fee.

Now, if you were to hire a professional registered agent and apply for a business license, these fees could increase your LLC formation costs to a few hundred dollars. After all, registered agent services range from $49 to $300, while business licenses are usually $30 to $100—and that’s on top of the $100 state filing fee.

Of course there are plenty of additional costs—for instance, if you purchase workers’ compensation insurance or property insurance—your start-up costs will be higher. Again, how much this costs your Virginia LLC will depend on your individual business circumstances.

Also, when calculating your yearly costs, remember to budget for the annual $50 registration fee and federal and local income taxes. A knowledgeable tax lawyer can help you get a better picture of how your LLC will affect your taxes.

FAQs

For more information regarding the cost of Virginia LLCs, check out the following frequently asked questions.

Does it cost more to register a foreign LLC than a domestic LLC in Virginia?

No, registering a foreign LLC does not cost more than a domestic LLC in Virginia. In fact, the filing fee is the same for both: $100.

Can you get grants to help cover the cost of starting a business in Virginia?

Yes, several organizations and nonprofits provide funding to help cover Virginia LLC costs and start-up fees. To obtain financial assistance, start by reaching out to your local Small Business Administration (SBA) branch and the Virginia Small Business Financing Authority (VSBFA).

What does a Virginia LLC cost?

While there are several costs to consider when forming an LLC in Virginia, the filing fee is just $100. That said, other costs you may face include those associated with registered agent services, insurance, permits and licenses, and Virginia LLC taxes.

How much does it cost to start an LLC in another state?

Every state sets its own pricing and filing requirements. For example, in California, you must pay a $70 LLC filing fee and an $800 annual registration fee, while in Colorado, the LLC filing fee is $50, and the annual fee is just $10.

Because every state is different, it's important to familiarize yourself with the LLC formation process if you decide to form an LLC in another state. 

How do I form an LLC in Virginia?

Follow these steps when forming an LLC in Virginia:

1. Select an available LLC name for your business.
2. Choose your registered agent.
3. File the Articles of Organization and pay the $100 filing fee.
4. Create an LLC operating agreement. (This step is optional in Virginia, but it's helpful when organizing your LLC and setting expectations.)
5. Obtain an employer identification number from the IRS.
6. Determine if your LLC needs additional business licenses or permits to operate.