By Jake Lawson | LLC Formation Strategist & Tax Advisor
Virginia—where history meets high-tech, the Pentagon drives half the economy, and forming an LLC is refreshingly straightforward. After helping 125+ entrepreneurs launch Virginia LLCs, from Norfolk Navy contractors to Richmond restaurateurs, I can tell you this: The Old Dominion keeps it simple and affordable.
At $100 to form and $50 annual fees, Virginia hits the sweet spot between dirt-cheap and suspiciously expensive. No frills, no surprises, just solid business formation at reasonable prices. But before you file those Articles of Organization with the State Corporation Commission (SCC), let’s talk about what makes Virginia tick.
The Virginia LLC Landscape
Virginia offers a balanced approach to business formation that actually makes sense.
Form in Virginia if:
- You live in Virginia
- You operate in Virginia
- You serve the DC market from Virginia
- You own Virginia property
- You have Virginia-based operations
Skip Virginia if:
- You’re shopping for the absolute cheapest state
- You have zero Virginia connections
- You think proximity to DC means special benefits
- You can legitimately operate from North Carolina or Maryland
The “I’ll form in Delaware instead” strategy fails when you realize you’ll need to register as a foreign LLC in Virginia anyway, doubling your costs and paperwork.
What Virginia Brings to the Table
Virginia offers solid fundamentals without the gimmicks:
- $100 formation fee (reasonable by any standard)
- $50 annual fee (among the lowest nationally)
- 2-5 day processing (consistent and reliable)
- Strong business infrastructure (DC proximity helps)
- Educated workforce (top universities everywhere)
- No publication requirements (unlike some neighbors)
The State Corporation Commission handles LLCs efficiently. They’re not winning any innovation awards, but they get the job done without drama.
Your 6-Step Virginia LLC Formation Plan
After 125+ Virginia formations, here’s the streamlined approach:
- Secure your business name
- Lock down a registered agent
- File Articles of Organization
- Create an Operating Agreement
- Get your federal EIN
- Register for Virginia tax account
That sixth step catches people off guard—Virginia requires separate state tax registration even if you don’t owe taxes yet.
Step 1: The Virginia Name Game
Virginia’s naming rules are standard, but their search system is actually pretty good.
Basic Requirements:
- Must include “Limited Liability Company,” “Limited Company,” “L.L.C.,” “LLC,” “L.C.,” or “LC”
- Must be distinguishable from existing entities
- Can’t imply illegal activities
- Can’t suggest government affiliation
Search Strategy That Works:
Use the SCC’s Business Entity Search, but here’s the pro approach:
- Search exact match first
- Try variations: “Virginia” vs “VA”
- Check abbreviations: “Tech” vs “Technology”
- Look for inactive entities: Still blocking names
Name Reservation:
Virginia lets you reserve a name for 120 days for $10. Cheap insurance if you need time to prepare.
Step 2: The Registered Agent Requirement
Every Virginia LLC needs a registered agent with a Virginia street address. Standard stuff, but important to get right.
Your Three Options:
DIY Agent:
- Cost: $0
- Reality: You’re tied to that Virginia address
- Privacy: Address goes public
- Risk: Miss important documents at your peril
Friend/Family Agent:
- Cost: Free plus relationship capital
- Reality: Hope they’re reliable
- Privacy: Their address becomes public
- Risk: Awkward if they mess up
Professional Service:
- Cost: $50-200/year
- Reality: Reliable and professional
- Privacy: Your address stays private
- Recommended: For most businesses
Given Virginia’s business-heavy environment and proximity to litigation-happy DC, professional agents make sense for most.
Step 3: Filing Articles of Organization
Virginia offers online and paper filing through their SCC eFile system.
Online Filing (Recommended):
- Cost: $100
- Processing: 2-5 business days
- System: SCC eFile
- Payment: Credit card accepted
Paper Filing (Why Bother?):
- Cost: $100 plus certified mail
- Processing: 2-5 days plus mail time
- Extra steps: Print, mail, wait
- Only if: System is down
Expedited Options:
- Priority Handling: Add $50 (1-2 business days)
- Same Day: Add $100 (if submitted by 1 PM)
Unless you need it yesterday, standard processing is fine.
What You’ll Need:
- LLC name (confirmed available)
- Registered agent info and consent
- Principal office address (can be registered agent’s)
- Organizer information
- Brief purpose statement (can be general)
SCC System Quirks:
- Creates account for every filing
- Emails get lost sometimes
- Save everything as you go
- Download confirmation immediately
Step 4: Operating Agreement (Your Virginia Shield)
Virginia doesn’t require an Operating Agreement, but skipping it near the lawsuit capital of America is asking for trouble.
Why It Matters in Virginia:
DC Proximity Factor: More sophisticated business environment means higher standards
Banking Requirements: Most Virginia banks demand it
Federal Contracting: Often required for government work
Legal Protection: Virginia courts respect well-documented LLCs
Single-Member Essentials:
- Your 100% ownership
- Management authority
- Banking powers
- Succession planning
- Dissolution procedures
Multi-Member Must-Haves:
- Ownership percentages
- Capital contributions
- Voting procedures
- Transfer restrictions
- Buy-sell provisions
- Dispute resolution (arbitration in Virginia)
Templates work for simple structures. Complex partnerships or federal contractors should invest in custom drafting ($1,500-3,000).
