How Much Does an LLC Cost in Virginia
It costs at least $100 to form an LLC in Virginia. But these additional expenses could increase the total to over $3,000.
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Here are the following fees to consider:
- Articles of Organization: $100
- Certificate of Registration: $100
- Annual Registration: $50
- Permits and Licenses: At least $30
- Taxes: 2% to 5.75% of taxable income
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Optional Fees: Up to $3,000+
Virginia's proximity to the nation's capital provides unique advantages. Entrepreneurs enjoy opportunities for lucrative government contracts, a thriving tech ecosystem fueled by federal agencies, and access to a highly educated workforce.
That said, forming an LLC in Virginia might be a good idea. The question is, how much will it cost you? Find out below.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Domestic LLC Formation Fee
One-Time Filing Fee: $100[1]
To form an LLC in Virginia, you must submit the Articles of Organization to the State Corporation Commission (SCC). Once the documents are approved, your LLC will be recognized as a separate legal entity.
A Virginia LLC's Articles of Organization contain the following information, among other details:[2]
- Limited Liability Company name
- Registered agent name and address
- Company address
- Organizer's name and signature
You can submit the Articles of Organization online, by mail, or in person. Filing online is faster, but you may be charged a convenience fee upon checkout.
In Virginia, an LLC organizer is the person who filed the Articles of Organization with the SCC. This person can be an LLC member, registered agent, or someone else.
Foreign LLC Formation Fee
One-time Filing Fee: $100[3]
If you already have an LLC in another state and want to expand your business to Virginia, register it as a foreign LLC.
To create a foreign LLC in Virginia, you must submit a Certificate of Registration to the SCC with the one-time filing fee. Don't forget to attach a Certificate of Existence.
A series LLC has a main "parent" LLC that can create separate "series" within itself. Each series costs $100 to file with the SCC.[1] Each can hold its assets, contracts, and business activities.
The main benefit here is debts and legal issues of one series generally don't affect the other series or the parent LLC.
Annual Registration Fee
Annual Fee: $50[4]
Unlike most states, Virginia does not require LLCs to file an annual report. However, you must pay a flat registration fee to the SCC each year.
This fee is due at the end of the LLC's anniversary month the year after formation.[4] For example, if you formed your LLC on July 2024, your annual registration fee would be due by July 31, 2025, and every July 31st after.
You can pay online, by mail, or in person. If you send the check by mail, send it early, as it may take time to deliver and process.
A $25 penalty will be added to your total bill if you fail to pay on time.[4] The SCC can also close your LLC if your annual registration remains unpaid by the last day of the third month after the due date.
Permit and License Fees
Annual Fee: At least $30[5]
Virginia does not have a state-level general business license. Instead, it prefers to leave business licensing requirements to local jurisdictions and specific industries.
In Richmond and most other cities in the state, an annual business license costs at least $30. This fee can increase depending on the LLC's annual gross receipts. There is no fee for businesses with gross receipts of less than $5,000.[5]
Additionally, your LLC may need to get local permits like:
- Food Handler Permit for selling or handling food in any way
- Building Permit for construction and renovation businesses
- Liquor License for serving or selling alcoholic beverages
- Occupational License for professional services like dentistry and barbershop
The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously. Some registered agent services offer a customized report of all the permits and licenses your business needs.
Taxes
Annual Cost: 2% to 5.75% of taxable income[6]
The profits and losses of an LLC are passed through to the LLC owner by default. In Virginia, the state income tax rate depends on your taxable income.
2024 State Income Tax Rates:[6]
| Taxable Income | Virginia Tax |
|---|---|
| Not over $3,000 | 2% |
| $3,000 - $4,999 | $60 + 3% of excess over $3,000 |
| $5,000 - $16,999 | $120 + 5% of excess over $5,000 |
| $17,000 and above | $720 + 5.75% of excess over $17,000 |
On top of that, you must also pay federal income taxes.
2024 Federal Income Tax Rates:[7]
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $11,600 |
| 12% | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 |
| 35% | $243,726 to $609,350 |
| 37% | Over $609,350 |
Don't forget the 15.3% federal self-employment tax.[8] This tax covers Social Security and Medicare contributions.
The fees that you'll incur when forming an LLC can be claimed as tax deductions. You can write off the following expenses:
Optional Fees
While the fees below are generally optional, some are unavoidable depending on your business needs.
For example, obtaining a Certificate of Existence is often necessary when opening an LLC bank account.
| Virginia LLC Optional Fees | Cost | Expedited Services | $50 to $200 |
|---|---|
| Registered Agent Services | $0 to $300+ |
| Operating Agreement | $0 to $500+ |
| Employer Identification Number | $0 to $99 |
| Beneficial Ownership Information Report | $0 to $149 |
| LLC Name Reservation | $10 |
| LLC Fictitious Name | $10 |
| Articles of Correction | $25 |
| Articles of Amendment | $25 |
| Certificate of Status | $6 |
| Certified Copy of Documents | At least $6 |
| Website Domain | $10 to $20 |
| Business Insurance Premiums | Varies |
Expedited Service Fee
Fee: $50 to $200[9]
Most LLC forms and fees, including the Articles of Organization, can be processed online. And if you need them quickly, you could pay for expedited services.
