How to Start a Business in Virginia
Everything you need to form your Virginia LLC, corporation, or sole proprietorship — with exact fees, timelines, and step-by-step instructions.
Virginia consistently ranks among the top 10 states for business. LLC formation costs $100 and can be done online in about 15 minutes through the State Corporation Commission. No franchise tax on LLCs, relatively low filing fees, and a business-friendly regulatory environment make the Commonwealth a solid place to start.
This guide walks you through every step, from choosing your business structure to getting your first customers.
Choosing Your Virginia Business Structure
This is the first decision and it affects everything — taxes, liability, paperwork. If you're unsure, an LLC is the right default for most Virginia small businesses.
| Entity Type | Liability Protection | Taxation | Virginia Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $100 | $50/yr | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $75 | $125/yr | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider LLC instead) |
8 Steps to Start Your Virginia Business
- 1
Choose your business structure
LLC, Corporation, or Sole Proprietorship — each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the SCC's BENI system. Reserve for $10 (optional, 120 days).
- 3
Appoint a registered agent
Must have a physical Virginia address. Can be yourself (free) or a service ($100-$300/yr).
- 4
File your formation documents
Articles of Organization (LLC, $100) or Articles of Incorporation (Corp, $75) with the SCC.
- 5
Get your EIN from the IRS
Free, online, takes 5 minutes. Do not pay anyone for this.
- 6
Open a business bank account
Keep personal and business finances separate. You'll need your EIN and formation docs.
- 7
Get required licenses and permits
Virginia doesn't have a single state business license — it's locality by locality.
- 8
Register for Virginia taxes
Sales tax and/or withholding tax through Virginia Tax, depending on your business.
How Much Does It Cost to Start a Business in Virginia?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (SCC) Required | $100 | — |
| Corporation filing fee (SCC) Required | $75 | If forming a corporation instead |
| Name reservation | $10 | Optional, 120 days |
| Registered agent service | $0–$300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Depends on locality |
| Operating agreement | $0–$500+ | Free template or attorney-drafted |
| Realistic LLC total | $100–$500 |
Best LLC Formation Services & Registered Agents in Virginia
You can file your own Articles of Organization with the SCC for $100, but every Virginia LLC and corporation must also name a registered agent with a physical Virginia street address. If you would rather keep your home address off the public record, or you want someone else to handle the filing, these are the three services we recommend for Virginia founders.
- Northwest Registered Agent: best Virginia registered agent and the best formation bundle. $39 plus the $100 state fee covers the SCC filing, an operating agreement template, EIN filing, and a free first year of registered agent service, with US-based support and no upsell maze.
- ZenBusiness: best overall value if you only need the filing handled. The Starter plan is $0 plus the $100 state fee. Registered agent service is a $199 per year add-on, or included in the Pro plan along with compliance reminders for your annual report.
- BetterLegal: fastest setup. Your Virginia business is filed in about 2 business days with your EIN and operating agreement bundled into one checkout, at a premium price.
Have a Virginia address where you can accept legal mail during business hours? You can serve as your own registered agent for free. Read the full Virginia LLC formation service comparison and our guide to choosing a Virginia registered agent before you decide.
Why Start a Business in Virginia?
- No franchise tax on LLCs — compare that to California's $800/year
- Low filing fees — $100 for an LLC, $75 for a corporation
- Strong economy — ranked #1 in CNBC's Best States for Business multiple times
- Proximity to DC — access to $80B+ in federal contracting annually in Virginia
- Educated workforce — one of the highest percentages of advanced degree holders
- Tax reciprocity with DC, MD, WV, KY, PA — matters if employees commute across state lines
Virginia Business Resources
Frequently Asked Questions
- How long does it take to start an LLC in Virginia?
- Online filing through the SCC typically processes in 1–3 business days. Expedited same-day processing is available for an additional fee.
- Do I need a business license in Virginia?
- Virginia doesn't issue a general state business license. Licensing is handled at the city/county level. Check with your local Commissioner of the Revenue.
- Can I form a Virginia LLC if I live in another state?
- Yes. You'll need a registered agent with a physical Virginia address. Many formation services include this.
- What's the cheapest way to start a business in Virginia?
- A sole proprietorship costs $0 in state fees. An LLC costs $100 with the SCC. You can file yourself without a lawyer or service.
- Do I need an operating agreement for my Virginia LLC?
- It's not legally required, but strongly recommended. It defines ownership percentages, profit distribution, and operating procedures. Many banks require one.