Step 5: Federal EIN (Standard Process)
Getting your EIN for a Virginia LLC follows the usual path.
Fast Track (US Citizens/Residents):
- Apply at IRS.gov
- Completely free
- Instant EIN
- Monday-Friday, 7am-10pm Eastern
International Route:
- File Form SS-4 by fax
- Still free
- 4-8 week wait
- Common for DC-area international business
Virginia-Specific Tips:
- Wait for SCC approval first
- Use Virginia address for consistency
- Match name exactly to Articles
- Save confirmation immediately
Step 6: Virginia Tax Account Registration
Here’s what trips people up: Virginia requires separate tax registration even if you won’t owe taxes immediately.
What You Need:
- Register with Virginia Department of Taxation
- Get Virginia Tax Account Number
- Different from federal EIN
- Required for all Virginia LLCs
Process:
- Go to Virginia Tax website
- Select “Register a New Business”
- Enter LLC and EIN info
- Receive account number
- File even if no tax liability
This catches out-of-state founders constantly. Don’t skip it.
Post-Formation: Virginia Operations
Your LLC exists! Now for the ongoing requirements:
Immediate Tasks:
Business Banking:
- Separate accounts mandatory
- Virginia has plenty of options
- Regional banks often better for small business
- Navy Federal popular in military areas
Local Compliance:
- County/city licenses vary widely
- Northern Virginia different from Tidewater
- Richmond has its own rules
- Research your specific location
Industry Licenses:
- Professional services heavily regulated
- Contractors need state license
- Check DPOR requirements
- Federal contractors have additional requirements
Annual Fee (Not Report):
Virginia doesn’t require an annual report—just a fee:
- Cost: $50/year
- Due: Last day of anniversary month
- Process: Simple online payment
- Penalty: $25 late fee
- Note: It’s just a fee, not a report
This confuses people expecting paperwork. Nope, Virginia just wants their $50.
Virginia-Specific Considerations
The DC Factor:
Northern Virginia operates differently:
- Federal contracting opportunities
- Higher costs of operation
- More sophisticated business environment
- International business common
- Security clearance considerations
Military Presence:
Hampton Roads and Northern Virginia:
- Huge military population
- Transient residents
- Federal employment
- Contract opportunities
- Unique market dynamics
Regional Variations:
- Northern Virginia: Tech, federal contractors, high cost
- Richmond: State capital, finance, moderate cost
- Hampton Roads: Military, maritime, tourism
- Southwest Virginia: Manufacturing, agriculture, low cost
Location within Virginia matters more than people realize.
Real Numbers: Virginia LLC Costs
Let’s talk actual investment:
Year One:
- Articles of Organization: $100
- Registered Agent: $50-200
- Operating Agreement: $0-3,000
- EIN: $0
- Tax Account: $0
- Local Licenses: $0-500
- Total: $150-3,800
Annual Ongoing:
- Annual Fee: $50
- Registered Agent: $50-200
- Local Licenses: $0-500
- Total: $100-750
Compare to Maryland ($300 annual) or DC ($220 annual) and Virginia looks like a bargain.
Common Virginia LLC Mistakes
After 125+ formations, here are the preventable disasters:
- Forgetting tax account registration (separate from EIN)
- Confusing annual fee with annual report (no report needed)
- Ignoring local requirements (Fairfax County doesn’t play)
- No Operating Agreement (dangerous near DC)
- Missing DPOR licensing (for regulated professions)
The Professional Help Question
Can you DIY a Virginia LLC? Absolutely. The SCC system works reasonably well.
Should you? Consider:
DIY if:
- Simple structure
- Time to handle details
- Comfortable with forms
- Low-risk business
Get help if:
- Complex ownership
- Federal contracting goals
- Professional services
- No time for details
Services run $39-500 plus state fees. Given Virginia’s straightforward process, DIY makes sense for many.
Your Virginia LLC Action Plan
This Week:
- Search business name
- Choose registered agent
- File Articles online
- Pay $100 fee
Within 30 Days:
- Get federal EIN
- Register for tax account
- Open business bank account
- Draft Operating Agreement
Ongoing:
- Calendar annual fee date
- Maintain registered agent
- Keep records organized
- Update as needed
The Bottom Line on Virginia LLCs
Virginia offers solid value for LLC formation. Not the cheapest, not the most expensive, just reasonable costs with efficient processing and minimal ongoing hassle. The proximity to DC creates opportunities, the educated workforce provides talent, and the business infrastructure supports growth.
The Old Dominion doesn’t try to be Delaware or Wyoming. It’s just Virginia—straightforward, reliable, and business-friendly enough. For legitimate Virginia businesses, that’s exactly what you need.
Form here because you’re doing business here, not because of marketing hype. Keep it simple, pay your annual $50, and focus on growing your business.
Questions about Virginia LLC formation? That’s what we’re here for at llciyo.com. We’ve helped 1,200+ entrepreneurs launch their businesses, including 125+ in the Commonwealth.
Jake Lawson has been guiding entrepreneurs through state LLC requirements since 2010. When he’s not explaining the difference between an annual fee and annual report, he’s probably debating whether Northern Virginia is really part of Virginia or just South DC.