Business Registration in Virginia for an LLC or Corporation
Business registration in Virginia is a snap when you follow our step-by-step guide or let MyCompanyWorks register your VA business for you. Read below to find out why tens of thousands of companies have trusted MyCompanyWorks since 2001.
- Step 1: Choose the Right Business Registration in Virginia
- Step 2: Choose an Effective Virginia Business Name
- Step 3: How to Register a Business in Virginia
- Step 4: Apply for a Federal Employer Identification Number
- Step 5: Open Virginia Business Bank and Credit Accounts
- Step 6: Establish Filing and Accounting Systems
- Step 7: Apply for Virginia Licenses and Permits
- Step 8: Hire Employees If Needed
- Step 9: Apply for Virginia Business Insurance
- Step 10: Develop a System to Run Your Business
- Step 11: Brand and Market Your Virginia Business
- Step 12: Recurring Virginia Business Requirements
Virginia Business Facts and Environment
Virginia Business Facts
Virginia was named for Elizabeth I, England’s “Virgin Queen.” Its nickname is the Mother of States. It’s also known as The Old Dominion and the Mother of Presidents. All three nicknames are linked to Virginia’s position as one of the oldest settlements in the US, and one of the first states to join the US.
Virginia, oddly enough, is the birthplace of both college fraternities and streaking. The first-ever recorded person to streak across a campus was George William Crump, in 1804.
According to estimates, anywhere from 50 to 70 percent of all Internet traffic flows through data centers situated in Northern Virginia. These facilities occupy millions of square feet in the upper area of the state.
Tobacco is Virginia’s major cash crop and many of the people who live here earn their living from the tobacco industry.
Top industries in Virginia include architectural and engineering services, banking and lending, computer programming and systems design, food products, and shipbuilding. Several major military centers call Virginia home, and over 20 different bases are peppered throughout the state.
Major Companies in Virginia
It’s no surprise that the US Army is the largest business in Virginia. Other corporate heavy hitters are Dollar Tree, Hilton Worldwide Holdings, DXC Technology, Northrop Grumman, Bechtel, and Capital One.
Virginia Startup Environment
There are lots of incentives for both startups and existing businesses in Virginia With a state corporate income tax rate among the lowest in the nation at 6%, Virginia’s business-friendly policies are attractive for startups. 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.
Step 1: Choose the Right Business Registration in Virginia
The three most popular options for small businesses are the Virginia LLC, Corporation, or DBA. Click here to learn more about business entities.
Virginia LLC – LLC is a common abbreviation for the Limited Liability Company business type. A Virginia LLC registration offers liability protection to owners and does not require a business tax return. Rather, income and expenses are reported on owners’ personal tax returns. The LLC has become increasingly popular over the years since it’s the simplest business type to form and manage. Annual filing costs can be higher than corporations, but overall this option offers personal liability protection and pass-through taxation, reducing the amount of paperwork required to keep your business in good standing.
Virginia DBA – abbreviation for “Doing Business As”. A DBA has a few different names, including Trade Name, Fictitious Name, or Assumed Business Name. DBAs allow sole-proprietors, LLCs, and Corporations to perform business under a name that is separate from personal names and other business functions.
NOTE: Filing a Virginia DBA does not offer liability protection or business tax benefits. It’s simply a way to separate a business from your personal name or other businesses functioning under the same LLC or Corporation.
Virginia Corporation – Registering your business as a corporation offers limited personal liability and pass-through taxation for S-corps. Shareholders, Directors, and Officers are appointed to manage corporations. The Corporation entity type is more complex to manage than a LLC or DBA, if you intend to have a lot of employees or raise business capital, the Virginia Corporation might be the ideal option. If you’re operating as a professional, such as a doctor, lawyer, engineer, or accountant, you’re required to form a Professional Corporation. Requirements appear on our Virginia Corporation order form in the business purpose section.
Step 2: Choose an Effective Virginia Business Name
Believe it or not, marketing your business starts with a name that plainly defines the nature of your business. Your business name becomes the company’s identity, so it’s critical to spend some time thinking about how you want to be known by the public. An effective Virginia business name and logo tell consumers what you’re selling without making them guess. Follow these steps to generate a timeless name that will grow with your business.
Best Practices for Choosing an Effective Virginia Business Name
You can have fun with family friends when you’re considering the right business name. Write down all the words that define your company’s products or services. Then use those words to string together different names. You’ll want to avoid names that are hard to spell or remember. Also, keep in mind your products and services may change over time, so avoid picking names that are limited to your original offerings.
