Virginia LLC Costs
An LLC, known also as a limited liability company, is a business entity that provides business owners with liability protection, unique tax advantages, and a flexible management structure.
Many think that forming an LLC in Virginia is that it is a time-consuming and costly process. But, it is a straightforward and accessible process that is cost-effective over time.
Costs to start an LLC in Virginia
Articles of Organization ($150)
- You will file your Articles of Organization with the Virginia State Corporation Commission.
- The filing fee for your Articles of Organization is $150.
- Virginia offers expedited services for an additional $100.
Annual report fee ($50)
- Your Virginia LLC will have to file an annual report with the Office of the Clerk.
- You will use the Virginia Clerk’s Information System to file your Annual Report.
- The Virginia filing fee is $50 and must be filed every year.
- Missing the deadline will result in a $25 late fee, and the LLC will no longer be in good standing.
- Virginia has the right the dissolve your LLC if you continue to fail to pay the annual registration fee.
Registered agent fee (varies between $50 and $300)
- In Virginia, you can appoint yourself as a registered agent.
- Professionals do recommend choosing an experienced registered agent service to avoid late fees and missed deadlines.
Fees to form a foreign LLC in Virginia ($100)
- In Virginia, you must register your LLC as a foreign LLC if you have an existing LLC registered in a different state.
- The fee for registering a limited liability company as a Virginia foreign LLC is $100.
- You must complete and submit the Certificate of Registration to Transact Business in Virginia (Form LLC1052) online to the Virginia Secretary of State.
DBA filing fees ($10)
- The business term DBA is an abbreviation for doing business as.’ A DBA is any registered name a person or company uses to conduct business that is not the legal name.
- You will complete and submit the Certificate of Assumed or Fictitious Name Business Conducted by an Entity along with the $10 DBA filing fee.
Certified document copies ($6)
- You can order certified copies of your Virginia LLC documents using the Virginia State Corporation Commission Clerk’s Information System.
- The cost for certified copies of your Articles of Organization in Virginia is $6.
Certificate of Fact of Existence ($6)
- The Virginia Certificate of Fact of Existence is also known as a Certificate of Good Standing and is often required by financial institutions and banks.
- You will order the certificate through the Virginia State Corporation Commission Clerk’s Information System.
- The cost for a Certificate of the Fact of Existence is $6.
Steps to start an LLC in Virginia
Choose a business name
When choosing a Virginia LLC name, you need to consider a few things.
- Your LLC name must be unique and available in Virginia.
- It must meet the state LLC name requirements and must include the phrase limited liability company, or a version of the acronym (LLC, L.L.C.)
- When naming your LLC, It is a good idea to check for web domain availability.
You will use the Virginia State Corporation Commission Business Entity Search and conduct a name search for the name availability of your LLC name.
You can find a full list of Virginia DBA name restrictions.
LLC name reservation fee
In Virginia, you have no obligation to reserve an LLC name. You can call the Virginia State Corporation Commission and confirm the availability of the name.
The cost to reserve a Virginia LLC name with the State Corporations Commission is $10. You must renew the name registration every 120 days in order to not lose the Virginia LLC name.
Phone number: 804-371-9967 or 1-800-552-7945
Appoint a Virginia registered agent
Virginia requires you to choose a registered agent when forming an LLC in the state.
The cost for a registered agent varies depending on the route you choose to take.
A registered agent in Virginia is an individual or business entity that receives tax forms, legal documents, lawsuit notices, service of process, and other official government communications on behalf of a sole proprietorship, corporation, or LLC.
Any registered agent you choose must be a Virginia resident or a registered agent service must meet specific requirements to be authorized to conduct business in the state.
- 18 years of age or older
- A service or agent must have a physical address in Virginia.
- The registered agent has to be available during regular business hours. It is so they are able to receive service of process.
In the state of Virginia, you can be your own registered agent.
- Starter Plan: $39 a year plus Virginia Virginia State Fees
- Pro Plan: $149 a year plus Virginia State Fees
- Premium Plan: $249 a year plus Virginia State Fees
ZenBusiness offers a stand-along registered agent service. The price is $99 per year.
- Total Out The Door Virginia LLC Formation Package: $45 a month and includes:
- Virginia State Fee
- Virginia Service Fee
- Registered Agent
- Tax ID
- Annual Plan: $225 plus State Fees a year
- Economy: $79 plus $153 Virginia filing fees
- Standard: $329 plus $153 Virginia filing fees
- Express Gold: $349 plus $255 Virginia filing fees
File Articles of Organization
You will submit your LLC’s Articles of Organization to the Virginia State Corporation Commission.
You will file online using the Virginia State Corporation Commission Clerk’s Information System.
Or, you can complete the Articles of Organization of a Virginia Limited Liability Company form and submit it by mail.
The filing fee for your Articles of Organization is $150.
Form LLC1011 will ask for specific information about your LLC.
