How to Start an LLC in Virginia

Virginia is one of the best states to start a limited liability company (LLC) thanks to its low $100 filing fee and straightforward application process. You can do everything yourself by following the steps below, or you can launch your Virginia LLC through LegalZoom for $0 (plus the state filing fee). 

Either way, let’s walk through the entire process, from selecting a name to complying with federal reporting requirements for new businesses. 

 

How to get a Virginia LLC in 8 steps

Before you begin, you should create an account with the Virginia State Corporation Commission (SCC) if you plan on filing online (the state’s recommended process). You can also fill out a paper application (we’ll discuss this further in Step 3). Here’s how to get started. 

Step 1. Name your Virginia LLC

First, you'll need to choose a unique name for your LLC. This means your name must be distinguishable from existing businesses registered in Virginia. 

You can do a search through the SCC’s website to determine if a particular business name is in use. Be sure to check for any close matches to rule out names that sound too similar to yours (e.g., “Richmond Flooring” vs. “Richmond Tile and Flooring”). 

Names must also comply with Virginia’s naming requirements, which include the following:

• Your business name must include the words limited company, limited liability company, or an acceptable abbreviation (LC, L.C., LLC, or L.L.C.).
• The business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.) or identifiers that suggest it’s not an LLC, such as Inc. or Corp. 
• Certain restricted words (bank, trust, engineer, architecture, land surveying, or any variations that imply the same meaning) can only be used if your business entity offers these services. 

Before including the Virginia LLC name in your articles, it’s a good idea to review Virginia's naming rules to prevent rejections and delays. If you aren't ready to register your LLC but are concerned your name might be taken by someone else, you can reserve it for $10. In Virginia, names may be reserved for up to 120 days by paying the fee and submitting the proper form to the SCC.

Step 2. Choose your registered agent

All LLCs in Virginia must appoint a registered agent, which is a person or entity authorized to receive service of process, official legal documents, and notices on behalf of your LLC. 

If you’re appointing an individual person as your registered agent, then the person must be a Virginia resident, have a physical business address in Virginia, and be available during regular business hours.

In addition, they must meet one of the following criteria:

• Licensed to practice law in Virginia
• Part of business management (i.e., an active member or manager of your LLC)

Keep in mind that you can appoint yourself or an employee of your LLC to act as a registered agent, provided you or the employee meets the SCC’s registered agent qualifications.

If you appoint a business entity as your registered agent, then the business must be registered to do business in Virginia as a corporation, LLC or LLP.

Step 3. Prepare and file articles of organization

Next, you can file your paperwork (officially known as articles of organization) with the SCC to register your Virginia LLC. Though it sounds like a big job, that really consists of filling out a relatively simple online form and submitting it. You can also send it by mail, but the state recommends filing online for a faster response.

To prepare your articles, you'll need the following information:

• Your LLC’s name and principal office address
• The registered agent’s name, qualification (e.g., a member of the Virginia State Bar or a manager of the LLC), and address

Whether you fill out a paper application or apply online, you should first review the SCC’s instructions (found at the top of the first page) to avoid mistakes or delays. Lastly, you or the person forming the LLC is required to sign the articles.

Once you file your articles, the SCC will review the filing. If approved, the state will issue an acceptance email or letter (depending on how you applied) that confirms the LLC formally exists. You should keep a copy of this confirmation, as you’ll need it to obtain an employer identification number (EIN), business licenses, and a business bank account.

If the SCC rejects your articles, you’ll receive an explanation of the error and how to correct it. To avoid delays, it’s important to carefully review your paperwork and ensure the details are correct. 

Step 4. Create an operating agreement

An operating agreement is an internal document that outlines the way your LLC will conduct business. 

While Virginia doesn't require you to file an operating agreement, you should strongly consider creating one for various reasons, including settling disputes that may arise over financial agreements and other potential litigation.

