Starting Your LLC In Virginia: A Step-By-Step Guide

First, you need a name for your business—one that’s not already taken. 

Start by doing a business entity name search on the Secretary of State’s website. Business owners usually use their company’s name to establish their name recognition and brand identity. However, if you plan to only use your official name on legal documents, you can get a “Doing Business As” (DBA) name instead. 

Next, check the Trademark Electronic Search System (TESS) database before filing any paperwork. Usually, running a name search is sufficient, but when you’re forming an LLC, it never hurts to be thorough.

Virginia LLCs require you to include either “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.” as part of your organization’s official name. 

In Virginia, you cannot include anything with the words “bank” or “trust” in your business name unless you’ll be engaged in the banking or trust company business, or if it’s “clear from the context of the remaining words that it will not be engaged in such business.” If you want to include words like “land surveying,” “architecture,” or “engineer,” you must be lawfully engaged in their services. In most cases, you also cannot use “United States,” “national,” “reserve,” or “federal” in your business name. 

We also recommend looking up the URL availability of your business name. If your business name and URL are both available, get them quickly! It’ll make it easier for your audience to find you online. 

Your registered agent is the person who will accept all legal and government correspondence for your LLC. It can be you, another LLC owner or member, or a business entity authorized to conduct business in the state of Virginia. 

Your registered agent must have a physical registered address in Virginia. A P.O. Box won’t cut it. Also, their address will become public record once your organization receives its LLC designation. To protect their privacy, some LLC owners use a business entity as their registered agent.

When you start LLCs in VA, you may need a state business license. While Virginia doesn’t have a blanket requirement, some industries, like real estate and engineering, do. If this is the case, fill out the required forms to obtain whatever licenses you need. Also, check out your city and county websites, because they may have additional licensing or zoning requirements. 

If you're selling taxable goods or services, register with the Virginia Department of Taxation to collect sales tax from your customers. You'll report sales tax to the state monthly or quarterly, depending on your LLC's sales volume. 

Next, you’re ready to create your Articles of Organization. These are the legal documents that outline your LLC’s basic information—and don’t worry, they’re not as scary as they sound.

To prepare your articles of organization, you need the following:

You can mail this document or file it online. The filing fee is $100. 

Before you submit your Articles of Organization to the Secretary of State, check to make sure you’ve filled it out properly. Inaccurate information could cause you a real headache down the road.

An operating agreement outlines how your LLC will conduct business. It includes your rules, regulations, and much more! Think of it as your LLC's constitution. Even though Virginia doesn’t require you to have an operating agreement, nor do you need to file one, we strongly recommend that every business entity has one.

Operating agreements define:

Once you’re drafted your operating agreement, give copies to your entire LLC membership, so they can review and sign them. This can save you a lot of trouble if your company ever has a legal or financial dispute. Without an operating agreement, the courts may be left to decide how to resolve a dispute, which may not be in your or your LLC’s best interest.  

Finally, you need to get an EIN from the IRS. It’s free and easy to do when you fill out this online application. Without an EIN, you won’t be able to hire employees or open a business bank account, so obtaining one is essential.

Does your LLC have employees? If so, you need to report new hires to the Virginia New Hire Reporting Center within 20 days, regardless of whether the employee is seasonal, part-time, or full-time. You must also pay employer taxes and unemployment taxes, and purchase workers compensation insurance.

Identify all your tax-related obligations locally, federally, and statewide. Some cities and counties in Virginia charge an annual “license tax.” This varies based on your LLC’s gross sales for the year. 

Also, don’t forget to submit your $50 annual state registration fee. It’s due each year on the last day of the month you formed your LLC. If you formed your LLC on September 8th, it’ll be due on September 30th each year. You’ll receive a notification from the Virginia State Corporation Commission regarding when it’s due. 

Finally, remain in compliance with the federal government. As an LLC owner in Virginia, you and your partners are required to pay federal self-employment taxes. 

If you have employees, you have to withhold Medicare and Social Security taxes from their paychecks and report them to the government. You’re also required to pay federal unemployment taxes.