How to Form an LLC in Virginia
This guide to starting an LLC in Virginia provides step-by-step instructions on filing formation documents, obtaining tax IDs, and setting up company records.
Overview
LLCs are the most popular business structure because they are inexpensive to form, provide flexibility to the owners, and are easy to run. Forming your LLC legally establishes your business, limits your personal liability, and gains tax flexibility. The following step-by-step will help you as you undertake this process.
Fast Facts: Your Budget and Timeline
Here is an overview of the total paperwork, cost, and time it takes to form an LLC in Virginia. Be sure to read the final step in this guide - "Ongoing Filings" - to understand your ongoing costs to maintain a compliant Virginia LLC.
- Form LLC-1010: Articles of Organization of a Virginia Limited Liability Company
- Operating Agreement
- IRS Form SS-4: Obtain an EIN
- Form R-1: Virginia Department of Taxation Business Registration Form
- Formation: $100 + optional $100-200 expedite fee
- Formation: ~3-5 business days plus mail time. Next-day service for $100 expedite fee. Same-day service for $200 expedite fee. File online and receive immediate confirmation (no expedite fee); however, note that after hours the effective date is marked the start of the next business day.
Step-by-Step Virginia LLC Instructions
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Check Name Availability
The legal name of your LLC may not conflict with any other registered name. Check availability of your desired name by conducting a name search.
Name Search: Virginia State Corporation Commission
Name searchName Reservation: Optional Suffix: A limited liability company name shall contain the words "limited company" or "limited liability company" or their abbreviations "L.C.," "LC," "L.L.C.," or "LLC."
Code of Virginia §13.1-1012 -
Appoint a Registered Agent
Before you officially file to create your Virginia LLC, you will need to decide who your Virginia registered agent will be. A registered agent is a business's legal appointee to receive notice of lawsuit and other legal or government notices.
State law requires every LLC to have a registered agent. The registered agent is designated when you file Virginia articles of organization with the Virginia State Corporation Commission.
Our reliable registered agent service fulfills this requirement. You get:
- Same-day documents from our local office in Virginia Beach
- Immediate online access to state forms with our address and, where required, our signature
- Annual fees from $89 to $99 per state with no additional charges
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File Virginia Certificate of Formation
File the articles of organization to create your limited liability company.
Agency: Virginia State Corporation Commission Form: Articles of Organization of a Virginia Limited Liability Company
Instructions: Filing Method: Mail or online.
Agency Fee: $100 + optional $100-200 expedite fee
Turnaround: ~3-5 business days plus mail time. Next-day service for $100 expedite fee. Same-day service for $200 expedite fee. File online and receive immediate confirmation (no expedite fee); however, note that after hours the effective date is marked the start of the next business day.
Law: Code of Virginia - Title 13.1: Corporations - Chapter 12: Virginia Limited Liability Company Act
Notes: Submit the original signed articles. Professional LLCs have other formation requirements.
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Establish Company Records
Your LLC must keep correct and complete books and records. Your filed articles of organization are the first documents for your LLC’s records. Your LLC will generate many other official records such as:
- Meeting minutes
- Operating agreement
- EIN verification letter
- Amendments and other filings made to the LLC throughout its lifetime
Organizations need a secure, centralized tool for managing and accessing sensitive records. Our Records Manager software offers a simple, efficient way for LLCs to store records, track members and managers, and customize meeting notifications.
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Create the Operating Agreement
Draft an Operating Agreement (potentially using a template) which is the governing document for the LLC. It defines the formalities of how the LLC will run itself such as holding an annual meeting. You will review and adopt the agreement at your organizational meeting.
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Hold the Organizational Meeting
The first meeting of the members of the LLC is the organizational meeting. You will need your filed articles of organization and your operating agreement in order to conduct this meeting. Keep minutes of this meeting and store them in your company record book.
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Get a Federal Employer Identification Number (EIN)
If your LLC has more than one member or will hire employees, it must obtain an EIN. An EIN is also often required to open a bank account.
Agency: Internal Revenue Service (IRS) Form: Filing Method: Mail, phone, fax, or online.
IRS fee: $0
Turnaround: Immediately online or by phone. 4 business days by fax. 4-5 weeks by mail.
Notes: The IRS website is only available during certain hours. Print your EIN before closing your session. For additional guidance, see IRS Pub 1635: Understanding Your EIN.
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Get Virginia State Tax Identification Numbers/Accounts
Virginia offers a consolidated state tax registration application for new businesses.
- Submit to:
- Virginia Department of Taxation
http://www.tax.virginia.gov/ - Form:
- Form R-1: Virginia Department of Taxation Business Registration Form
- Filing Method:
- Mail or online
- Fee:
- $0
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Consider Electing S-Corp or C-Corp Taxation
By default, your LLC receives pass-through taxation and the vast majority of LLCs keep this tax classification. Some LLCs benefit from electing S-Corp or C-Corp tax treatment:
- S-Corp treatment can help owner-employees who earn more than ~$75,000 per year save on self-employment taxes. File Form 2553: S-Corp Election.
- C-Corps suffer from double taxation: the corporation pays taxes on profits then members pay taxes on their distributions. If profits exceed $250,000 per owner, you provide employee benefits, or you will re-invest most of your profit in the business, you may benefit from the low tax rates on retained earnings under C-Corp treatment. File Form 8832: C-Corp Election.
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Obtain Business Licenses & Permits
To run your business legally, you must obtain applicable licenses and permits. The easiest way to navigate the wide range of federal, state, and local requirements is to search by your business type and locality using the Small Business Administration Business License & Permit look-up tool.
Virginia Business License
Not required
General Business License licensure is not required on the State level in Virginia.
Virginia does not have a general business license at the state level, but local licenses are often required.
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Ongoing Filings to Maintain Your LLC
You must file federal and state tax returns.
Many states also require business entities to file an annual report to maintain good standing with the secretary of state. If an annual report is required for LLCs formed in Virginia, view the table below.
Virginia Corporation Annual Report Requirements:
Agency: Virginia State Corporation Commission Form: Paper forms may be requested on this page.
Filing Method: Mail, in-person, or online.
Agency Fee: Between $100 and $1,700 depending on the number of authorized shares.
Due: By the end of the registration anniversary month. So if you incorporated or foreign-qualified on March 15, then your annual report is due every year by March 31.
Law: Virginia Code § 13.1-775.
Original Ink: Not required Notarize: Not required Penalties: Late fee of 10% or $10, whichever is greater. Your business can be dissolved or revoked at 4 months late.
Notes: - An officer or director may file.
- Original signatures are not required.
For more details, see our Virginia annual report information center page.
As your LLC grows, you will need to demonstrate your company’s good standing to banks, customers, and other state agencies. After all the work involved in forming your Virginia LLC, don’t let a missed annual report filing cause your new business to fall out of compliance.
Tracking and filing annual reports on your own can be time consuming and lead to accidental lapses. Protect your LLC’s good standing with Managed Annual Report Service, which tracks and automatically files reports on time, every time, so you can focus on your business.
Helpful Tools
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