How to start a business in Virginia in 14 steps (2025 guide)

Starting a business is an exciting journey filled with opportunities to turn your vision into a thriving reality. Virginia’s diverse landscapes — from the Blue Ridge Mountains to bustling urban centers like Richmond and Virginia Beach — offer an inspiring backdrop for any new venture. If you're ready to learn how to start a business in Virginia, we’ll walk you through 14 essential steps, including choosing the right business entity, securing funding, registering your business, obtaining licenses and permits, and setting up your finances.

Why start a business in Virginia in 2025?

They say, “Virginia is for Lovers,” and that includes business lovers. Noted as the top state in the country for business by CNBC, Virginia has a comparatively low corporate income tax rate and business-friendly startup culture. Virginia offers incentives for businesses to relocate or set up shop, but the state also offers access to many major metro areas, including Washington, D.C., Richmond, and Hampton Roads. And whether you live and work in the mountains or by the beach, Virginia has you covered with landscapes as diverse as its business opportunities.

Here are the topics we’ll cover in this step-by-step guide: 

• 14 steps to starting a business in Virginia
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choosing your business name 
• Step 5: Choose your business entity
• Step 6: Secure funds: Virginia small business funding, loans, and grants
• Step 7: Choosing your Virginia business name and Virginia DBA
• Step 8: Pick a business location in Virginia
• Step 9: Find an Virginia registered agent 
• Step 10: Get an Virginia EIN, and file your tax and employer identification documents 
• Step 11: Register as a small business in Virginia
• Step 12: Secure insurance for your Virginia small business 
• Step 13: Prepare to pay taxes on your business in Virginia
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions

14 steps to starting a business in Virginia

Virginia offers a supportive environment for startups and small businesses, along with access to a highly trained workforce and a range of small business resources. Follow these steps and you’ll be on your way to building a successful venture in the Old Dominion, whether you’re launching a sole proprietorship, LLC, or corporation.

Step 1: Decide what type of industry is best for your business 

Choose the right industry for your Virginia business and consider how your skills and interests align with local industries and market demand. Virginia’s economy is highly supported by the service sector, including healthcare, technology, science, and professional services. Manufacturing, agriculture, and tourism are also thriving industries, and the large military presence in Hampton Roads is a big driver of the coastal region’s economy. Take the time to identify any gaps that your business could fill in these industries. 

Need inspiration? Explore various small business ideas to get started.

Step 2: Conduct research in your business industry

Research your target market, conduct a competitive analysis, and identify any regulations or licensing requirements specific to your chosen field in Virginia. For more information, contact the Virginia Economic Development Partnership.

Step 3: Create a business plan

Craft a clear, detailed business plan. Your business plan is the guidebook for your Virginia entrepreneurial venture. Use it as a strategizing tool to determine your business concept, goals, target market, and marketing plan. It’s also a resource for establishing financial projections and attracting would-be investors. 

Your business plan should include the following sections:

• Executive summary: A high-level overview of your plan’s key points, summarizing the vision for your business.
• Company description: Include your mission statement, company history, and specific goals.
• Market research and potential: Outline your target market and analyze industry trends.
• Competitive analysis: Assess your competitors and what differentiates your business.
• Products and services: Describe what you’ll offer and how it benefits your customers.
• Marketing and sales: Define your strategies for attracting and retaining customers.
• Business financials: Provide projections, including income statements, cash flow, and break-even analysis.
• Management and leadership: Highlight your team’s expertise and experience.
• Funding request: Detail your funding needs and how the funds will be allocated.
• Appendix: Include supporting documents and relevant information for potential investors.

Build a thorough, thoughtful business plan to help guide your decisions and attract potential investors and partners. For extra guidance, consider using a free business plan template or consulting the Virginia Small Business Development Center.

Step 4: Choose your business entity: Types of business entities in Virginia

Whether you’re going it alone or plan to create a more formal structure with shareholders, your business entity structure will determine how you pay taxes, the liabilities in your organization, and your business profitability and growth. Here are the main types of structures for Virginia small businesses: 

Sole proprietorship

A business owned and operated by one person, with no legal distinction between the owner and the business.  

General partnership

A business owned by two or more people who share profits, losses, and management responsibilities.

Corporation 

A legal entity separate from its owners, with shareholders who have limited liability for the company's debts and obligations.

Limited liability company (LLC)

A hybrid business structure combining the limited liability of a corporation with the tax flexibility of a partnership. Learn more about LLCs.

Step 5: Secure funds: Virginia small business funding, loans, and grants 

Determine how you’ll fund your venture. Starting a business in Virginia requires capital, whether it’s for renting retail space, purchasing equipment, or covering registration and permit fees. Startup costs can vary widely, possibly reaching tens of thousands of dollars. Use resources from the Small Business Administration (SBA) to plan for initial expenses based on your business’s structure, industry, and specific needs.

