What to know before you start an LLC in Virginia

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Starting your own business in Virginia is an exciting step, and forming a limited liability company (LLC) is one of the smartest ways to protect yourself and build credibility. An LLC gives you flexibility, shields your personal assets, and sets the stage for growth, all while keeping business management straightforward. If you’re ready to take the leap, this guide will walk you through how to start an LLC in Virginia, from the initial paperwork to the ongoing requirements.

How to start an LLC in Virginia in 5 steps

Starting an LLC in Virginia is a simple process that usually takes just a few business days if filed online, or up to a couple of weeks if filed by mail. Follow the steps below to launch your Virginia LLC.

If you’re still weighing your options, explore different LLC types or check out our full guide on how to start a business.

1. Choose a name for your LLC

The very first step in forming your LLC is choosing a name that fits your business and meets Virginia’s legal requirements. Your LLC name must:

• Be unique and distinguishable from other businesses registered in Virginia.
• Include “Limited Liability Company,” “LLC,” or “L.L.C.” at the end.

You can search for available names using the Virginia State Corporation Commission’s (SCC) business entity search tool. This ensures your name is free to use before you file. Take your time choosing your LLC name; it’s the first impression most customers will have of your business. For tips on brainstorming and checking name availability, read this article on choosing a name for your LLC. 

Get your business domain name

Once you’ve settled on your LLC’s legal name, it’s a good idea to secure the matching domain name. This protects your brand online and makes it easier for customers to find you. You can register a domain name with GoDaddy to lock it in before your LLC filing is even approved. Snagging your domain early helps you secure consistent branding across your website, email, and social channels.

Get a DBA

If you’d like to operate under a name that’s different from your official LLC name, you can register a DBA (doing business as). A DBA allows you to market your business under a separate brand while your LLC remains the legal entity. You can file for a DBA (called a fictitious name in Virginia) using the SCC Clerk Information System for $10. Learn more about what is a DBA and how it works for LLCs.

2. Appoint a registered agent

Every LLC in Virginia must designate a registered agent. This person or company is responsible for receiving important legal and tax documents on your behalf. A registered agent must:

• Have a physical street address in Virginia (P.O. boxes don’t qualify).
• Be available during normal business hours.

You can serve as your own registered agent, but many business owners hire a professional service for privacy and convenience. Appointing a professional can also help ensure important documents don’t slip through the cracks. Find more information on what is a registered agent and whether you should hire a service here.

3. File Articles of Organization

This is the step that officially creates your LLC. In Virginia, you file your Articles of Organization with the SCC either online or by mail. The form will ask for:

• Your LLC’s name and principal office address.
• Your registered agent’s name and address.
• Whether the LLC will be managed by members or managers.

The filing fee is $100, and online submissions are typically processed within a few business days. Paper filings take longer, but both routes will result in your LLC being legally recognized by the state. Once approved, you’ll receive confirmation from the SCC, and your business is officially ready to operate.

4. Create an operating agreement

An operating agreement is a rulebook for your LLC that prevents conflicts between members. Virginia doesn’t legally require LLCs to create, maintain, or file an operating agreement, but having one on file can help mitigate future issues. Your agreement should include:

• Ownership percentages of each member
• Roles and responsibilities
• Profit and loss distribution
• Voting rights and decision-making rules
• Meeting procedures
• Steps for adding or removing members
• Dissolution terms

Even if you’re running a single-member LLC, creating an operating agreement can establish clear rules for how your business runs and provide extra legal protection if disputes or questions ever arise.

5. Get an EIN

An Employer Identification Number (EIN) is issued by the IRS and works like a Social Security number for your business. You’ll need an EIN to open a business bank account, hire employees, and file federal taxes. Having an EIN also separates your personal and business finances, which is crucial for protecting your liability and keeping your records organized. You can apply for one by mail or online through the IRS website.

How long does it take to get an EIN?

When you apply online, you get your EIN instantly. Applications sent by mail can take up to four weeks. If you’re eager to start banking and hiring under your business name, applying online is the best option.

How much does an EIN cost?

EINs are completely free. There are no application, renewal, or processing fees. Beware of third-party services that try to charge you for an EIN—always go directly through the IRS to avoid unnecessary costs.

How much does it cost to start and run an LLC in Virginia?

Starting an LLC in Virginia comes with a few up-front filing fees and ongoing costs you’ll want to budget for. On average, most business owners spend around $150–$350 to establish their LLC, plus another $50–$300 each year to maintain it. Keep in mind that you may need to pay for additional business licenses and permits, depending on your industry and municipality. 

What happens after your LLC is up and running

Before you open your doors (digital or physical), there are a few more steps you need to take to ensure compliance and set yourself up for long-term success.

