How to set up an LLC in virginia [New Research]

Last updated : Aug 19, 2022
Written by : Boris Skirvin
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How to set up an LLC in virginia

How much does an LLC cost in Virginia?

You can either file your articles online for the quickest processing, or mail-in Form LLC-1011 to the Virginia SCC. The filing fee is $100. The articles of organization form for Virginia LLCs (shown below) is pretty brief and includes the following: Business name and address.

How long does it take to establish an LLC in Virginia?

Virginia LLC Approval Times Mail filings: In total, mail filing approvals for Virginia LLCs take 2 weeks. This accounts for the 2-3 business day processing time, plus the time your documents are in the mail. Online filings: In total, online filing approvals for Virginia LLCs take 2-3 business days.

Do LLC pay taxes in Virginia?

S Corporations, Partnerships, and Limited Liability Companies. Every pass-through entity (PTE) that does business in Virginia or receives income from Virginia sources must file an annual Virginia income tax return on Form 502.

Does an LLC need a business license in Virginia?

Though Virginia does not require all businesses to obtain a business license, many cities and counties require all businesses to have a general business license. LLCs are a type of legal entity and will still be required to obtain any appropriate business licensing depending on the type of work conducted.

What are the benefits of an LLC?

  • Limited Personal Liability.
  • Less Paperwork.
  • Tax Advantages of an LLC.
  • Ownership Flexibility.
  • Management Flexibility.
  • Flexible Profit Distributions.

What should I name my LLC?

  • Make It Legal. The most important thing when you're choosing an LLC name is to make sure it's legal.
  • Make It Memorable. You want your LLC name to be something people can remember.
  • Make It Meaningful.
  • Make It Original.
  • Make It Distinctive.
  • Make It Domain Name Ready.
  • Make It Social Media Friendly.

Can I be my own registered agent in Virginia?

Can I be my own registered agent? Yes. Registered agents are required to meet qualification requirements listed in the previous question and provide a Virginia registered office address.

How do I start a small business in Virginia?

  1. Write a business plan.
  2. Choose a business structure.
  3. Name and register your business.
  4. Obtain your EIN, tax information and licenses.
  5. Obtain business insurance.
  6. Open a business bank account and get a business credit card.
  7. Secure startup funding.
  8. Market your business.

How much is a business license in VA?

The cost of the business license is based upon your estimate of total gross receipts from the day the business opens to December 31 of the same year. If the estimate is less than $100,000, the license will cost $50.00 which is the minimum tax.

Is Virginia a good state to form an LLC?

Virginia is a good state for LLCs for a few reasons, including low filing costs, ease of reserving a business name, and no business license requirements for starting an LLC. We'll look more closely at these benefits throughout this article.

How often should LLC file taxes?

Fiscal year LLCs file taxes on the 15th day of the fourth month after the year ends. LLCs electing S Corporation status file taxes on March 15. Because a single-member LLC does not exist separately from its owner, the LLC must use the same tax year as the owner.

How do I start a small business from home?

  1. Come up with your business idea.
  2. Decide what you're going to sell.
  3. Write a business plan.
  4. Decide on your business's legal structure.
  5. Apply for your EIN.
  6. Set up a business bank account.
  7. Look into insurance.
  8. Set up a home office.

How do I get an EIN number in Virginia?

Apply for a Virginia Tax ID (EIN) Number. To obtain your Tax ID (EIN) in Virginia start by choosing the legal structure of the entity you wish to get a Tax ID (EIN) for. Once you have submitted your application your EIN will be delivered to you via e-mail.

How can I start my own small business?

  1. Conduct market research. Market research will tell you if there's an opportunity to turn your idea into a successful business.
  2. Write your business plan.
  3. Fund your business.
  4. Pick your business location.
  5. Choose a business structure.
  6. Choose your business name.
  7. Register your business.
  8. Get federal and state tax IDs.

What are 3 disadvantages of an LLC?

  • Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee.
  • Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.

How can an LLC avoid taxes?

An LLC can help you avoid double taxation unless you structure the entity as a corporation for tax purposes. Business expenses. LLC members may take tax deductions for legitimate business expenses, including the cost of forming the LLC, on their personal returns.

What does LLC mean for dummies?

An LLC, or limited liability company, is a U.S. business structure that combines the simplicity, flexibility and tax advantages of a partnership with the personal liability protection of a corporation. Owners of LLCs are called members.

Can I write off my car with an LLC?

The Internal Revenue Service identifies taxpayers who qualify to claim a business vehicle write off as: Self-employed individuals. Sole proprietors and owners of limited liability companies (LLCs) with a tax classification that allows pass-through income on Tax Form 1040 qualify for the write off.

What are the 3 types of LLC?

  • Single-member LLC for the sole-proprietorship (solo entrepreneur)
  • Multi-member LLC (member-managed LLC or manager-member LLC)
  • Domestic LLC and Foreign LLC.
  • Series LLC.
  • L3C Company (low-profit LLC)
  • Anonymous LLC.
  • Restricted LLC.
  • PLLC and LLC.

