How to start an LLC in Virginia: Your 2025 step-by-step guide

When launching a business in Virginia, one of the first decisions you’ll make is choosing a business structure. Options include a sole proprietorship, partnership, corporation, or limited liability company (LLC), each with its own legal, tax, and operational considerations. Selecting the right structure is key to aligning with your business goals and long-term success.

New small business owners frequently choose the LLC structure, as it offers some important advantages. 

Jump to:

• Why choose an LLC in Virginia?
• New business data in Virginia in 2025
• 5 steps for creating an LLC in Virginia
• Step 1: Choose a name for your Virginia LLC
• Step 2: Choose a registered agent in Virginia
• Step 3: Complete the Articles of Organization form and file your Virginia LLC
• Step 4: Get an Employer Identification Number (EIN)
• Step 5: Ongoing compliance and required filings
• Types of LLCs to consider in Virginia
• Costs of setting up an LLC in Virginia
• LLC Taxes in Virginia
• Frequently asked questions

Why choose an LLC in Virginia?

A limited liability company, known commonly as an LLC, is a business structure that offers its owners limited personal liability for the company's debts and obligations. This means that, typically, personal assets are protected from business liabilities. LLCs combine features of both corporations and partnerships, providing flexibility and protection for business owners. Let’s break down a few of the advantages: 

• Limited liability protection: Owners (referred to as members) are generally not personally responsible for the company's debts and legal liabilities.
• Pass-through taxation: By default, LLCs are treated as pass-through entities for tax purposes, meaning profits and losses pass through to the members' personal tax returns, avoiding corporate taxation.
• Operational flexibility: LLCs have fewer formalities compared to corporations, allowing for flexible management structures and operations.

This guide will explain how to start an LLC in Virginia. It covers the costs and paperwork involved, tax considerations, how accounting software could help, and other important information to set yourself up for success. 

New business data in Virginia in 2025

Small businesses are the backbone of Virginia’s economy, with over 850,000 small businesses employing 1.5 million workers across the state. Virginia is also emerging as a top destination for franchising. According to the International Franchise Association (IFA), Virginia is set to add 1,447 new franchise businesses in 2025, providing 270,173 direct jobs and contributing $26.8 billion to the state’s economy. 

Business expansion and infrastructure investments are a priority. Virginia has allocated $50 million to the Virginia Business Ready Sites Program, which helps prepare locations for new business development. Plus, the life sciences industry is thriving, attracting top companies thanks to the state’s skilled workforce and premier research institutions. This growth has led to 62 major projects, 6,200 new jobs, and $2.5 billion in investment over the past five years.

All these contributing factors help position Virginia as a prime location for entrepreneurial success. 

5 steps for creating an LLC in Virginia 

Creating an LLC can be a great way to help establish a business without having personal liability. Getting started involves a few steps, including selecting a distinct business name, completing and filing paperwork, and obtaining an EIN. Below is a breakdown of each step to help you confidently launch your LLC.

Step 1: Choose a name for your Virginia LLC

The initial step in starting an LLC is to choose a legal name for your business. This name differs from a trade name or a trademark, which require separate registrations.

Select a name that is easy to remember and lets prospective customers know what products or services your company will provide. You must ensure that your name complies with Virginia's naming rules. 

Virginia LLC naming rules

When selecting a name for your LLC in Virginia, you must adhere to specific state regulations to ensure compliance and successful registration.

Uniqueness requirement

Your LLC name must be distinguishable from any existing business entity names on record with the Virginia State Corporation Commission (SCC). This includes names that have been designated, registered, or reserved for use by another company.

LLC designation

Your business name must include one of the following legal designations:

• Limited Liability Company
• Limited Company
• L.L.C.
• LLC
• L.C.
• LC

Restricted words and prohibited terms

Certain words require special approval before they can be used in an LLC name, while others are strictly prohibited:

• Your LLC cannot include words that imply it’s a different type of business entity, such as:
• Corporation or Incorporated
• Corp. or Inc.
• The name cannot falsely suggest it is engaged in regulated industries without authorization, including:
• Bank or Trust (unless operating as a financial institution)
• Insurance Company (unless properly licensed)
• Engineer, Architecture, or Land Surveying (unless providing these services with appropriate licensure)
• United States, National, Federal, or Reserve (if used in a way that suggests government affiliation)

Core name distinguishability

Virginia disregards certain elements when determining if an LLC name is unique. Words like "LLC" or "Company," common articles (e.g., "the," "and," "or," "of"), and punctuation marks are not considered when comparing names.

