By Jake Lawson, LLC Formation Strategist
Look, I’m going to cut through the noise here. Everyone wants to know the real cost of starting an LLC in Virginia—not just the state filing fee that gets plastered everywhere, but what you’ll actually spend from Day 1 through Year 1.
After helping over 200 entrepreneurs form Virginia LLCs, I’ve seen every scenario. Some spend the bare minimum $100, others drop $2,000+ because they didn’t know what they were doing. Here’s everything you need to know.
The Bottom Line: Virginia LLC Formation Costs
Minimum to get started: $100 (just the state fee)
Realistic first-year cost: $225-$350 (including essentials)
Premium setup: $500-$800 (if you want the full-service treatment)
Here’s the breakdown of every single cost you might encounter:
| What You Need | Cost Range | Jake’s Take |
| Articles of Organization (state fee) | $100 | Non-negotiable. Virginia SCC gets their cut. |
| Registered Agent | $0-$300/year | Free if you do it yourself, $125-$300 if you hire pros |
| Operating Agreement | $0-$500 | Free templates exist, but custom ones cost more |
| EIN (Tax ID) | $0 | Always free through IRS (don’t pay scammers) |
| Business Name Reservation | $0 | Not required in Virginia—just file your Articles |
| Annual Report | $50/year | Every Virginia LLC pays this, no exceptions |
| Business Licenses | $10-$500+ | Depends on your industry and location |
What Virginia Charges: The $100 Reality Check
Virginia keeps it simple—$100 to file your Articles of Organization with the State Corporation Commission (SCC). That’s it. No monthly fees, no setup charges, just a clean hundred bucks.
This fee creates your LLC legally. Once the SCC approves your filing (usually 2-5 business days), you’re officially in business.
Pro tip: Virginia doesn’t require expedited processing like some states. The standard timeline is reasonable, so don’t let anyone upsell you on “rush” services you don’t need.
The Registered Agent Decision: Free vs. Paid
Every Virginia LLC needs a registered agent—someone with a Virginia address who can accept legal documents during business hours.
Option 1: Be Your Own Agent (Free)
- You save $125-$300/year
- Your name and address become public record
- You need a Virginia street address (no P.O. boxes)
- You must be available during business hours
Option 2: Hire a Professional Service ($125-$300/year)
- Your personal address stays private
- Professional handling of legal documents
- Mail forwarding and scanning services
- Compliance reminders and support
I usually recommend the professional route for two types of founders:
- You don’t live in Virginia but want to form there (rare, but it happens)
- You value privacy and don’t want your home address on public records
My pick: Northwest Registered Agent at $125/year. They’re reliable, responsive, and don’t try to upsell you on every phone call.
Operating Agreement: The Document Everyone Skips (But Shouldn’t)
Virginia doesn’t legally require an Operating Agreement, but here’s why you want one anyway:
- Bank account protection: Many banks ask for it when opening business accounts
- Legal clarity: Defines ownership, management, and profit distribution
- Court protection: Shows you’re running a real business, not a personal piggy bank
Cost options:
- Free templates: Available online (including solid ones)
- Basic attorney draft: $300-$800
- Custom complex agreement: $1,000-$2,500
For most single-member LLCs, a good template works fine. Multi-member LLCs should invest in at least a basic attorney review.
The EIN Number: Free Through IRS, Expensive Through Scammers
Your Employer Identification Number (EIN) is required for:
- Opening business bank accounts
- Filing tax returns
- Hiring employees
The right way: Apply directly through IRS.gov (free, takes 10 minutes)
The expensive way: Pay $50-$300 to middleman services
I’ve seen entrepreneurs pay $200 for something that’s literally free. Don’t be that person.
Virginia’s Annual Requirements: What You’ll Pay Every Year
Annual Report Fee: $50 Due by the end of the month your LLC was formed. Virginia makes this easy with online filing through the SCC portal.
Miss this deadline? You’ll face:
- Late fees
- Administrative dissolution
- Headaches getting back in good standing
Set a calendar reminder. It’s that simple.
Business Licenses: The Wild Card Costs
This is where costs get unpredictable. Depending on your business type and location:
Local business licenses: $25-$200/year
Professional licenses: $100-$1,000+ (lawyers, doctors, contractors)
Sales tax permits: Usually free to $50
Specialized permits: Varies wildly by industry
Examples I’ve seen:
- Consulting LLC: $0 (no special licenses needed)
- Restaurant LLC: $500+ (health permits, liquor license, etc.)
