How to Start an LLC in Virginia | 2025

For entrepreneurs ready to formalize their business in a state known for its pro-business policies, learning how to start an LLC in Virginia is a strategic first step. To form a limited liability company and grow a business with lean terms, you will want to learn about legal protection, operational flexibility, and tax advantages.

This guide is key for Virginia locals or remote entrepreneurs interested in learning all the essential steps, from filing with the Virginia State Corporation Commission to maintaining your annual registration fee obligations.

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How to Start an LLC in Virginia (Step-by-Step)

To go through a streamlined process of establishing a Virginia LLC in 2025, it’s essential to understand both the legal requirements and the strategic decisions involved.

Step 1: Name Your Limited Liability Company

Your LLC name is more than a label—it’s a legal identifier and brand foundation. Virginia requires your business name to:

• Include a legal designator such as “LLC,” “L.L.C.,” “LC,” “L.C.,” or “Limited Liability Company.”
• Be distinguishable from any existing entity registered with the Virginia State Corporation Commission
• Avoid restricted words (e.g., “bank,” “insurance”) unless authorized by the appropriate agency

To secure your chosen name, search for availability via the VA SCC’s Entity Search Tool.² If you’re not yet ready to form, you can reserve the name for 120 days by filing a reservation form and paying a $10 fee.

Step 2: Appoint a Registered Agent in Virginia

Your registered agent serves as your LLC’s official point of contact for legal documents and state correspondence. This can be any Virginia resident over 18 with a physical street address or a registered business entity authorized to operate in Virginia.

The agent must be available during business hours at a non-P.O. box address. Many businesses use commercial registered agent services to protect privacy and ensure compliance—especially if they operate from out of state or internationally.

Step 3: File Your Articles of Organization

To formally create your Virginia limited liability company, you must file Form LLC-1011—the Articles of Organization—with the Virginia State Corporation Commission.

Required information includes:

• Your LLC’s legal name
• Principal business address
• Registered agent details
• Statement of whether the LLC is member- or manager-managed
• Organizer signature

Filing fee: $100
Submission options: Online via the CIS Portal or by mail³
Processing time: Typically 2–5 business days, with same-day and next-day expedited options available

Once approved, your LLC becomes a legally recognized business entity.

Step 4: Draft an LLC Operating Agreement

Virginia doesn’t require you to submit an LLC operating agreement, but skipping it is a common mistake—especially for multi-member LLCs. This internal document governs your company’s rules, rights, responsibilities, and profit allocations.

Why it matters:

• Clarifies management structure
• Prevents disputes between members
• Reinforces separation of personal and business finances
• Required by many banks when opening a business bank account

Your operating agreement should outline ownership percentages, voting procedures, tax treatment, and protocols for adding or removing members. Even if you're a single-member LLC, having one boosts professionalism and legal protection.

Step 5: Apply for an EIN from the Internal Revenue Service

An Employer Identification Number (EIN) is your federal tax ID—essential for opening accounts, hiring staff, and filing tax returns. Issued by the Internal Revenue Service, the EIN is required even for single-member LLCs if they plan to:

• Hire employees
• Open a business bank account
• Apply for business licenses
• Elect corporate tax treatment

How to apply:

• Free via the IRS EIN application portal (for U.S. residents)⁴
• Non-residents without a Social Security Number must apply by mail or fax

Step 6: Register with the Virginia Department of Taxation

Depending on your business activities, you may need to register with the Virginia Department of Taxation for various tax accounts.

You’ll likely need:

• A sales tax certificate (if selling goods/services subject to state sales tax)
• Employer withholding tax registration (if hiring employees)
• State income tax accounts

Register online via VATAX, and be sure to keep your tax account number handy for business license applications and filings.⁵

Step 7: Submit the Beneficial Ownership Information (BOI) Report

As of 2024, most LLCs are now required to submit a Beneficial Ownership Information (BOI) Report to FinCEN, a federal agency under the U.S. Treasury.

The report includes:

• Details of owners with 25% or more interest or substantial control
• Legal name, address, date of birth, and copy of a government-issued ID

Deadlines:

• LLCs formed in 2024: File within 90 days of formation
• LLCs formed in 2025 and beyond: File within 30 days of formation

The BOI filing is free and available at FinCEN’s BOI portal.⁶ Failure to file may result in civil penalties.