Open a business bank account

Separating your business and personal finances is one of the smartest moves you can make as an LLC owner. A business bank account helps protect your personal assets, simplifies accounting, and builds credibility with customers and vendors. To open one, you’ll typically need:

• A copy of your LLC’s Articles of Organization
• Your LLC’s operating agreement (if you have one)
• Your EIN from the IRS
• A valid government-issued photo ID

Most banks also require a minimum opening deposit, which varies depending on the institution.

File for permits and required business licenses

Depending on your industry and location, your LLC may need additional permits or licenses to operate legally. For example:

• Restaurants may need a food service permit.
• Contractors often need state or local licenses.
• Retail businesses may need a sales tax permit.

To find out what applies to you, visit the Virginia Department of Professional and Occupational Regulation (DPOR) and your local city or county government office websites. 

Annual Registration fee

Virginia requires all LLCs to pay an annual registration fee of $50 to remain in good standing. This fee is due each year on the anniversary of your LLC’s formation. Missing this payment can lead to late fees or even administrative dissolution of your business, so it’s important to mark your calendar and file on time.

Things to know about Virginia LLCs

The state of Virginia has a few additional requirements for LLCs that you should understand to keep your business compliant.

File taxes for a Virginia LLC

By default, LLCs in Virginia are considered pass-through entities. This means the LLC itself doesn’t pay income tax; profits and losses pass through to the members, who report them on their personal state and federal tax returns. Here’s how it typically works:

• State income tax: Virginia has a progressive tax rate ranging from 2% to 5.75%. Each member pays taxes on their share of the LLC’s earnings.
• Self-employment taxes: Members who actively work in the LLC must also pay federal self-employment taxes (Social Security and Medicare).
• Sales tax: If your business sells taxable goods or services, you’ll need to register for a sales tax permit and collect the current Virginia sales tax rate.
• Other business taxes: Depending on your industry, you may also need to file excise taxes or employment-related taxes.

If you’re filing business taxes for your LLC for the first time, it’s a good idea to work with an accountant or CPA to make sure everything is filed correctly.

Meet Virginia LLC employer requirements (if hiring employees)

If your LLC has employees, you must:

• Register with the Virginia Employment Commission to pay unemployment taxes.
• Withhold state income tax from employee wages and submit it to the Virginia Department of Taxation.
• Carry workers’ compensation insurance if you have more than two employees.
• Comply with federal employment laws, such as verifying work eligibility with Form I-9 and adhering to wage and labor standards.

Obtain a certificate of fact of existence

A certificate of fact of existence (sometimes called a certificate of good standing) is issued by the Virginia State Corporation Commission. This document verifies that your LLC is legally registered, up-to-date with filings, and authorized to do business in Virginia. You may need this certificate if you:

• Apply for business financing or open a line of credit.
• Register your LLC in another state.
• Enter into contracts with larger companies or government agencies.

You can request the certificate online through the SCC’s Clerk’s Information System for a small fee (usually $6-$10).

Start your Virginia LLC journey today

Starting an LLC in Virginia is a big step toward building the business you’ve been dreaming about. From choosing the right name and filing paperwork to keeping up with annual requirements, each step gives you more credibility and protection as an entrepreneur.

The process may seem overwhelming, but you don’t have to tackle it alone. With GoDaddy Airo, you can simplify the LLC setup process. Once your paperwork is in place, GoDaddy has everything you need to bring your business to life, from our logo maker to our website builder.

FAQ

How much does it cost to start an LLC in Virginia?

The cost to start an LLC in Virginia typically ranges between $150 and $350. This includes $100 for filing the Articles of Organization with the State Corporation Commission, a $50 annual registration fee, and operational costs like hiring a registered agent service.

How do I set up an LLC in Virginia?

To set up an LLC in Virginia, you’ll need to:

1. Choose and register a unique business name.
2. Appoint a registered agent with a physical Virginia address.
3. File your Articles of Organization with the Virginia SCC and pay the $100 fee.
4. Create an operating agreement to outline ownership and management details (optional).
5. Apply for an Employer Identification Number (EIN) from the IRS.

From there, you can open a business bank account, check for licenses or permits, and start building your online presence.

What are the benefits of registering a Virginia LLC?

Registering a Virginia LLC offers several advantages:

• Limited liability protection: Keeps your personal assets separate from your business debts and obligations.
• Flexible management structure: Choose between member-managed or manager-managed operations.
• Pass-through taxation: Profits and losses pass through to members’ personal tax returns, avoiding corporate double taxation.
• Credibility: Establishes your business as a legitimate entity, which can help with securing financing, contracts, or new customers.
• Scalability: An LLC structure makes it easier to grow your business, add members, or adjust roles as your company expands.