How Much Does It Cost to Start and Maintain an LLC in Virginia?

Filing Fees to Legally Start an LLC in Virginia

Launching an LLC in Virginia is straightforward, but knowing every cost up front lets you start an llc with confidence. If you’re ready to form your company, follow our step-by-step guide on how to start an LLC in Virginia. The state’s filing system is online, and fees are flat, so surprises are rare if you budget. Below, we dissect each mandatory and optional expense, starting with the paperwork you must file before opening for business. Don’t forget to define your business purpose for LLC clearly when you file.

Articles of Organization – $100 State Filing Fee

Virginia’s Articles of Organization carry a $100 state charge, payable to the SCC when you file the form online or by mail. For a full cost breakdown, see our in-depth guide on LLC cost. Once accepted, the articles of organization create your LLC’s legal shell, giving you access to an EIN, banking, and contracts. You can draft the form yourself in the Clerk’s Information System, which pre-populates organizer and registered agent details, then pay by card. Standard processing takes one to three business days, or you can add $200 for next-day approval via the SCC’s expedited tier. Curious about overall timing? Learn how long to form an LLC from start to finish.

Name Reservation – When It’s Needed and the $10 Fee

If your preferred name might be snapped up before you file, Virginia lets you lock it for 120 days with a $10 filing fee. Submit Form SCC631 online; renewal is optional during the final 45 days. Name reservations are not required for same-day filings, but they are handy when coordinating multistate launches or investor pitches that need branding consistency. The reservation certificate lists your personal name, not the LLC, so investors can verify you hold rights to the brand.

Fictitious Name (DBA) – $10 and When to File It

Running storefronts or product lines under different branding? File a Certificate of Assumed or Fictitious Name for $10. The SCC records the alias so customers can link it to the underlying business entity. Most banks also demand proof of the DBA before issuing merchant accounts, making this small fee a smart investment in brand protection. In Virginia, DBA filings go through the SCC rather than county courts, streamlining record searches for wholesalers and licensing boards. Each alias requires its own $10 payment, but renewals are free as long as your LLC stays active.

Business Registration Certificate – What’s Required and When

Virginia does not issue a statewide general business license, but many counties require a Business, Professional and Occupational License (BPOL). Expect fees from $0 to $200 depending on revenue thresholds. Verify local rates through your county’s commissioner of revenue; the corporation commission will not notify you of local obligations. Fees often scale with gross receipts, so your first-year outlay could be nominal while later payments grow alongside revenue—plan accordingly. Many jurisdictions waive BPOL for home-based companies under certain revenue caps; others require zoning compliance letters before issuance. Applying early avoids delays securing health permits, ABC licenses, or Fairfax County occupancy certificates that hinge on BPOL approval.

Annual Registration and Recurring LLC Costs

After formation, every domestic and foreign LLC pays a $50 annual registration fee to remain in good standing. To see how Virginia’s rate compares nationwide, check our overview of LLC annual fees.  Unlike franchise taxes in Texas or Delaware, this fee never scales with revenue or payroll, making Virginia one of the more affordable long-term jurisdictions for small firms.

Annual Registration – $50 Due Each Year

You’ll receive an email reminder from the SCC 60 days before the due date. Need a refresher on the steps? Here’s our guide on how to renew an LLC. Log into CIS, review your entity’s info, and file online with a credit card or ACH before midnight on the last day of your anniversary month. If your payment fails, the system allows a second attempt before assessing penalties; you may also pre-pay up to three years. After submission, download the PDF receipt—banks and government contractors often request it during onboarding as proof you remain authorised to transact.

Late Penalties and Administrative Dissolution

Miss the deadline and the SCC adds a $25 penalty to your account; if unpaid for three months, a foreign llc risks automatic termination of its authority to transact in Virginia. Domestic entities face administrative delinquency and lose the right to sue until fees clear, which can jeopardize contract enforcement. Penalties accrue per entity, so holding companies with multiple subsidiaries can rack up charges quickly. During delinquency, the SCC stamps your public record with a warning banner that vendors and grant officers can see, potentially jeopardising funding rounds.

Reinstatement Costs – Fees and Deadlines

To revive a delinquent entity, pay all past-due fees plus a $100 reinstatement filing. The form asks for updated principal office and limited liability company signatory information, then posts within 24 hours. If dissolution reached the courts, you must also file Articles of Reinstatement and pay any court-imposed costs. Foreign entities need a recent certificate of good standing from their home state. Plan ahead: reinstatement does not revive a lapsed business license, meaning you must coordinate with local tax offices to avoid double penalties. Processing times mirror standard online filings.