Visit the Virginia State Corporation Commission website for more information on business entity names. 

Check for name availability

Before finalizing your LLC name, check its availability through the Virginia State Corporation Commission (SCC) business database to ensure compliance and prevent registration delays.

Reserve your LLC name

In Virginia, you don’t need to reserve a business name before filing the paperwork to establish an LLC. However, if you want to secure your desired name while preparing your formation documents, you may opt to reserve it. 

To reserve a business entity name, submit an Application for Reservation of Name through the Clerk’s Information System (CIS). You'll need to submit a filing fee of $10, which will reserve the name for 120 days. You may renew the reservation every 120 days. The business name will only become permanently yours after you establish an entity with that name in Virginia.

Step 2: Choose a resident agent in Virginia

When forming an LLC in Virginia, you are required to designate a registered agent. This individual or entity serves as the official point of contact for receiving legal documents and official communications on behalf of your LLC.

Who needs a registered agent?

• All LLCs formed within Virginia must appoint a registered agent.
• LLCs formed outside of Virginia but registered to do business within the state must also designate a registered agent in Virginia.

Who can be a registered agent?

• Individual: A Virginia resident can be a registered agent if they: 
• Have a physical business address in Virginia (P.O. Boxes are not allowed)
• Are available during normal business hours

The individual must also meet one of the following qualifications:

• Be a member of the Virginia State Bar
• Be part of the business entity’s management, such as:
• An officer or director of a corporation
• A member or manager of a limited liability company (LLC)
• A trustee of a business trust
• A general partner of a limited partnership
• A partner in a registered limited liability partnership
• Business entity: A business entity may also serve as a registered agent for another business if it:
• Is a Virginia-based company or an authorized foreign entity
• Has a physical business address in Virginia matching the registered office
• Is legally permitted to act as a registered agent in the state

It's important to note that an LLC cannot act as its own registered agent in Virginia.

Choosing a registered agent service

If you prefer, you may hire a professional registered agent service. These services provide a physical address in Virginia and are available during business hours to accept legal documents on your behalf.

There are registered agent services throughout Virginia. If you’re thinking about hiring a professional provider, here are some tips for finding the right one.

Research and compare

Be sure to research different providers and compare factors such as:

• Cost: Fees typically start around $50 per year.
• Reputation: Choose a reputable company with a proven track record.
• Customer support: Ensure they provide excellent customer service and support.
• Knowledge: Select a provider with a strong understanding of Virginia-specific compliance requirements to ensure your business stays in good standing.
• Coverage: For businesses operating in multiple states, choose a provider that offers services across all the states where you plan to operate.

Consider bundled services

If you're using a company formation service or an attorney to set up your LLC, they may offer registered agent services as part of a package.

Step 3: Complete the Articles of Organization form and file your Virginia LLC

Once you’ve decided on your name and your registered agent, the next step is to fill out the Articles of Organization form.

What is an Articles of Organization?

The Articles of Organization is a legal document filed with the Virginia State Corporation Commission (SCC) to officially establish your limited liability company within the state. This document includes essential details such as your LLC's name, principal office address, registered agent information, and the LLC's management structure. Filing this form legally creates your LLC in Virginia.

In Virginia, the Articles of Organization are filed with the SCC's Office of the Clerk. The filing fee is $100. You have two options for filing:

Option 1: Online Filing

The SCC recommends filing online through the CIS (Clerk's Information System). 

You’ll receive an email acknowledgment and payment receipt after checking out, as well as another email once your LLC is approved. Online filings are typically processed promptly, allowing for quicker approval of your LLC. 

For detailed online filing instructions, refer to the SCC's guide.