An LLC operating agreement can include, but is not limited to, the following:

• Your LLC's name, duration, and principal address
• Name and address of the registered agent
• Copy of the articles of organization
• Purpose of the business
• Members and their contribution
• Allocation of profits and losses
• Procedure for adding and removing members
• Management of the LLC
• Indemnification and liability clauses

Without an operating agreement in place, the courts make determinations based on Virginia law, not necessarily what is in the best interest of the LLC and its members. However, you can get an LLC operating agreement for as low as $99 through LegalZoom.

Step 5. Get an employer identification number and open a business bank account

You can apply for an employer identification number (EIN) through the Internal Revenue Service (IRS), which is a nine-digit number that identifies your LLC for tax purposes. You can obtain your EIN by mail or online, as well as through services like LegalZoom if you’d rather not do it yourself.  

The purpose of an EIN is to assist with the following:

• File and manage federal and Virginia state taxes.
• Open a business bank account.
• Hire employees.

After you receive an EIN, you can begin to research business bank accounts for your Virginia LLC. You can usually find options through big banks like JPMorgan Chase and Bank of America, or you might contact local credit unions in Virginia. 

Step 6. Register for taxes and Virginia business licenses

All new LLCs in Virginia must register for state taxes through the Department of Revenue’s online portal. Be sure to read the instructions and gather all the required information, which includes the following: 

• Your LLC’s EIN
• Your contact information and Social Security number
• General business information and NAICS code 
• The tax types you’re registering for 

Virginia follows the federal model for state income taxes, treating LLCs as pass-through entities by default. However, LLC owners can elect to be taxed at the entity level, which transfers the state income tax liability from the owners to the business. In addition, most LLCs must collect and remit a 5.3% to 7% sales tax to the state, depending on the county, as well as payroll taxes (see more in the next step). 

As for permits, Virginia doesn’t require a general business license for LLCs. Still, many cities and counties have their own requirements, so be sure to check with your local government authorities. Certain professions must also obtain certifications through the Department of Professional and Occupational Regulation (DPOR), which provides a list of applicable occupations and their requirements. 

Alternatively, you can leave the license and permit search to LegalZoom, and we’ll find out exactly what you need. 

Step 7. Comply with employer obligations

If you hire employees for your new LLC, you’ll need to comply with the following requirements: 

• Employers must report employees. Employers must report new employees to the government within 20 days of their hire date.
• Employers are required to withhold taxes. In Virginia, employers are required to withhold federal, state, and local income taxes from their employees' wages and forward what is collected to the government.
• Employers must pay unemployment taxes. Employers in Virginia must pay taxes to the state unemployment fund.
• Employers must buy workers’ compensation insurance. In Virginia, employers must purchase workers’ compensation insurance for work-related injuries.

If you have any specific questions about employer obligations, whether at the federal level or in Virginia, we can connect you with a business attorney for a flat rate. 

Step 8. File the Beneficial Ownership Information Report (BOIR)

Lastly, you will likely need to file a Beneficial Ownership Information Report (BOIR), also known as a BOI report, with the Financial Crimes Enforcement Network (FinCEN) to comply with the Corporate Transparency Act. This law requires you to disclose information about the individuals who have significant control or ownership (25% or more) in the business. 

This step is particularly crucial, as failure to comply can result in high fines (currently at $591 per day) and up to two years of jail time. You must file the BOIR within 90 days of registering your LLC (if formed in 2024) or 30 days (if formed in 2025 or later).

 

 

Next steps after forming your Virginia LLC

With most of the formation work out of the way, you can start to handle other needs to make your LLC official. Here are some other steps you might take: 

Register a domain name

You’ll need to purchase a domain name if you want a professional email address or plan on building a website. Even if you don't think you'll need a webpage immediately, you probably will at some point. At the very least, you should reserve the option of having one in the future by buying your domain name now. Here’s how: 

1. Choose a domain registrar (e.g., Google Domains or GoDaddy) and search for your desired domain name. Ideally, this should match your LLC name. 
2. Select a domain extension and purchase the URL. 
3. Set up domain privacy, purchase hosting, and build your site. 

Before finalizing your LLC name in the articles of organization, it's a good idea to check if the URL is available. Still, you can always make slight tweaks or use different domain extensions if you can’t find an exact URL match for your LLC name. 