Registered Agent Fee – Free or Up to $150/Year

Virginia lets you serve as your own registered agent for free, but most owners hire a commercial service costing $100–$150 a year. For a full comparison of providers, explore the best LLC service in Virginia. Prices vary by value-add: cheaper firms forward mail weekly, while premium agents provide same-hour scanning, annual report reminders, and identity-theft insurance. If you operate across multiple states, choosing one national agent simplifies billing and maintains a consistent corporate footprint. Remember, the SCC will reject formation documents if the agent’s physical address or digital consent is missing.

Annual Report vs Annual Tax – What Virginia Actually Requires

Unlike some states, Virginia requires no separate income tax or franchise tax filing for LLCs. Your only annual obligation to the SCC is the $50 registration payment; all tax reporting flows through federal returns and, if elected, Virginia Form 502 for multi-member entities. Single-member LLCs list profit on Schedule C, while multi-member companies file Form 1065 and issue K-1s. Virginia largely conforms to federal taxable income, but adjustments for depreciation and state credits may apply. No annual report is required—only the $50 fee—so you save hours compared with states that demand statements of information. Keep digital backups for three full tax years. To understand other states’ requirements, read more about the LLC annual report.

Optional Legal and Administrative Expenses

Beyond state fees, smart budgeting sets aside cash for drafting agreements, obtaining official copies, and amending filings—collectively modest but necessary llc formation extras that keep investors and banks comfortable. They also strengthen your negotiating position with suppliers, lenders, and potential acquirers who scrutinise governance hygiene before extending credit or purchasing equity.

Operating Agreement – Free to $500 if Outsourced

You can download a template and customize it at no cost, but many founders invest $200–$500 in attorney review to craft a robust llc operating agreement. If you want detailed cost benchmarks, check our analysis of attorney fees to form an LLC. A clear contract prevents member disputes, clarifies voting thresholds, and streamlines profit allocations—benefits that far outweigh the initial outlay. A well-drafted agreement also clarifies buy-sell terms, disability contingencies, and dissolution triggers, sparing members costly litigation. If you ever court venture capital, investors will request the signed agreement. Virginia courts defer to the contract when settling disputes, so gaps could expose you to default statutory rules. Custom clauses can also address intellectual-property ownership. Once your agreement is set, see our complete walkthrough on how to form an LLC.

Certificate of Good Standing – $6 Online

Banks often ask for a Certificate of Fact of Existence before opening a bank account. Virginia issues it instantly online for $6, and you can email the PDF to lenders or foreign registration offices within minutes. The certificate expires after 90 days for foreign registration purposes, so order fresh copies when expanding. Bulk ordering five certificates costs the same as one, letting you keep extras on hand for grant applications or client onboarding. Digital files include a QR code linking to the SCC database. Many accelerators list it as a funding prerequisite.

Certified Copies or Amendments – Costs and Use Cases

Need to prove charter amendments to out-of-state regulators or investors? Order certified copies of filings for $6 plus $0.50 per page. Series conversions or structural tweaks, such as creating a series llc, also require amended articles at the same $25 filing fee, plus charter tax if you add shares. Lenders often insist on certified copies when collateral involves membership-interest pledges. Turnaround is instant for documents filed after 2019; older microfilm records may take three business days. Each set arrives with a tamper-evident SCC seal.

Business License and Permit Costs in Virginia

While Virginia handles LLC filings at the state level, most revenue rules come from your county or city, so budgeting for a business license requires local research. Think of the license as a permission slip to generate revenue on Main Street, whether you sell cupcakes or code. Skip it and you risk fines that dwarf the modest registration fee.

Statewide Licensing for Regulated Industries (e.g., contractors, food services)

Some professions—contractors, real-estate brokers, barbers, even tattoo artists—must clear the department of revenue’s partner licensing boards before opening their doors. Individual boards set rates from $90 to $235, plus exam fees. Submit proof of insurance and pass background checks where required, then upload the PDF license in the SCC’s Clerk Information System. Renewals usually cost half the initial fee and fall every two years. Many boards also require continuing-education hours—budget roughly $50 per credit—and missing CE triggers reinstatement costs that can void insurance tied to active licensure.