Option 2: Mail-in filing

If you prefer to file by mail, download and complete the Articles of Organization (Form LLC-1011). Prepare a check or money order for the $100 filing fee, payable to "State Corporation Commission." Mail the completed form and payment to:

State Corporation Commission

Clerk's Office

P.O. Box 1197

Richmond, VA 23218-1197

You can also hand deliver it to 1300 East Main Street, Tyler Building, 1st Floor, Richmond, VA 23219.

You will receive an acceptance letter from the SCC upon approval. Mail filings may take longer to process than online submissions.

How long does it take for an LLC to get approved in Virginia?

It will typically take 2 to 5 business days to get your LLC approved if you submit a request online. You can opt to pay an expedited registration fee online at the CIS to get approval by the next business day. Registration requests by mail can take up to two weeks, and in-personal filing can take up to 5-10 business days.

What to include in your LLC's Articles of Organization form

When completing the Articles of Organization, you'll need to provide:

• Your LLC name
• The principal office address (the primary location where your business operates)
• Your registered agent's name, address, and their qualifications
• Signature

If you are not a Virginia resident

To conduct business in Virginia as a non-resident and establish a foreign (out-of-state) LLC, follow these steps:

1. Designate a resident agent: Your registered agent must be a state resident or a business entity authorized to operate in Virginia, have a physical street address (no P.O. boxes), and be available during normal business hours to receive legal documents for your LLC.
2. Ensure compliance with naming requirements: Your LLC's name must be distinguishable from existing entities registered in Virginia. If a conflict exists, you may need to register under an assumed name. 
3. Obtain a certified copy of organizational documents: Provide a certified copy of your LLC's Articles of Organization (and any amendments) from the state or jurisdiction where your LLC was originally formed. This copy must be authenticated by the appropriate official and dated within the last 12 months.
4. Complete the application for a Certificate of Registration: Fill out the "Application for a Certificate of Registration to Transact Business in Virginia as a Foreign Limited Liability Company" (Form LLC1052). 
5. File the application with applicable filing fee: Submit your completed application and accompanying documents to SCC. While online filing is recommended for efficiency, you can also file by mail. The filing fee for registering a foreign LLC in Virginia is $100.

Visit the SCC website for more information about foreign business registration filing. 

Step 4: Get an Employer Identification Number (EIN)

You’ll likely need an Employer Identification Number (EIN) from the Internal Revenue Service to form an LLC in Virginia. An EIN is a nine-digit number that identifies a business for tax purposes, similar to a Social Security Number for your company.

According to the IRS, you need an EIN if any of the following apply:

1. You have employees.
2. Your business operates as a corporation or partnership.
3. You file employment, excise, or alcohol, tobacco, and firearms tax returns.
4. You withhold taxes on income, other than wages, paid to a non-resident alien.
5. You have a Keogh plan (a tax-deferred pension plan).
6. You are involved with certain types of organizations, including trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers' cooperatives, or plan administrators.

Single-member LLC considerations

If you are a single-member LLC, you may not be required to obtain an EIN. However, getting one is still a smart idea, as your business needs might change over time, and obtaining an EIN is free.

An EIN becomes mandatory if your LLC elects to be taxed as a corporation, hires employees, or files excise or employment tax returns.

Having an EIN also simplifies opening a business bank account and protects your personal Social Security Number, reducing the risk of identity theft.

Requesting an EIN

You can request an EIN by mail or phone, but the fastest method is completing the process online on the IRS website. After obtaining an EIN, use accounting software to track business expenses and ensure your company’s finances remain separate from your personal finances. 

Step 5: Ongoing compliance and required filings 

Getting your LLC certificate is the first step of the business compliance journey. To continue doing business, you must adhere to the state and federal laws and regulations to keep your LLC compliant. Here are some key obligations:

