The only bookmark you need if you ever want to start a business in Virginia.
There are 681,517 small businesses in Virginia, accounting for 97.7% of the businesses in the state. These businesses employ 1.5 million employees, 46.9% of Virginia’s working population. Five major Virginia companies made the Fortune 100 Best Companies to Work For list: Capital One, Hilton, Navy Federal Credit Union, Mars, and CarMax.
SkyTerra, ThinkGeek, Alpha Industries, ESI International, GridPoint, Touchstone Energy, Accenture, General Dynamics
Virginia is currently said to be entering a ‘golden age’ of entrepreneurialism, especially in the city of Richmond. Business incubators are gaining traction across the state, and local universities have recently seen increased enrollment in entrepreneurship classes. Further, Virginia’s economy is evolving from an agricultural core to a technological and manufacturing one – an excellent atmosphere for founders with innovative ideas. Arlington is also a hub for cutting-edge startups.
There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.
Picking a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that, the better).
Each state has it’s own requirements for registering a business. Now that you’ve chosen a business structure and picked your business name, here are the requirements to register your business in Virginia.
In Virginia, it is a crime to operate with a fictitious business name without filing for a DBA. This could result in a penalty of up to $2,500, up to one year in prison, or both.
Our formation package includes everything you need to get started
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
You can read more about corporate tax laws in Virginia on the Virginia Tax Website.
TIP: We will obtain your EIN for you if you we form your company.
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork b) your EIN c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
TIP: Our business formation service includes a free banking resolution for your use.
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
Tip: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
DBA: There are no additional requirements for DBAs in Virginia.
LLC: Virginia does not require LLCs to file an annual report.
Corporation: Virginia corporations are required to file an annual report on or before the last day of the anniversary month of incorporation. The filing fee is based on the number of shares, and may range from $100 to $1700. Corporations are also required to keep the following items within their corporate records at their principal place of business:
Franchise Taxes: A franchise tax is imposed on the net capital of all banks and trust companies. Other businesses do not need to pay a franchise tax
Wow loved it thankyou! I dreaded making this for a month thinking it would be a hassle. It wasn't thanks to you guys!
Excellent in all aspects. Perfect for new business owners with limited resources but wants to start it off right.