Fees vary depending on how fast your documents are processed:[9]
- Next Day Service: $50 or $100
- Same Day Service: $200
However, mail and in-person filings don't qualify for expedited services.
Registered Agent Fee
Annual Cost: $0, or $100-$300/yr
In Virginia, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Virginia. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
No, you don't need an attorney to form an LLC in Virginia. You can form on your own or hire a formation service to help you.
Operating Agreement Fee
Cost: $0, or up to $500+
LLCs in Virginia are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Virginia. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer's Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Virginia don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
Beneficial Ownership Information Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.
[10]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
LLC Name Reservation Fee
Filing Fee: $10[1]
If you've already got a business name but aren't ready to form an LLC, you can reserve your desired name first. It will prevent others from using that name for 120 days.[11]
You can renew the name reservation for another 120 days for the same price. However, you must renew within the 45-day window before the reservation expires.[11]
Remember to review Virginia's detailed list of naming regulations to prevent your reservation from being rejected. An LLC name must include LLC, Ltd., or a similar abbreviation.
Check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL to prevent others from acquiring it.
Fictitious Name Fee
Filing Fee: $10[12]
A fictitious name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state.
Some LLCs use a DBA for branding purposes. In Virginia, fictitious names don't need to be unique and have no wording restrictions. It's also ideal if you want to use a name without "LLC" at the end.
If you're doing business in Virginia under a fictitious name, you must file a certificate with the SCC Clerk's Office. Otherwise, you could be convicted of a misdemeanor, fined up to $2,500, jailed, or face both penalties.[12] You'll also find it difficult to get legal action in Virginia courts.
Articles of Correction Fee
Filing Fee: $25[1]
After your Virginia LLC application is approved, review all the details of the Articles of Organization carefully.
If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Articles of Correction.
Articles of Amendment Fee
Filing Fee: $25[1]
Your Virginia LLC's Articles of Organization contains specific details about your business. Should these details change, you must file the Articles of Amendment to the SCC.
File the Articles of Amendment if you:
- Change the LLC name
- Update the business purpose
- Move to a new address
Unlike other states, Virginia doesn't charge anything if you need to change your registered agent's details. You don't need to file the Articles of Amendment either. Just log in to your SCC account and change the registered agent's name, address, or both.
Certificate of Existence Fee
Cost: $6[13]
A Certificate of Existence, also known as a Certificate of Good Standing, is an official document by the SCC. It verifies that your LLC is updated with all state filings and has paid all its state fees and taxes.
You might need a Certificate of Existence to:
- Open a bank account
- Apply for business loans
- Qualify for business insurance
- Conduct business as a foreign LLC
Contact the SCC to ask why your LLC is in bad standing. The most common reasons include:
- Failure to pay the annual registration
- Failure to renew annual permits and licenses
- Not having a registered agent in Virginia
Pay any outstanding fees and penalties. Then, file a Certificate of Reinstatement with the $100 filing fee.[1]
Certified Copy Fee
Cost: $6 per document + per-page copy fees (hardcopy) | $6 (online)[13]
You might need certified copies of your LLC's documents for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and Articles of Amendment (if any) for recordkeeping purposes.
Online orders have a fixed fee and can be downloaded immediately. Meanwhile, orders by mail or in person have an additional fee per page and can take a few days to process.
Website Domain Fee
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Insurance Premiums
Cost: Varies
Most businesses with three or more employees in Virginia must have workers' compensation insurance.[14]
You can self-insure or purchase from an insurance carrier. The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.
You might also be required to get other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
Bottom Line
In summary, the Articles of Organization fee costs $100 in Virginia. Then, you must pay the $50 annual registration fee.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
- A Fully-Formed Business
- Registered Agent Service
- Business Address
- Mail Forwarding
- Privacy by Default
Economy Package at $149 + State Filing Fees
- Name check service
- Business consultation
- Digital welcome packet
- Customizable WIX website
Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
The total cost will increase depending on the additional services, documents, and licenses your LLC needs. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.
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References
- ^ Virginia State Corporation Commission. Virginia Limited Liability Companies, Retrieved 07/23/2024
- ^ Virginia State Corporation Commission. Articles of Organization of a Virginia Limited Liability Company, Retrieved 07/23/2024
- ^ Virginia State Corporation Commission. Foreign Limited Liability Companies, Retrieved 07/23/2024
- ^ Virginia State Corporation Commission. Annual Registration Fees Retrieved 07/23/2024
- ^ City of Richmond. New Business License Application, Retrieved 07/23/2024
- ^ Virginia Department of Taxation. Tax Rate Schedule, Retrieved 07/23/2024
- ^ IRS. Federal Income Tax Rates and Brackets, Retrieved 07/23/2024
- ^ IRS. Self-employment Tax (Social Security and Medicare taxes), Retrieved 07/23/2024
- ^ Virginia State Corporation Commission. Online Expedited Services, Retrieved 07/23/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Virginia State Corporation Commission. Business Entity Names, Retrieved 07/23/2024
- ^ Virginia State Corporation Commission. Fictitious Names, Retrieved 07/23/2024
- ^ Virginia State Corporation Commission. Certificates and Copies, Retrieved 08/22/2024
- ^ Virginia Workers' Compensation Commission. Frequently Asked Insurance Questions for Employers, Retrieved 07/23/2023
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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