Virginia LLC Fees: Everything You Need To Know
Virginia LLC fees are the costs associated with establishing a limited liability company in the state.3 min read updated on January 01, 2024
Virginia LLC fees are the costs associated with establishing a limited liability company in the state. Small business owners like this type of entity because of its low cost of formation, easy administration, and management flexibility, as well as limited personal liability and beneficial taxation.
Forming a Virginia LLC
Specific state requirements must be followed to register your LLC in Virginia. You'll need to come up with a name for your business, register with the State Corporation Commission, and file all required paperwork. Initial forms and associated costs are as follows:
- Articles of Organization for a Virginia LLC, Form LLC-1010.
- LLC Operating Agreement.
- Employer ID number registration using IRS Form SS-4.
- Form R-1, Virginia Department of Taxation Registration for Businesses.
- $100 fee with an additional fee of up to $200 for expedited service.
Standard service takes 3-to-5 business days for your paperwork to be mailed out. You can receive next-day service for an additional $100 fee or same-day service for an additional $200. When you file online, you'll get immediate confirmation of your registration without an additional fee. When you file after business hours, processing begins the following business day.
Detailed Step-By-Step Process
- Choose a name for your Virginia LLC. It must describe your business, attract potential clients, and be easily searchable online. The name must contain the words limited liability company or the abbreviation LLC. Some restricted words, such as bank, require a licensed individual or additional paperwork. Some words, such as secret service or state treasury, are completely prohibited.
- Search the state business name database to make sure the name you've chosen is available.
- Check whether the domain name for the business is available and purchase it so that it can't be taken by another business.
- File Form SCC631 to reserve your business entity name with the Virginia State Corporation Commission. This form holds the name for 120 days and only requires your business name, address, phone number, and signature. This form carries a $100 fee.
- Name a registered agent, which is a person or business authorized to send and receive legal documents such as service of process on behalf of your business. This can be one of the business owners as long as he or she has a physical address in Virginia. You can use a resident agent service for the convenience of 9 a.m. to 5 p.m. availability to accept documents as needed, especially if you live in a different state.
- Using a service also keeps your home address private, since the registered agent's address must be public record. A service can also keep you apprised of state filing deadlines and other important information.
- Get an employer ID number (EIN) by filing IRS Form SS-4. No fee is associated with this service. The form can be filed either online or by printing and mailing the required form. The EIN is similar to a Social Security number for your company and is used to file taxes, hire employees, and open bank accounts for your business.
- Research Virginia's state and federal tax requirements. You can opt for various federal income tax treatments, each of which carries different reporting responsibilities. Your accountant can help you understand the tax laws that affect your LLC and plan accordingly.
- Register as a state taxpayer if you are selling a product in Virginia that is subject to sales tax or if you plan to hire employees.
- Create an operating agreement for your LLC. While this is not required by the state, it will be recognized as a legally binding document. This can be used to resolved financial or operational issues that arise in the future. The operating agreement should outline all the administrative procedures and other aspects of your business.
- Research required business licenses and permits, which vary based on the location and type of business. They may include zoning permits and building permits. The local Department of Finance or Commission of Revenue is a good source for information about the required permits in your county or municipality. You can also consult the online guide published by the U.S. Small Business Administration (SBA).
- Pay the annual LLC fee of $50 to remain in good standing with the state.
If you need help with Virginia LLC fees, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.