Local Business Permits – Varies by County or City

Before you form an llc, review your county BPOL table:

• 0 % on gross receipts under $50 000
• $30 flat for $50 001 – $100 000
• $0.20 per $100 above $100 000

Some counties add micro-fees for signage, farmers-market stalls, or seasonal fireworks booths. Remote workers may still owe BPOL once revenue crosses local thresholds. Because BPOL is self-reported, schedule quarterly estimates to avoid 10 % underpayment penalties plus interest.

Zoning and Home-Based Business Fees

Home offices sail through zoning with a $50 application, yet identical space might be off-limits for retail traffic. If you operate as a sole proprietorship, inspectors can fine you personally, so converting to an LLC before expansion adds liability protection. Rural zones may ban food production without special-use permits; urban condos often prohibit client visits. Budget $100–$200 for fire-suppression reviews when you remodel, and remember a zoning refusal can void lease contingencies, forcing pricey exits.

Taxes Virginia LLCs May Owe

Virginia keeps corporate levies low, but ignoring sales and use tax or pass-through filing rules can erase those savings. We’ll cover brackets, self-employment levies, retail thresholds, payroll deposits, and federal elections so you plan cash flow confidently.

Virginia Income Tax – How LLCs Are Taxed

Virginia imposes progressive tax rates—2 % on the first $3 000 of taxable income, 3 % on the next $2 000, 5 % on the next $12 000, and 5.75 % thereafter. Common deductions include:

• Section 179 equipment write-offs
• Health-insurance premiums for member-managers
• Qualified Business Income (QBI) deduction

Single-member entities file Schedule C with Form 760; multi-member LLCs file Form 502 and distribute K-1s. The state mirrors federal Section 179 and bonus-depreciation rules, letting startups front-load equipment costs. Capital losses carry forward five years against Virginia income.

Self-Employment Tax – For Pass-Through LLCs

Members who actively participate owe SECA tax at 15.3 % on their shares. Electing S-corp status trims the bill only if reasonable salaries are documented. The tax applies whether profits are distributed or retained, so use IRS 1040-ES and Virginia 760-ES for quarterly estimates. S-corp election demands payroll software and timely deposits—failures invite back-FICA assessments.

Sales and Use Tax – Who Needs to Register

Once your llc in virginia tops $100 000 in sales or 200 transactions, register for sales tax. Collect 4.3 % state tax plus up to 2.7 % local surtax, then file Form ST-9 monthly or quarterly online within 20 days after period end. Marketplace facilitators remit on sellers’ behalf, but remote firms under the cap must still file zero-returns to avoid delinquency flags. Digital goods are taxable unless custom-programmed, so itemize mixed invoices to dodge audit adjustments.

Payroll and Withholding Obligations

Hiring employees triggers state withholding—register your EIN and file VA-5 for each pay run. Maintain an annual report of W-2 totals and reconcile with Form VA-6 by January 31. Also register with the Virginia Employment Commission once wages exceed $1 500 in any quarter. Missed filings rack up $100 monthly penalties, capped at 30 % of tax due.

Federal Tax Classification Options and Impact

LLCs may choose disregarded, partnership, S-corp, or C-corp status. Opting for pass-through taxation avoids double tax but shifts quarterly estimates to members. File IRS 2553 or 8832 within 75 days of formation. C-corp status suits capital-intensive ventures that retain earnings; revoking an S-election requires a five-year wait unless IRS grants relief, so consult a CPA first.

Foreign LLC Costs for Operating in Virginia

Expanding from another state? Registering grants contract rights and banking access but starts with a certificate of registration filing and Virginia’s standard annual fees. The SCC also honors existing operating agreements, so paperwork stays light after approval.

Certificate of Registration – $100 Fee

Registration mirrors domestic charters: upload a dated home-state good-standing certificate, appoint a Virginia registered agent, and pay $100 online. Include principal office, manager names, and NAICS code. The SCC emails approval in three business days; expedited 24-hour service costs $200. Use the approval letter when opening Virginia bank accounts or signing leases.

Annual Registration Requirements for Foreign Entities

Foreign LLCs pay the same $50 fee each anniversary month and must track address or agent changes with a reliable compliance calendar. They also maintain sales-tax and payroll registrations. Miss the fee by three months and the SCC terminates authority; reinstatement requires clearing past dues plus a fresh home-state certificate. Keep calendar alerts synced across jurisdictions to avoid double penalties when holidays shift deadlines.

Virginia LLC Formation – DIY vs Hiring a Service

Choosing between do-it-yourself paperwork and a paid platform often comes down to how much time you can spare to form an llc. Below is an up-to-date snapshot of 2025 pricing so you can balance cash flow against convenience.