Take a look at some of the common funding options available:

Also, consider looking into Virginia-specific funding options, including:

Virginia Small Business Financing Authority (VSBFA) 

The VSBFA offers programs to provide businesses with financing and expansion support throughout the state. The authority offers loans, bond financings, and an equity incentive grant program.

Virginia Economic Development Partnership (VEDP) 

Check out the VEDP’s website for a host of resources on grants and incentives for small businesses in an array of industry sectors. 

Virginia Department of Housing and Community Development (DHCD)

While not a business funder, the Virginia DHCD can support and guide small businesses looking to locate in or expand into underserved communities. 

Virginia Innovation Partnership Corporation (VIPC)

VIPC offers technology companies grants up to $75,000 for research and development, product prototyping, and market research. 

Step 6: Choose your Virginia business name and Virginia DBA

Select a business name that will help you stand out from current and future competitors, as well as reflect your brand identity. Do an entity search on the State Corporation Commission (SCC) website to see if your desired name is available. 

Reserve your business name

File an application with the SCC and pay a $10 fee to reserve an available business name. This reservation lasts 120 days, but you can file a renewal during the 45 days before expiration for additional 120-day periods.

Filing a fictitious business name (DBA)

If you elect to use a fictitious business name or Doing Business As (DBA) name in Virginia, you’ll need to register that name with the SCC. Unlike formal business entity names, fictitious names don’t need to be unique and don’t require specific designators, such as “Corp,” “LLC,” or “Inc.” The filing fee is $10.

Step 7: Pick a business location in Virginia

Choose the right spot for your business in Virginia, as it can impact costs, taxes, and how easy it is for customers to find you. Maybe you’re dreaming of a cozy café in Charlottesville or a tech startup in Arlington. Wherever you plan to set up, make sure to check with your local government about any licenses and permits, zoning laws, local regulations, and any incentives the area offers.

If you’re looking to keep costs down, consider running your business from home, especially if you’re an e-commerce company or a freelancer. But if you’re looking for a space in a bigger city, here are some top locations to consider, each with distinct benefits and opportunities:

Virginia Beach

Virginia Beach is the state’s most populous city. It’s located in the bustling metro area of Hampton Roads, home to more than a dozen military installations. As a result, the defense and aerospace industries are big in this region. Other major industry sectors include logistics and transportation, healthcare, professional services, and tourism. As a popular tourist destination, Virginia Beach offers a consumer base that’s even larger than its population. You can access more information on starting a business through the Virginia Beach Department of Economic Development. 

Arlington

Located in the center of the metro Washington, D.C. area of northern Virginia, Arlington offers a thriving hub of government contracting, technology, and professional businesses. The city attracts talent from around the country and has a highly educated workforce. With a bustling economy, access to an array of cultural offerings, proximity to the nation’s capital, and excellent schools, Arlington also offers a high quality of life for entrepreneurs and their families. To learn more about locating your business in Arlington, visit the Arlington Economic Development website. 

Norfolk

Like neighboring Virginia Beach, the coastal city of Norfolk is surrounded by military installations. It’s also home to the country’s largest naval base. This military personnel presence means business owners here will enjoy a solid and reliable customer base for goods and services. Norfolk's status as a significant port city also means it has a robust logistics and transportation industry, which creates opportunities for businesses supporting this sector and provides access to markets around the globe. Compared to other coastal cities, including Virginia Beach, Norfolk has a comparatively low cost of living while still providing access to waterfront amenities and metropolitan culture. Contact the Norfolk Department of Economic Development to learn more. 

Richmond

As Virginia’s capital city, Richmond offers urban amenities in a small city setting. The city has a large talent pool since it’s home to several colleges and universities, including the University of Richmond and Virginia Commonwealth University. Richmond is centrally located along two major interstates, with easy access to Washington, D.C., Hampton Roads, and western Virginia. Major industries here include financial services, healthcare, and technology. Get your small business off the ground with the help of Richmond Economic Development. 

Roanoke

If you prefer mountains to the beach or big urban centers, then Roanoke offers an attractive small business location as western Virginia’s largest city. Still a growing city, Roanoke offers a lot of opportunities for entrepreneurs with a lower cost of startup as well as a lower cost of living. Healthcare, finance, manufacturing, and logistics are Roanoke’s biggest industries. Access resources to get your small business going through Roanoke Economic Development.

Step 8: Find a Virginia registered agent

The state of Virginia requires you to have a registered agent if you operate a business, whether as a professional service or an individual. Your registered agent acts as a point of contact for your business’ important state and legal mail. 

To be a registered agent in Virginia, you must be a Virginia resident with a physical business address (not a P.O. Box or remote location) and be available during regular business hours. You also need to be either a member of the Virginia State Bar or part of the business's management team (for example, an officer, director, manager, or partner). If you choose, you can hire a third-party company like a law firm or registered agent service to fulfill this role. However, a business cannot act as its own registered agent. If you use a service for a Virginia registered agent, you’ll pay a fee likely ranging from $50 to $300 per year. Visit the State Corporation Commission website for more information.