Ongoing requirements

Registering your LLC gives you a legal foundation to conduct business, but you still need to keep your LLC compliant to remain in good standing.

Unlike other states, Virginia does not require an LLC to file an annual report. However, to keep your LLC registration active in Virginia each year, you must pay an annual $50 registration fee (note that there’s a $25 penalty for late payments). In addition, LLCs must pay all applicable state and federal taxes, some of which may require you to make quarterly tax payments. 

You also need to maintain a registered agent for your business, so be sure to file a statement of change if you ever switch agents. 

Obtain a certificate of fact of existence or registration 

While optional, you might need a certificate of fact of existence or registration—known as a certificate of good standing in other states—to apply for loans, create new contracts, or expand your business into different states. 

To obtain one, you can visit the Virginia SCC’s website and download it immediately. You can also request a certified copy of official documents for $6, while noncertified copies are free.  

Consider a foreign LLC

If you ever decide to expand your LLC outside of Virginia, you’ll typically need to register as a foreign LLC. This generally involves the following steps: 

• Check entity name availability in the new state (similar to the VA name check from Step 1).
• Appoint a registered agent who’s located in the new state.
• Review any additional requirements unique to the new state. 
• File a certificate of fact of existence or registration (or similar official document) with the new state’s business filing office, usually the Secretary of State (SOS). 
• Pay the required filing fees. 

Before expanding, you should review the specific regulations, tax implications, and compliance requirements of the target state. You might also consult a business attorney or tax professional to ensure you meet all necessary obligations. 

The cost of forming an LLC in Virginia

Starting an LLC in Virginia costs at least $100, though the total costs may increase to around $600. Here’s a breakdown:

• Articles of organization filing fee: $100
• Reserve, renew, or transfer a reserved business name: $10 (if needed)
• Registered agent services: $0 to $300 annually, depending on whether you appoint yourself or use a professional service
• Licenses and permits: Generally $30 to $100, though costs may be higher for specialized or heavily regulated industries. 
• Insurance: Varies widely, but as a reference point, workers’ compensation insurance typically costs around $42 per month in Virginia. 

However, these are just the initial and basic costs. Your LLC may have additional expenses based on its needs, such as professional fees or industry-specific certifications, so you’ll want to budget accordingly before proceeding. 

How to start your Virginia LLC with LegalZoom

While you can follow the process above to start an LLC in Virginia, LegalZoom can make it easier by handling most of the paperwork and filings for you. Simply tell us about your business, provide us with your information, and we’ll file your articles of organization with the Virginia SCC. 

We also offer other services to help you stay compliant, from business and permit searches to BOI reports and amendment filings. But if you just need to register your LLC, you can partner with us for free and only pay the required filing fee. 

FAQs

What are the benefits of registering a Virginia LLC?

A registered LLC makes it possible for you to obtain permits or licenses necessary to operate your business. Registering your Virginia LLC also allows you to open a business bank account, apply for a business credit card, purchase insurance for your business, and protect your name and logo with a trademark.

Do I need a business license for my VA LLC?

Virginia doesn’t require a general state business license, but you may need specific licenses depending on your location. Certain professions may also require licenses from the Virginia DPOR. Check with your local city or county government for more information, or consider using LegalZoom to determine what certifications you’ll need.

How long does it take to form an LLC in Virginia?

The Virginia SCC doesn’t provide an official time estimate to form a limited liability company, but it’s reasonable to expect the filing process to take 5 to 10 business days after submission. However, online LLC formation applications may process faster, and the SCC offers expedited services for same-day or next-day filing (available for an additional fee). 

How do I correct filing errors in Virginia?

If there’s an issue with your filing, the SCC will notify you, explain the error, and provide instructions on how to correct it. They will also show you how to resubmit the corrected filing, but if you have any questions, you can contact the Office of the Clerk of the Commission directly. You will also need to pay a $25 fee.

How do I dissolve an LLC in VA?

To dissolve your LLC in Virginia, simply file Form LLC1050 with the SCC. This can be done either online through the SCC’s website or by mail. Note that there’s a $25 filing fee associated with the business entity dissolution process. 

Rudri Bhatt Patel contributed to this article.