How much does an LLC cost in Virginia? (details)
Forming a Virginia LLC entails more than just paying the first filing fee; it doesn't have to be extremely expensive.
We outline all up-front and continuing costs for a Virginia LLC and advise how to successfully cut these out of the budget.
How Much Does It Cost to Start an LLC in Virginia?
There is a $100 filing fee for the Articles of Organization with the State Corporation Commission when forming an LLC in Virginia.
This is important in creating your LLC's legal standing, allowing it to function under Virginia regulations if approved.
Apart from the LLC filing fee mentioned above, additional expenses are associated with establishing a Virginia LLC (Limited Liability Company).
Costs of Forming a Virginia LLC
Forming an LLC includes a one-time state filing fee of $100.
There are also ongoing fees (like a $50 Annual Report fee and potential business license fees), which we discuss below.
LLC Costs in Virginia
| Requirement | Cost |
|---|---|
| LLC Name | $0 |
| Registered Agent | $0 or $125 per year |
| Articles of Organization | $100 |
| Operating Agreement | $0 (free on our site) |
| EIN Number | $0 (free to the IRS) |
| Annual Report | $50 |
| Taxes | varies (filed and/or paid every year) |
The filing fee for a Virginia LLC Articles of Organization is $100
In Virginia, forming an LLC requires paying the State Corporation Commission a $100 filing fee for the Articles of Organization. This paper creates your LLC legally if it is accepted.
After formation, you only need to pay the $100 one-time charge; after that, you won't need to pay any more monthly or yearly fees to keep your Virginia LLC active.
✎ Note:
LLCs represent the predominant business structure in Virginia, chosen for their robust liability protection afforded to owners, making them highly favored among business entities.
The form used to establish an LLC can vary by state; it may be called the Articles of Organization.
In Virginia, it is specifically known as the Articles of Organization. Despite these variations in naming, they all serve the same purpose to create your LLC legally.
Reserving a business name in Virginia entails a fee of $0
The creation of your Virginia LLC Name Reservation is completed simultaneously if you want to file online. An additional $0 filing fee is required for an online name reservation when filing online.
Remember to include the Name Reservation with your application if you want to file by mail.
But before forming your LLC, you have to wait for the Name Reservation to be approved. Even though filing by mail can save you a few bucks, it can take longer to form your LLC.
How much does a DBA cost? ($10)
In Virginia, a DBA is filed with the town clerk rather than the State Corporation Commission. Therefore, the cost of a DBA will vary depending on the town where your LLC is doing business.
✎ Note:
A DBA, also known as a Trade Name, Fictitious Name, Assumed Name, or Fictitious Business Name, refers to the same concept.
★ Tip:
Obtaining a DBA for your LLC is optional and not a requirement.
Virginia Registered Agent Fee ($0 to $125/ annually)
Under Virginia law, every LLC formation requires the appointment of a Registered Agent.
Your Virginia Registered Agent acts as the liaison for legal documents and state notifications on behalf of your LLC, necessitating a physical address within the state and availability during regular business hours.
You can appoint yourself, a trusted associate, or a family member as your Registered Agent without incurring additional expenses.
Alternatively, hiring a Registered Agent service costs between $100 and $300 per year. These services offer additional business support and safeguard your privacy.
Hiring a Registered Agent service is a good idea if:
- You lack a physical address in the state (Virginia law mandates Registered Agents to have an address within the state).
- You prefer to keep your address private (some companies allow you to use their address for confidentiality).
Exclusive Offer!
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LLC Operating Agreement Fee ($0)
A Virginia LLC Operating Agreement functions as a written contract among the LLC's members. It outlines specific details regarding ownership, how the LLC is managed, and the distribution of profits.
Both Single-Member and Multi-Member LLCs should create an Operating Agreement, maintain it within their business records, and provide each member with a copy.
Online services generally charge between $50 to $200 for crafting an LLC Operating Agreement.
LLC EIN Number Fee ($0)
An EIN, also referred to as an Employer Identification Number or FEIN (Federal Employer Identification Number), is essential for handling tax filings, setting up an LLC bank account, and potentially facilitating employee hiring.
While some platforms may charge a fee, you can obtain an EIN for your LLC free of charge directly from the IRS. The process to apply online is simple and typically takes only a few minutes to complete.
Virginia LLC Annual Report Fee ($50/year)
In Virginia, the LLC Annual Report is referred to as the Periodic Report.
The state requires you to keep your LLC's information up to date by filing a Virginia Periodic Report annually.
This keeps your LLC in good standing and compliance with state law so it can continue operating. You simply confirm the information on your Periodic Report, file it with the Virginia State Corporation Commission, and pay the Periodic Report filing fee.
The Virginia LLC Periodic Report is free annually. These costs are required each year for the duration of your LLC's existence.
✎ Note:
Other business entities may file different reports, but LLCs only need to file the Periodic Report each year.
Virginia Business License and Permit Fees
The locations and industry sectors in which your LLC operates in Virginia may require you to apply for additional business licenses or permits. For your LLC's specific operating area, for example, it may be necessary to obtain a city business permit.
Location and industry specifics can affect the cost of these licenses or permits. These costs are usually fair. Local governments such as towns, cities, or counties are responsible for administering some licenses and permits, while the state issues others.
LLC Taxes
Virginia LLC owners face a range of tax obligations, leading to varying annual costs.
Some of the taxes LLC owners pay include:
- Federal taxes
- State income tax
- Local income tax
- Business taxes
- Self-employment taxes
- Sales and use tax
- Payroll tax (if you have employees)
- Property tax (if the LLC owns property)
The Taxes of Your Virginia LLC taxes are affected by your industry and business activities, making it difficult to predict. Every business is different, and the taxes your LLC owes depend on your specific situation.
