If you’re thinking about launching a venture in Virginia, the first thing to get right is the paperwork. Skipping a step can mean fines or delays, so we’ll walk through the basics you can handle yourself or with a quick call to the state office. From picking the right business structure to filing the right forms, the process is simpler than you might think.
Start by choosing a legal structure – most new owners go with an LLC or a corporation because they protect personal assets. Once you decide, file the Articles of Organization (for an LLC) or Articles of Incorporation (for a corporation) with the Virginia State Corporation Commission. The filing fee is $100 for an LLC and $25 for a corporation, and you can submit online in minutes.
After the state filing, you’ll need an EIN from the IRS. This 9‑digit number works like a Social Security number for your business and lets you open a bank account, hire employees, and pay taxes. Apply for free on the IRS website – you’ll get the number instantly.
Don’t forget the Virginia Business License. Most localities require a license to operate, and the cost varies by city or county. Check the local government website for the exact amount and any extra permits you might need, especially if you’re in food service, construction, or health care.
Virginia has a few ongoing obligations. First, you’ll file an annual report with the State Corporation Commission – it’s due each year on the last day of the month you originally filed. The fee is $50 for an LLC and $25 for a corporation. Missing this report can lead to administrative dissolution, which means your business loses its legal status.
Second, understand the state’s tax landscape. Virginia’s corporate income tax is a flat 6% on net earnings, while LLCs taxed as pass‑through entities report income on the owners’ personal returns. You’ll also need to register for state sales tax if you sell tangible goods – the rate is 4.3% plus any local additions.
Finally, keep good records. Track income, expenses, employee wages, and any sales tax you collect. The state can audit you, and having organized books makes the process painless. Many small businesses use simple accounting software like Wave or QuickBooks, which can generate the reports you need for tax filings.
Starting a business in Virginia doesn’t have to be a maze. Follow these steps, stay on top of annual filings, and keep your tax obligations in check. With the right foundation, you’ll be ready to focus on growth rather than paperwork.
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