• Annual report 
• Filing requirement: All LLCs, both foreign and domestic, must submit an Annual Report to the SCC. It is due by the last business day of your company's incorporation month each year. If that date falls on a weekend or holiday, it must be submitted by the preceding business day. For example, if your corporation was incorporated on April 10, the report is due by April 30 starting the following year.
• Purpose: To confirm your LLC's good standing and business information.
• Filing method: File online via the SCC CIS.
• Fees: There is no fee.
• Annual registration fee
• Filing requirement: All Virginia and foreign (out-of-state) LLCs must pay an annual registration fee. It is due by the last day of the LLC’s formation month each year.
• Purpose: To maintain good standing with the Virginia State Corporation Commission (SCC). This fee ensures your LLC remains legally authorized to conduct business in the state.
• Filing method: File online via the SCC CIS.
• Fee: $50
• Beneficial Ownership Information Report
• Filing Requirement: Submit a Beneficial Ownership Information Report to the U.S. Department of the Treasury within 30 days of forming your LLC.
• Purpose: This report helps prevent money laundering and other financial crimes by identifying the true owners of the LLC.
• Who needs to file: All LLCs formed in 2024 or later are required to file.
• How to file: File the report online through the U.S. Treasury Financial Crimes Enforcement Network website.
• Fees: There is no filing fee.

Business licenses and permits

• Requirement: Depending on your industry and location, specific licenses or permits may be necessary. Most businesses in Virginia need a local business license from the city or county where they operate. Certain industries require state-level licensing or permits.
• Examples:
• Professional services (e.g., insurance, medical, financial)
• Food and beverage establishments
• Contractors and tradesmen
• Automobile retailers
• Verification: Consult the Virginia Department of Professional and Occupational Regulation (DPOR) to determine specific business licensing requirements.

State tax registration

• Requirement: If your LLC will collect state taxes, such as sales tax, you must register with the Virginia Department of Taxation.
• Tax determination: Use the Virginia Tax website to determine which taxes apply to your business.
• Registration methods: Register online through the Virginia Department of Taxation's Business Registration portal.
• Purchase insurance
• Requirement: Depending on the type of business you operate, you may need specific insurance coverage, such as:
• Commercial auto insurance
• Liability insurance
• Workers’ compensation insurance
• Information: Check the Commercial Insurance Consumer’s Guide.
• Certificate of Good Standing (optional)
• Requirement: While not legally required, a Certificate of Good Standing can be beneficial.
• Purpose: It verifies that your LLC is in compliance with state regulations and is authorized to conduct business in Virginia.
• Why you may need it:
• To open a business bank account
• To obtain certain business licenses
• To apply for credit card processing
• How to Obtain It: Apply online through the Virginia State Corporation Commission's Clerk's Information System (CIS).
• Fee: It costs $6 to submit your application.

Types of LLCs to consider in Virginia 

When establishing an LLC in Virginia, it's important to understand the different types available to determine which best suits your business needs.

Single-member LLC

A single-member LLC is owned by one individual or entity, offering liability protection while allowing for simplified management and taxation. A single-member LLC can be treated as a disregarded entity for federal income tax purposes, meaning the business activities are reported on the owner's personal tax return.

Multi-member LLC

A multi-member LLC consists of two or more members sharing ownership. This structure provides flexibility in management and profit distribution among members. Multi-member LLCs are typically treated as partnerships for tax purposes unless they elect to be taxed as a corporation.

Professional LLC (PLLC)

Designed for licensed professionals such as doctors, lawyers, or accountants, a PLLC allows individuals to offer professional services under an LLC structure. In Virginia, certain licensed professions may be required to form a professional entity. It's advisable to consult with the appropriate Virginia licensing boards to determine eligibility and specific requirements.

Series LLC

Virginia permits the formation of Series LLCs, which allow a single LLC to have multiple series or cells, each with its own assets, liabilities, and members. This structure can be beneficial for businesses seeking to segregate assets or operations within one overarching entity.

Manager-managed LLC

In a manager-managed LLC, members appoint one or more managers to handle the daily operations, allowing non-managing members to act as passive investors.

Member-managed LLC

A member-managed LLC involves all members actively participating in the management and decision-making processes of the company. This is the default management structure for LLCs in Virginia unless otherwise specified in the Articles of Organization.

Costs of setting up an LLC in Virginia

Setting up a limited liability company in Virginia involves several fees:

• A $100 one-time fee to file your Articles of Organization
• Registered agent service fees, if applicable, which typically start at $50 a year
• An annual registration fee of $50

Other costs you may have to cover include late fees if you file any required paperwork after its due date and license or permit fees if your business operates in a regulated industry.