✎ Note:
Typically, a Single-Member LLC is taxed similarly to a Sole Proprietorship, while a Multi-Member LLC is taxed similarly to a Partnership.
Hiring an Accountant
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings.
The best person to help you determine your small business tax liability in Virginia is a certified accountant.
While accounting costs can vary, you should generally budget $300 for simple tax returns and up to $900 for more complicated filings annually.
Need to save time?
Consider hiring a professional to set up your LLC: Northwest Registered Agent offers LLC formation services starting at $39 plus the state fee.
(Find out why Northwest is the top choice for LLC formation)
✎ Note:
Accounting fees can vary, but in general, expect to pay about $300 a year for basic tax returns and up to $900 for more comprehensive filings. We recommend speaking with a few Virginia accountants to make sure they can help you with all of your local, state, and federal tax needs. For more advice, see our comprehensive guide on how to find an accountant.
Virginia State Corporation Commission
If you're curious about the expenses involved in starting a Virginia LLC, feel free to contact the Virginia State Corporation Commission for detailed information.
Virginia LLC Costs FAQs
How much does it cost to open an LLC in Virginia?
It costs $100 to start a Virginia LLC. This is a one-time filing fee for the LLC Articles of Organization.
Some LLCs may need a business license in Virginia. This depends on your industry and where your LLC is located. The cost of local business permits varies.
How much does an LLC in Virginia cost per year?
All Virginia LLCs need to pay $50 per year for the Annual Report. These state fees are paid to the State Corporation Commission. This is the only state-required Annual Fee. You have to pay this to keep your LLC in good standing.
If you hire a Registered Agent service, you’ll have an annual subscription fee to pay each year. This is usually about $125 per year.
Some LLCs may need a business license in Virginia. This depends on your industry and where your LLC is located. You’ll need to check with your municipality to see if there are any annual renewal fees for the business permit.
Should I hire an LLC formation service?
You aren’t required to hire a professional service company to form your Virginia LLC. You’re allowed to form your LLC yourself if you’d like.
Do I need to hire an attorney to form an LLC?
No, you aren’t required to hire an attorney to form your LLC in Virginia. You’re allowed to form your LLC yourself if you’d like.
However, some people may want to hire an attorney if their LLC has a complex ownership or management structure, has investors, or requires industry-specific documentation.
A business attorney usually charges between $800 and $2,500 to form an LLC.
How do I start an LLC in Virginia?
Here are the steps to starting an LLC in Virginia:
- Choose an LLC business name and make sure it’s available
- Choose who will be your Virginia Registered Agent
- File the Virginia Articles of Organization
- Complete and sign an LLC Operating Agreement
- Get a Tax ID Number (EIN) from the IRS
- Open an LLC bank account
- Check whether you need a business or sales tax license in Virginia
What’s the cheapest way to start an LLC?
You can get an LLC cheaply by filing your formation documents yourself. You’ll also save money by being your Registered Agent and using our free LLC Operating Agreement template.
By forming your LLC yourself, being your Registered Agent, and using our Operating Agreement template, you can save over $400.
Keep in mind, just because a certain state has cheap LLC fees doesn’t mean it’s a good idea to form your LLC there. There are usually disadvantages to forming an LLC out of state. Check out what’s the best state to form an LLC for more information.
How long does it take to get an LLC in Virginia?
How long it takes to get an LLC in Virginia depends on how you file your Articles of Organization.
You can get an LLC in Virginia approved in 2-5 business days if you file online. On the other hand, filing by mail takes about 2-5 business days.
How much does a Virginia business bank account cost?
It varies. Some banks charge monthly fees ($10 to $20 per month), but these can sometimes be avoided by meeting certain requirements. For example, if you make a certain number of direct deposits or maintain a specified minimum balance, then they’ll waive the monthly fees.
And you might be able to find a bank that doesn’t charge any monthly fees.
Before you open your LLC business bank account, we recommend calling and asking if there are ways to avoid the monthly maintenance fees. You can learn more about LLC bank accounts in our guide.
How much is a Foreign LLC in Virginia?
A Foreign LLC is an LLC formed in another state that must register (aka Foreign Qualify) in Virginia. This is because the LLC is doing business in both states.
The Virginia Foreign LLC cost is $100. This is the fee to register an LLC in Virginia after it was formed in another state.
If you form an LLC in Virginia, it is called a “Domestic LLC”. If you formed your LLC in another state, it would be a Foreign LLC once you register it in Virginia.
Is Virginia a good state for an LLC?
Yes, Virginia is a great state to start a business. Virginia doesn’t charge a state business license fee, has quick approval times, and helpful representatives at the State Corporation Commission if you have questions.
However, the most important factors in deciding where to start a business are where you live and where you’re doing business.
Meaning, if you live in or do business in Virginia, then you should start your business in Virginia. While many websites talk about tax rates and the advantages of certain states, none of that applies if it’s not the state where you live and do business. And just because a certain state has cheaper LLC fees doesn’t mean it’s a good idea to form your LLC there.
For example, if you form an LLC in Wyoming but live in and conduct business in Virginia, you’ll also need to register your Wyoming LLC in Virginia (and pay fees). And you’ll end up paying Virginia taxes anyway. This ends up leading to more costs and more headaches with no advantages.
In summary, if you are a Virginia resident, then yes, Virginia is the best state to form an LLC. If you don’t live in and do business in Virginia, then no, Virginia probably isn’t a good state to start an LLC.