What Are the Business Requirements for a Virginia LLC?

To keep your Virginia LLC compliant and in good standing, you’ll need to:

• Maintain a registered agent
• File your Articles of Organization
• Create an internal LLC operating agreement
• Obtain an EIN from the Internal Revenue Service
• Register for applicable state taxes and obtain a sales tax certificate if needed
• File the BOI report with FinCEN
• Pay your annual registration fee of $50 on time each year

Local business licenses and zoning permits may also be required, depending on your city or county.

What Are the Benefits of Starting an LLC in Virginia?

Virginia offers a compelling combination of affordability, legal protection, and simplicity for LLC formation. Key advantages include:

• Asset Protection: LLC members aren’t personally liable for business debts
• Pass-Through Taxation: Business profits are taxed at the individual level (2%–5.75% in Virginia), avoiding corporate double taxation
• Ease of Compliance: No annual reports—just a flat $50 annual registration fee
• Proximity to federal markets: Particularly beneficial for government contractors or tech startups
• Flexible Management: Choose between member- or manager-managed structures
• Cost-Effective Start: Low filing fees, with optional services as needed

How Much Does It Cost to Start an LLC in Virginia?

Expense	Cost
Articles of Organization Filing	$100
Registered Agent (if outsourced)	$0–$300/year
Name Reservation (optional)	$10
Annual Registration Fee	$50/year
Sales Tax Registration (if needed)	Free
BOI Report Filing	Free
Business Licenses	Vary by locality

Estimated total to start: $100–$400 depending on whether you hire professionals or do everything you can yourself.

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Comparison with Other States

Here’s a brief breakdown of how forming an LLC in Virginia compares to three other states entrepreneurs commonly consider: Texas, Florida, and California

Feature	Virginia	Texas	Florida	California
Filing Fee	$100	$300	$125	$70
Annual Fee / Report	$50 (no annual report)	$0 annual fee + franchise report	$138.75 annual report	$800 franchise tax + $20 report
Privacy	Moderate	Moderate	Moderate	Low (members & managers disclosed)
State Income Tax on LLCs	No (pass-through only)	None	None	Yes (for LLCs treated as corps)
Best For	Regional/local business growth	Asset-heavy businesses, no income tax	Remote-friendly service businesses	Tech/startups needing local presence

While Texas and Florida are ideal for businesses wanting no state income tax, Virginia remains more affordable in terms of maintenance costs and formation simplicity—especially for businesses that physically operate in Virginia.

California, although costly, is unavoidable for founders needing a presence in the Golden State. If you're based in Virginia or plan to serve customers there, forming in Virginia directly is often the smartest financial and legal choice over registering as a foreign LLC later.

FAQs About Virginia LLCs

What Are the Privacy Protections for a Virginia LLC?

Virginia offers moderate privacy. Member names aren’t listed on public filings, but your registered agent’s name and address are. Use a commercial agent for added discretion.

Why Do People Use Virginia for LLC Formation?

There are several reasons:

• Lower startup and maintenance costs
• No annual report burden
• Simple compliance
• Strategic location on the East Coast

Is a Virginia LLC Tax-Free?

No. While your LLC isn’t taxed at the entity level, profits pass through to owners who pay Virginia state income tax (2%–5.75%).¹ Sales tax and employer taxes may also apply.

What Are the Disadvantages of a Virginia LLC?

• Not as anonymous as Wyoming or Delaware
• Requires a Virginia-registered agent
• Some industries need specific local permits

Conclusion

Forming a Virginia LLC is a smart move for entrepreneurs seeking a cost-effective and legally secure way to build their business. It’s possible for both in-state operators and international founders, thanks to Virginia’s flexible system.

By following this guide—from selecting your LLC name to filing your Articles of Organization and staying on top of your annual registration fee—you’ll be well-positioned for compliant growth in the year ahead.

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Sources:

1. Virginia Tax Calculator | Smart Asset
2. VA SCC’s Entity Search Tool | Virginia Government Website
3. CIS Portal | Virginia Government Website
4. IRS EIN application portal | IRS
5. VATAX | Virginia Government Tax Website
6. FinCEN’s BOI portal | Financial Crimes Enforcement Network - US Treasury