Should I name my LLC after myself?

Sometimes it makes sense to name your LLC after yourself if you want to grow your personal brand, but in some cases using your personal name can limit your business' growth or even confuse customers.

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How to set up an LLC in virginia

Comment by Chadwick Sultzer

are you wondering how to start an llc in virginia today you will learn about the most common ways to start your business including the correct forms you'll need how to register your llc critical naming requirements and all other vital tips and tricks then as a bonus later in the video i will reveal a trustworthy registered agent who will help set up your llc for free so make sure to stick with me until the end the state of virginia like other states has several specific llc requirements there are three main ways you can start an llc in virginia first is the diy or do-it-yourself process where you mostly depend on virginia state's website the second way is hiring a professional service that practically offers more efficiency and security in the process of creating your llc while the third one is hiring an attorney we will skip the attorney hiring portion because that's expensive and most business owners won't need that service first let's take a look at the steps required for starting an llc on your own step 1 choose a name for your llc under virginia law an llc name must contain the words limited liability company or limited company or the abbreviations llc lc llc or l.c your llc's name must be distinguishable from the names of other business entities already on file with the virginia state corporations commission office of the clerk names may be checked for availability at the virginia business name database you may reserve a name for 120 days by filing an application for reservation or for renewal of reservation of a business entity name scc 631 with the commonwealth of virginia state corporation commission the reservation must be filed by mail the filing fee is ten dollars step two virginia requires llc to have a registered agent every virginia llc must have an agent for the service of process in the state this is an individual or business entity that agrees to accept legal papers on the llc's behalf if it is sued a registered agent may be an individual who resides in virginia or a domestic or foreign business entity authorized to do business in virginia the registered agent must have a physical street address in virginia step 3 filing the virginia llc articles of organization a virginia llc is created by filing articles of organization form llc 1011 with the virginia state corporations commission the articles must include the llc's name the name and address of the llc's registered agent the llc's initial principal office address and the signatures of the llc's organizers the articles may be filed online at the virginia new entity formation web page or by mail the filing fee is one hundred dollars for both domestic llc's and foreign llc's step four prepare an operating agreement an llc operating agreement is not required in virginia but is highly advisable this is an internal document that establishes how your llc will be run it sets out the rights and responsibilities of the members and managers including how the llc will be managed it can also help preserve your limited liability by showing that your llc is truly a separate business entity in the absence of an operating agreement state llc law will govern how your llc operates if an operating agreement is created it need not be filed with the articles of organization step 5 pay annual registration fees all virginia llc's and foreign llc's authorized to do business in the state must pay a fifty dollar annual registration fee the fee is due each year on or before the last day of the month in which your llc was created the virginia corporations commission will mail a notice of the assessment to the llc's registered agent at the registered office address the commission must receive the llc's annual registration fee payment on or before the due date stated in the notice of assessment or a 25 penalty will be imposed annual registration fees may be paid online at the corporation's commission scc e-file webpage or by postal mail step 6 obtain an ein an ein or employer identification number is a federal tax id issued by the irs your ein is used by them to readily identify your firm and tax filings all virginia firms pay a business privilege tax and the state requires you to have an ein to file you may also be required to provide your ein when opening a bank account or applying for municipal permits or licenses obtaining an ein is a slightly longer process compared to their previous steps i'm sure you know anything to do with the irs is confusing first you have to have complete knowledge of your llc such as your company information managing member information business address business information company details and even critical information regarding vehicular assets and federal excise taxes this is another reason why getting a professional registered agent is way more convenient as they can do this for you as part of their service now let's talk about the second option to form an llc and that is hiring a professional formation service professional formation services do all the steps you should be doing on your own from filing necessary forms to acting as your registered agent you usually have to allocate a specific budget for this option as i already mentioned earlier inkfile is one of the best companies out there to help you form your llc you can click on the link in the description to get access to this deal inc file is one of a kind as it offers a free package with services such as preparing and filing your articles of organization well you still have to pay two hundred and thirty seven dollars for the state fees which you would have to do anyway if you chose the diy option but looking at the bigger picture all other companies will still charge their service fee on top of state filing fees inc file does not collect this fee this plan already includes a free registered agent for your first year of subscription and 119 dollars annually moving forward if you decide to continue the service after the first year inc files next packages are the gold and platinum packages which both have package fees already on top of the 237 dollar state fee each package has its own set of services which are all worthy of the subscription you are paying for the gold package offers you the benefits of filing reports and taxes for your llc every year usa llcs are required to file a state annual report this report is essentially an information update of your file so that the state knows who is now in charge and how to contact your company usa llcs are also required to file state tax returns to make matters even more complicated your annual report and business privilege tax share a document and are due at the same time each year with the inc files gold package you won't have to scribble notes of these reports because ink file will handle the whole process for you your platinum package also has these services in the bag with the unique addition of expedited filing getting a domain name and a business email which essentially increases your llc's credibility inc file also has an exclusive partnership with bank of america so you can easily open an eligible checking account for your business yes it is a must for y