Step 9: Get a Virginia EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although Virginia doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. You can apply for a free EIN through the IRS website.

Step 10: Register as a small business in Virginia

Register your small business through the State Corporation Commission. Here are the requirements for registering partnerships, corporations, and two-person companies.

Step 11: Register for your business license and permits in Virginia

Depending on your industry, you may need business licenses and permits to operate in Virginia. Some localities may also require permits, so perform your due diligence.

Do you need a business license in Virginia?

Unlike some states, Virginia doesn't mandate a general business license for all businesses to operate within the state. However, your locality may have specific occupational licensing requirements, so check with local municipalities.

If you’re starting a business and unsure what licenses and permits you may need, contact the Department of Small Business & Supplier Diversity for assistance.

Step 12: Secure insurance for your Virginia small business

Protect your Virginia business assets and tangible property by getting business insurance. This coverage can help mitigate costs from accidents, property damage, or liability. Extreme weather, from hurricanes to floods, is not uncommon in Virginia, so make sure you’re adequately protected if you have a brick-and-mortar store, warehouse, or industrial facility.

Types of small business insurance in Virginia

Here are common types of Virginia small business insurance:

Step 13: Prepare to pay taxes on your business in Virginia 

Understanding your tax obligations as a small business owner is crucial for long-term success. Make sure you understand what Virginia taxes you may owe. 

Here are the frequent types of Virginia business taxes:

Corporate income tax

Virginia’s corporate income tax rate is 6%. Corporations must file an annual income tax return (Form 500) in Virginia.

Sales and use tax

The statewide sales and use tax rate in Virginia is 5.3%, though some localities may have local sales taxes as well. 

Other unique Virginia tax situations

Virginia has a number of other taxes that are industry- or business-specific, including excise and assessment taxes. 

Tax credits and incentives for Virginia employers

Virginia offers a variety of tax credits and incentives designed to support small business growth and development: 

• The Major Business Facility Job Credit offers tax credits for creating new jobs in specific industries and regions.
• The Research and Development Tax Credit provides tax credits for businesses engaged in research and development activities.
• The Qualified Equity and Subordinated Debt Investments Credit encourages investment in Virginia businesses by offering tax credits.
• The Worker Training Tax Credit provides tax credits for businesses that invest in employee training.
• The Green Job Creation Tax Credit supports businesses creating jobs in the green economy.

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records.

Step 14: Set up your business bank account

One of the first things you need to do when starting a small business in Virginia is set up a business bank account to manage your finances. Here’s how: 

1. Get your paperwork in order, from registrations and permits to licenses and your EIN, to open your small business bank account. 
2. Look for a bank that provides the loan products and services you need. 
3. Apply for a credit card either through your bank or a third-party company so you can begin establishing business credit and charging business-related expenses. 
4. Choose an accounting software and tie it to your business bank account to manage everything from payroll to invoicing. 
5. Find a professional accountant who understands your industry and Virginia tax laws to help you navigate finances and other bookkeeping items.

Additional resources to get your business started

There are several state and federal resources that can support your business with guidance, training, potential funding and more. 

State resources

Virginia Economic Development Partnership (VEDP): VEDP supports both startups and growing businesses, from assisting with site selection to offering incentives for expansion, They also offer international trade resources for businesses looking to expand globally.

Virginia Small Business Financing Authority (VSBFA): VSBFA offers financing programs for small businesses across the state, including direct loans, credit enhancements, and bond financing.

Virginia Department of Small Business and Supplier Diversity (SBSD): The SBSD provides resources for small, women- and minority-owned businesses in Virginia. They offer certification programs, technical assistance, and training, along with access to state contracting opportunities.

Virginia Community College Workforce Alliance: This organization works with community colleges across the state to provide affordable training and certification programs. If you need to upskill your team or hire qualified workers, they’re a great place to start.

Federal resources 

Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.

Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 

Small Business Innovation Research: (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 

SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.   

U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America.

Frequently asked questions

How long does it take to start a small business in Virginia?

Starting a small business in Virginia can take anywhere from a few weeks to several months, depending on your entity type, the complexity of your industry, and the required permits or licenses. 

How to start an LLC in Virginia?

To start an LLC in Virginia, you’ll need to choose a unique name and appoint a registered agent. Then, you’ll file Articles of Organization with the Virginia State Corporation Commission, which requires a fee of $100. Consider creating an operating agreement to outline ownership and management, and research any necessary business licenses and permits you may need. Make sure you obtain an EIN so you can pay state and federal taxes. 

How to get a small business license in Virginia? 

Virginia does not require a statewide general business license, but you may need to obtain locality—or industry-specific licenses.

Disclaimer: 

This content is for information purposes only and information provided should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does it have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.