- LLC name and contact information
- Address of principal office
- Registered agent information
State Corporation Commission
P.O. Box 1197
Richmond, VA 23218-1197
Get a Virginia EIN
An Employer Identification Number, or EIN, is also called a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
An EIN is a nine-digit number that the Internal Revenue Service (IRS) gives businesses for free. The number helps identify companies for income tax purposes and acts as a Social Security number for a company.
The Internal Revenue Service mandates that you obtain an EIN for your Virginia LLC if you convert a sole proprietorship into an LLC.
The process is simple and can be done online using the IRS website.
Business banking for a Virginia LLC
It is a best business practice to keep your personal and business bank accounts separate to protect your assets and credit scores no matter what your business structure is.
You will need a copy of your Articles of Organization, operating agreement, and the LLC’s EIN to open a new business bank account in Virginia.
Most business banking accounts are free and do not come with any additional costs and fees.
Business attorney fees in Virginia
Many LLCs decide to hire a business attorney to help with the LLC formation process and assist with other business-related issues that might arise.
However, most lawyers offer free first-time consultations.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a professional business attorney will cost $300 per hour.
LLC taxes in Virginia
LLCs are pass-through entities. It means that the LLC members must report income and losses on their personal taxes rather than the LLC state filing a tax return with the Virginia Department of Revenue.
- The Virginia corporate tax is a flat 6% of net income. The tax is payable to the Virginia Department of Taxation (DOT). You will submit the state’s corporation income tax return.
- The State of Virginia does not impose state income tax or franchise tax.
- A Virginia LLC will also have various taxes, such as incoming withholding tax.
- You will submit a sales tax return every year Virginia. It is ideal to consult a business attorney or tax consultant due to high tax penalties and urgent deadlines.
- For companies that sell physical products in Virginia, you will need to register for a seller‘s permit with the Virginia State Tax Department.
- You will register for Unemployment Insurance Tax and Employee Withholding Tax online if you have employees in Virginia.
State tax and federal taxes are complicated and might be worth the hourly consultation fee.
Business licenses and permits in Virginia
Permits and business licenses will depend on the location and type of business you own.
Every city, county, or town has different rules for licenses and permits. You will want to contact your local Chamber of Commerce to ask about the process and price.
You can review the US Small Business Administration website for federal license information.
You may find that a Virginia document or form requires a notarization by a notary public.
According to Virginia law, a notary public cannot charge more than $5.
Benefits of a Virginia LLC
- Forming an LLC in Virginia makes business banking more accessible. Most financial institutions and banks require a business owner to open a business account separate from their personal banking account. It reduces personal liability for debts accrued by the business and potential future lawsuits.
- LLCs and corporations have different compliance requirements. All corporations have shareholders and stock owners that are part of the decision-making process.
- You can help avoid being subject to double taxation in Virginia. Every business entity is taxed differently. A C-corporation is a business entity that is double-taxed.
- Forming an LLC gives you a choice to be taxed as a pass-through entity. In Virginia, LLC formation ensures that earnings are taxed only once from personal tax forms.
- Virginia has some of the cheapest processing fees. The annual registration fee is $50, making it one of the most affordable in the U.S. Virginia’s filing fees and name reservation costs are just as low.
How long does it take to register an LLC in Virginia?
The LLC filing process takes 3 to 12 business days.
Virginia does offer expedited services for an additional fee.
Do I have to have an operating agreement for my Virginia LLC?
Virginia does not require LLC operating agreements.
But, many companies choose to get one because it outlines the management structure and sets up rules that all members agree to. However, even a single-member LLC should form an operating agreement to avoid future confusion.
Are there publication requirements in Virginia?
The Commonwealth of Virginia does not require you to publicize the formation of your LLC. But, it is never a bad idea to send out a press release. It is free publicity and establishes your brand.
LLC formation services offer publication services in their packages.
Does Virginia require you to submit an LLC’s bylaws?
Virginia does not mandate that you must submit your LLC’s bylaws. It is your business operating agreement that you submit and use as a blueprint to run the company.
Can I form a Series LLC in Virginia?
You can have multiple LLCs under one larger limited company umbrella in the state of Virginia.
How do I dissolve my Virginia LLC?
You will complete the Articles of Cancelation of Virginia Limited Liability Company form and file it with the State Corporation Commission. The state of Virginia has the right to automatically dissolve your LLC if you fail to pay your annual report fee or miss document submission deadlines.
The cost of dissolving your LLC is $25.
Why should I form an LLC in Virginia?
LLC formation is a good idea for entrepreneurs, corporations, small businesses, and single-owner and multi-owner LLCs. When you form an LLC, it limits personal liability when it comes to business debt and potential lawsuits.
Forming a Virginia Limited Liability Company also provides you with flexibility in management and unique tax breaks.
Can I take money out of my LLC in Virginia?
If you are a single-member LLC, you will not receive a salary or wages. Instead, you will pay yourself from your LLC’s profits. The process is called an owner’s draw.
It is perfectly legal in Virginia to write yourself a check and transfer that money from your LLCs bank account into your personal bank account.
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