Scan the Internet and Virginia State Sites
You can prevent a lot of confusion with other businesses, tax, and legal issues by checking the Internet for conflicting business names. Even if you’re set on a particular name, it’s best to pick another name if you find that it’s already in use. Marketing a unique business name is much easier than competing with existing businesses. Check business websites for your town/city, county, and state to clear local conflicts. You’ll also want to search Google and other search engines to see if your Virginia business name is available. This is especially important for online businesses and nationwide or international companies.
Search USPTO for Virginia Trademark Conflicts
You can run potential business names through the US Patent and Trademark Office (USPTO) site to further prevent conflicts. Be sure to check different spellings and variations of your business name, as trademark searches can be complex and return many results. You can pay a trademark company to do a name search for you, but they charge high fees. In our experience, you can clear your own unique business name by checking government sites and search engines for conflicts.
Ready to register a business in VA? Our online business registration service will help you get started today!
Step 3: How to Register a Business in Virginia
Each state has its 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.
How to form an LLC in Virginia
- Hire a professional Registered Agent.
- File the “Articles of Organization” with the Virginia State Corporation Commission. These may be filed online or by mail. In both cases, the filing fee is $100. OPTIONAL: Elect S-Corporation status with the IRS by filing IRS Form 2553. Yes, even an LLC can choose to be taxed as an S-Corporation (or even a C-Corporation).
TIP: Speak to your tax advisor about this important issue because it adds complexity to your LLC most people would rather avoid.
- Hold an Organizational Meeting to take contributions from the members, issue Member Certificates, adopt the company Operating Agreement, and more. IMPORTANT: A formal operating agreement defines your company’s policies and directs certain functions, such as adding or removing LLC members and selling the business. All Virginia registration packages come with a free operating agreement template.
How to Incorporate in Virginia
- File the “Articles of Incorporation” with the Virginia State Corporation Commission. These may be filed online at the Virginia New Entity Formation website, or by mail. The filing fee is $100.
- Hire a professional Registered Agent. All Virginia business are required to register an official agent to receive important government and tax notices. You can be your own registered agent, but you must be available during regular business hours to receive notices. OPTIONAL: Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
- All corporations should hold an organization meeting to appoint shareholders, directors, officers, distribute initial shares and determine each owner’s responsibilities.
Considerations when Incorporating or forming an LLC in Virginia
- A Registered Agent is required for every Virginia Corporation and LLC. The chosen registered agent must have a physical street address in Virginia. A professional Registered Agent who will provide their address and forward any important documents to you. This is convenient if you have to move, since you won’t have to file forms or pay fees, (just update your address with your agent).
How to File a DBA 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.
- Check your business name through the Commonwealth of Virginia State Corporation Commission Entity Search.
- If you are a corporation, LLC, or LLP, you must obtain an Assumed/Fictitious Name Filing in a Virginia Circuit Court, and then file a certificate with the Clerk’s Office of the Commission.
- Request DBA filing forms from the county where you will run your business.
- File the forms with the County. You will need to submit a completed form and the required filing fee to the local circuit court clerk’s office. Some counties may require the form to be notarized and published.
Our Tax partners can help you decide which Virginia business structure is right for your company.
Ready to register a business in Virginia? Start your Virginia LLC, Corporation or DBA with MyCompanyWorks online filing services.
- Learn more about how we can form a Virginia Corporation or LLC for you
- Read our verified reviews and 100% Satisfaction Guarantee
- Contact our friendly support team if you have any questions
Step 4: Apply for a Federal Employer Identification Number
All LLCs and Corporations that hire employees must have an Employer Identification Number, which is assigned by the IRS. DBAs are not required to have an EIN, but if you don’t have one, you’ll be forced to use your personal Social Security number on business, tax, and legal documents. Using an EIN can help prevent identity theft, so we recommend applying for one.
You can apply online for an EIN with the IRS or via IRS Form SS-4.
TIP: EINs are available with all our Virginia formation packages.
Step 5: Open Virginia Business Bank and Credit Accounts
It may not seem important, but keeping your personal and business expenses separate is critical if you want to avoid tax and legal issues. When used correctly, a business bank account and business credit accounts will help you keep business matters separate from personal matters. Business credit cards will help you begin to build your company’s credit profile (corporation or LLC required). With good credit, a company can qualify for larger loans and lines of credit. You can either work with a bank where you already have a relationship or reach out to banks that specialize in business accounts. Requirements vary, but in general, you’ll probably need filed formation paperwork, an Employer Identification Number, and a business resolution that authorizes your company to open the account (signed by the owners, members, officers, or directors, etc.).
TIP: Click here to view a list of our recommended banks in our Vendor Network.
Top Business Banks in Virginia
- Branch Banking and Trust Company
- Carter Bank & Trust
- First Citizens Bank & Trust
- SunTrust Bank
- TowneBank
- Wells Fargo
TIP: All Virginia business packages include a free banking solution.