Thanks for your comment Chadwick Sultzer, have a nice day.
- Boris Skirvin, Staff Member

Comment by Winnie

hey my name is eric in today's video we're talking about how to form or create an llc in virginia so in this video what i'm going to do is i'm going to walk you through three different ways that you can do this the first way is actually using the virginia state website and it's kind of like a diy route but going through that official website the second method is you can use an attorney but i'm going to show you how you can vet some attorneys and also be able to filter it down so that you can get attorneys that focus on llcs but also offer free consultations on top of it and then the third route i'm gonna show you some pre-online tools that you can also use as well some of the key takeaways for this video is we will be discussing what an llc actually does because sometimes there's some misinformation on that and some really important things about an llc is understanding what piercing the corporate veil means if you're not familiar with that term you've never heard that term before you're definitely going to want to stay on this video because we're going to talk about how that relates to your business finances and also if you have a registered agent set up i'm going to explain what all this means for you as we get into this video the very first thing i want to do though is i want to share a resource with you which just comes from inkfile which is an online tool that you can register an llc through but they have a learning center here with a ton of helpful resources and one of the things that i find really helpful is the business checklist so you'll find it right here start a business checklist i know from starting my own business that it's very overwhelming you have so many things that you're thinking about there's so many things to overlook well this is a great resource and that it'll walk you through with really simple drop down boxes like this that kind of give you a blurb on each section and each step that you need to consider as you're going through your journey now this is a good opportunity to mention that every resource mentioned in this video is going to be in the description of this video if you're on mobile you may have to click a little down arrow to see it but if you're on desktop you'll just have to click the show more button so that you can see all the resources mentioned from this video so let's start off with the irs website so they have some resources on limited liability companies this is important because if you are running a business there's a good chance that you're going to need an ein numbered an employee identification number this article here will let you know if you do need one and the reason i mention this now is that a lot of services are going to do this for you but they're going to do it at an upcharge this is something that you can do yourself it is a little bit of a pain in the butt because you're going through the irs but you're going to need an ein number most likely so i wanted to give you this resource and again it'll be in the description below now the first method for setting up an llc in virginia is to go directly through the state website so what we're looking at right here is virginia limited liability companies and this is showing us all of the possible forms that you could possibly have along with what the fee is for filing that form so what you're going to be looking at is the articles of organization of a virginia limited liability company and it's a hundred dollar fee for filing that with the state you'll find that about a hundred bucks is really in the middle um every state in the u.s for the most part charges the fee for filing there is no way to get around this so if you go directly through the state you're gonna pay a hundred dollars if you go through an attorney there's gonna be a hundred dollar filing fee and if you go online through an online tool there's gonna be a hundred dollar filing fee so let's start off with the virginia website so and what you can see here is new business resources there's a lot of different places you can go on here one of the first i want to show you is all the forms and fees and again i'll have this link in the description below so as you open this up what you do is you go to virginia limited liability companies and here you'll be able to find the forms that you're looking for and specifically articles of organization of a virginia limited liability company now you should know that it's a hundred dollars to file these you're not going to get around that fee in any way possible if you go directly through the virginia website you're gonna pay a hundred dollar filing fee if you go through an attorney there's gonna be a hundred dollar filing fee that they may lump inside of their fee uh and then also if you use a free online tool hundred dollar filing fee so if you are creating a new business what you can do is you can click here and then what that'll do is it gives you a few different options on how you can create the new business uh probably the easiest way is to register an account by clicking this green button and then you can go through their online registration process now a lot of times these state websites the thing that i don't like is they don't do a great job of explaining all of the aspects of what you're signing up for and what's important so for example this is actually the form that i mentioned earlier for your articles of organization like i said there's a hundred dollar filing fee now if you go down to article two registered agent it starts to talk about what a registered agent is where the registered office is but it doesn't really get into the details so this time i think it would be a good time to explain exactly what an llc does because i want to get into piercing the corporate bail and registered agents so some people think that they're going to set up an llc for some sort of tax advantage or tax purpose that's not why you set it up it is for limiting your liability and specifically what it does is it creates a division between your business assets and your personal assets so in the unfortunate case if you were to get sued by somebody what would happen is if you have a legit llc and there's no cracks in your llc they're only going to be able to go after your business assets and not your personal home your personal car your personal bank accounts but where there's an issue with analysis is if it's not set up correctly or not maintained properly what it's called is piercing the corporate veil that's what the attorney suing you is going to try to do they're going to try to find a crack in your llc and pierce the corporate veil and one of the common ways that this is done is through the registered agent so what a registered agent is is it's a third party that is always required when you're setting up an llc and what they do is they accept important legal documents from the state and federal level they make sure that you're processing any notices especially if you're being sued by somebody they do official federal government correspondence information notifications tax forms and requests for payment and request to complete p

Thanks Winnie your participation is very much appreciated
- Boris Skirvin

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