Open a Virginia LLC business bank account

Every LLC owner should open a business bank account to manage revenue, pay vendors, and keep finances organized. One of the key benefits of an LLC is protecting personal assets, but this protection can be compromised if business and personal funds are mixed. A separate bank account ensures financial separation, helping maintain liability protection and keeping your business compliant.

What you'll need 

When opening a business bank account, you’ll typically need:

• Your EIN 
• Articles of Organization, typically a certified copy which can be ordered online through the CIS system
• (Possibly) an operating agreement and Certificate of Standing
• Personal identification

Out-of-state residents should consider choosing a bank with a presence in the state.

After opening your bank account, use QuickBooks accounting software to track and manage your finances.

LLC Taxes in Virginia 

Virginia LLCs are subject to specific tax obligations at both the federal and state levels.

Federal tax classification

• Single-member LLCs: Automatically treated as disregarded entities, with income and expenses reported on the owner's personal tax return.
• Multi-member LLCs: Default to partnership taxation, requiring the filing of Form 1065 with the IRS.
• Election as a corporation: LLCs can opt to be taxed as a C corporation or S corporation by filing the appropriate forms with the IRS.

State income tax

LLCs that are treated as pass-through entities for federal tax purposes do not pay state income tax at the entity level. Instead, income passes through to members who report and pay state income tax on their personal returns. However, LLCs that elect to be taxed as corporations are subject to Virginia's corporate income tax.

Pass-Through Entity Tax (PTET)

Virginia offers an elective Pass-Through Entity Tax (PTET) for LLCs classified as pass-through entities. This allows the entity to pay tax at the entity level, potentially providing federal tax benefits to members. LLCs opting for PTET must file Form 502PTET annually.

Corporate income tax

Your LLC will be subject to the corporate income tax if you elect to be taxed as a corporation. Once this election is made, your business is treated as a corporation for both federal and state tax purposes, and you must file a corporate income tax return in Virginia. The corporate income tax rate is a flat rate of 6%.

Sales and use tax

LLCs selling tangible goods or certain services in Virginia may be required to collect sales tax from customers. If an LLC purchases items for business use without paying sales tax, it may owe use tax. Registration for sales and use tax can be completed through the Virginia Department of Taxation.

Employment taxes

LLCs with employees must handle state employer taxes, including withholding Virginia income tax from employee wages and paying unemployment insurance tax. Employers need to register with both the Virginia Department of Taxation and the Virginia Employment Commission.

LLC owners should consult with a tax professional to ensure compliance with all federal, state, and local tax obligations.

Virginia-related resources

• Virginia Department of Taxation: Oversees tax administration in Virginia, including business tax registration, sales tax collection, and compliance with state tax laws.
• Virginia Department of Professional and Occupational Regulation (DPOR): Regulates and licenses individuals and businesses in various professional and occupational fields, ensuring compliance with state standards.
• Virginia Small Business Support Center (SBSC): Provides resources, guidance, and support to entrepreneurs and small businesses, helping them navigate licensing, funding, and regulatory requirements.
• Virginia State Corporation Commission (SCC): Regulates business entities, financial institutions, insurance, and public utilities while also managing business registrations, corporate filings, and compliance.
• Virginia Department of Small Business and Supplier Diversity (SBSD): The SBSD provides resources for women- and minority-owned small businesses in Virginia. They offer certification programs, technical assistance, and training, along with access to state contracting opportunities.
• 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.

Federal-related resources 

• Small Business Administration (SBA): The SBA supports small businesses through various loan programs, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.
• Internal Revenue Service (IRS): The IRS provides essential information for LLCs, including tax classifications, employer identification numbers (EINs), and filing requirements. Its Small Business and Self-Employed Tax Center offers guidance on tax obligations specific to LLCs.
• U.S. Patent and Trademark Office (USPTO): For businesses looking to protect their intellectual property, the USPTO provides resources on how to apply for patents and register trademarks, which can be essential for safeguarding your unique products or services.
• U.S. Department of Labor (DOL): The DOL's website offers information on federal labor laws, workplace safety regulations, and employee benefits that LLC owners need to consider when hiring staff.

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 not 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.