Step 6: Establish Filing and Accounting Systems
You can prevent a lot of future hassles if you set up a paper or digital filing system and bookkeeping software. If you have the money you can hire someone to handle these tasks for you. All Virginia businesses are responsible for taxes, so keeping track from the start of business will help you make proper calculations and timely payments.
Most business documents should be stored for three years. This includes a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be stored for at least seven years, if you’re filing regular tax returns. Businesses that don’t file timely tax returns are always subject to audit, so you’ll need to keep your records indefinitely. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Our preferred vendors for Accountants, Accounting Software, and Bookkeepers can also help and offer exclusive pricing and discounts to MyCompanyWorks clients.
Step 7: Apply for Virginia Licenses and Permits
All Virginia businesses will need to apply for at least a state business license, but your type of business may also require local and county licensing or permits as well. You can check with local and state government authorities for all the requirements, or you can order a Business Licence Compliance package to save time and money.
Step 8: Hire Employees If Needed
Once you have your Employer Identification Number (EIN) and business licenses and permits, you can start the interview and hiring process. You can post online ads on social media or employment websites like Indeed.com for free. You’ll also need to set up a payroll system or hire a service to manage payroll for you. Read our Employees and Payroll guide to get started. Our recommended Payroll Providers can help you get payroll up and running quickly.
Step 9: Apply for Virginia Business Insurance
You can check with a local insurance agent or search for business insurance providers online. Most VA businesses are required to carry general liability insurance and workers’ compensation insurance if they employ workers. You may also want to carry a business policy with owner’s insurance to further protect assets. Any of our recommended insurance providers can answer your questions and help you apply.
Step 10: Develop a System to Run Your Business
You may be responsible for most or even all of the work when you start your company. As you grow, you’ll need to train others to manage tasks and run parts of your business. Every business should have a system to process orders, pay bills, pay employees, pay taxes, maintain recurring tasks. By writing procedures and documenting processes, you could put someone to work quickly when you’re away or out sick, or when you need to train someone to take over. Our Manage Your Company guide will help you set up business systems and organize your processes.
Step 11: Brand and Market Your Virginia Business
Marketing is critical to every successful business. It’s not enough to just build your business and wait for customers. Your business should have a unique logo to go with your business name. It’s also a good idea to set up social media accounts where you can post promotions and attract sales. Creating a marketing plan for your products and services will help you target the ideal customer and track your progress. Need help? Our Marketing & Sales guide has useful tips and links to helpful tools and resources.
Step 12: Recurring Virginia Business Requirements
DBA: There are no additional requirements for DBAs in Virginia.
LLC: Virginia LLCs are required to file an annual report on or before the last day of their anniversary month. The filing fee is $50.
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 $100.
Corporations are also required to keep the following items within their corporate records at their principal place of business:
- Articles of incorporation and amendments
- Bylaws and amendments
- Minutes from shareholder and director meetings
- A record of all actions taken by shareholders and/or on the behalf of the corporation.
- Written communications to shareholders over a three-year period
- An alphabetical list of all shareholder names, including names and addresses, number and class of shares held by each.
- The corporation’s most recent annual report.
- Resolutions adopted by directors related to classes or series of shares and their rights, preferences, and limitations.
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.
Click here to view our MyCompanyWorks Premium™ service which can automate most of your ongoing compliance tasks.
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Important Virginia Contacts
Virginia Secretary of the Commonwealth
P.O. Box 1475
Richmond, VA 23218
804-786-2441
Virginia State Corporation Commission
Virginia Taxation & Labor Departments
Virginia State Startup Resources
- Virginia Economic Development Partnership (VEDP)
- Yes Richmond
- University of Virginia Entrepreneurship Portal
- Northern Virginia Technology Council
- Virginia Highlands Small Business Incubator
- Hampton Roads Small Business Web Portal
- Virginia Business Incubation Association
1. Virginia Small Business Administration
Small Business Administration (SBA) Virginia State District Office
2. SCORE Mentors
SCORE is an excellent hub of active and retired business people who volunteer to support startup businesses. Connecting with a local SCORE mentor can help to avoid pitfalls that are common among startup businesses.
- Virginia Business Portal
- Virginia Small Business Development Center
- Virginia Job Link Employer Portal
- Tax Information For Virginia Businesses
3. Virginia State Legal Statutes:
- Virginia Business Corporation Act
- Virginia State Limited Liability Companies – the specific act that applies to Virginia State LLCs.
- Virginia State Businesses and Professions – includes regulations on topics such as business and professions codes.
4. Virginia State Chambers of Commerce
5. Virginia Angel Investors
6. Virginia Business News
7. Virginia State Small Business Development Center
Register as a “Green” business and connect with other local businesses.