- Construction LLC: $200-$800 (contractor’s license, bonding)
Research your specific industry requirements—Virginia has a business license lookup tool that’s actually helpful.
Tax Considerations: What Virginia LLCs Actually Pay
Virginia LLCs are “pass-through” entities, meaning:
- The LLC itself doesn’t pay corporate income tax
- Profits/losses pass through to owners’ personal returns
- You’ll pay Virginia state income tax on LLC profits (5.75% rate)
Additional tax obligations might include:
- Self-employment tax (if you’re active in the business)
- Sales tax (if you sell taxable goods/services)
- Payroll taxes (if you have employees)
Accountant costs: $300-$900/year for tax prep, depending on complexity.
Formation Service vs. DIY: The Real Cost Analysis
DIY Route (Minimum $100):
- File Articles yourself
- Be your own registered agent
- Use free Operating Agreement template
- Get EIN directly from IRS
Total first-year cost: $150 (state fee + annual report)
Professional Service Route ($250-$500):
- Service handles filing and setup
- Registered agent included (usually first year free)
- Operating Agreement provided
- EIN obtained for you
My recommendation: For most single-member LLCs, DIY is fine if you’re comfortable with paperwork. For multi-member LLCs or if you’re juggling multiple priorities, spend the $200-$300 for professional help.
Services I trust:
- Northwest Registered Agent: $39 + state fee, excellent service
- ZenBusiness: Good value, solid support
- LegalZoom: More expensive but comprehensive
Foreign LLC Registration: If You’re Not Virginia-Based
Forming an LLC in Virginia when you live elsewhere? Think twice.
The math doesn’t work:
- Virginia LLC formation: $100
- Foreign registration in your home state: $100-$500
- Two states of compliance and fees
- No real tax advantages
Bottom line: Form your LLC where you live and do business. “Delaware is better” advice usually doesn’t apply to small LLCs.
Smart Money-Saving Strategies
Year 1 optimization:
- File Articles yourself (save $100-$400 in service fees)
- Start as your own registered agent, switch later if needed
- Use a quality free Operating Agreement template initially
- Get your EIN directly from the IRS
- Research license requirements before paying for unnecessary permits
Long-term savings:
- Set up annual report reminders (avoid late fees)
- Choose a reliable registered agent (avoid switching costs)
- Keep good records (reduce accounting fees)
The Real-World Scenarios
Scenario 1: Solo Consultant
- Articles of Organization: $100
- Registered agent (self): $0
- Operating Agreement (template): $0
- EIN: $0
- Annual report: $50
- Total first year: $150
Scenario 2: E-commerce Business
- Articles of Organization: $100
- Registered agent service: $125
- Basic Operating Agreement: $0
- EIN: $0
- Sales tax permit: $0
- Annual report: $50
- Total first year: $275
Scenario 3: Professional Services
- Articles of Organization: $100
- Registered agent service: $125
- Attorney-drafted Operating Agreement: $500
- Professional license: $300
- EIN: $0
- Annual report: $50
- Total first year: $1,075
Virginia LLC Costs: Final Thoughts
Virginia makes LLC formation straightforward and affordable. The $100 state fee is competitive, annual requirements are minimal, and the SCC actually provides decent customer service.
Key takeaways:
- Budget $150-$350 for your first year (realistic range)
- Don’t overpay for services you can get free (looking at you, EIN services)
- Professional registered agent is worth the $125/year for most businesses
- Research industry-specific licensing requirements early
Questions about Virginia LLC costs? I’ve probably seen your situation before. Virginia is business-friendly without the gimmicks—just straightforward rules and reasonable fees.
Ready to get started? Here’s your action plan:
- Reserve 2-3 hours for the DIY route
- Decide on registered agent (self vs. professional)
- File Articles of Organization with Virginia SCC
- Get your EIN from the IRS
- Set up that annual report reminder
Virginia won’t surprise you with hidden fees or bureaucratic nonsense. It’s one of the more straightforward states I work with—which is exactly what most entrepreneurs need.
Jake Lawson has guided over 1,200 entrepreneurs through LLC formation across all 50 states. His no-nonsense approach helps founders launch smart, not just fast. Connect with Jake at llciyo.com for more business formation insights.