How to Start a Business in Virginia (2026)
To start a business in Virginia, choose a structure, then file with the Virginia State Corporation Commission - an LLC files Articles of Organization for $100 through the Clerk's Information System. After that, the LLC pays a $50 annual registration fee, registers with Virginia Tax, and obtains any local license required where it operates.
Quick Answer
- State filing agency
- Virginia State Corporation Commission (SCC)
- LLC formation fee
- $100 - Articles of Organization
- Annual registration fee
- $50, due the last day of the month the LLC was organized
- Late penalty (LLC)
- $25
- Nonstock corporation annual fee
- $25
- Tax registration
- Virginia Tax, plus local BPOL licensing
- Federal EIN
- $0 - free from the IRS
Step 1: Choose the Structure
Virginia recognizes sole proprietorships, general partnerships, limited liability companies, stock corporations, and nonstock corporations. A sole proprietorship needs no state formation filing but gives the owner no liability separation. An LLC is the usual choice for a small Virginia business because it separates personal and business liability while keeping pass-through federal taxation by default. See what an LLC is and S-corp vs LLC before deciding.
Step 2: Clear the Name
Virginia requires an entity name that is distinguishable on the SCC's records from names already registered. Check availability in the Clerk's Information System before you print anything, and reserve the name if you need lead time. See Virginia business entity search. A clear SCC search is not trademark clearance - see trademark basics - and a trade name different from the legal entity name is registered separately; see Virginia DBA filing.
Step 3: File with the State Corporation Commission
Virginia's business registry sits with the State Corporation Commission (SCC), not a Secretary of State. An LLC is created by filing Articles of Organization (Form LLC-1011) with the SCC for a $100 fee, most conveniently through the Clerk's Information System (CIS). Stock corporations pay a charter fee that depends on the number of authorized shares, which is why share counts should be chosen deliberately rather than defaulting to a large number.
The articles state the LLC name, the registered agent and registered office, and the principal office address. Ownership terms are not filed - they belong in a Virginia operating agreement. See Virginia Articles of Organization and Virginia Certificate of Formation for the document detail, and how to form an LLC in Virginia for the full walk-through.
Step 4: Appoint a Registered Agent
Every Virginia LLC and corporation must continuously maintain a registered agent and a registered office in Virginia. Virginia is stricter than most states about who qualifies: an individual agent must generally be a Virginia resident who is a member or manager of the LLC, an officer or director of a corporation, or a licensed Virginia attorney, and a business entity agent must be authorized to transact business in Virginia. See Virginia registered agent requirements.
Step 5: Calendar the $50 Annual Registration Fee
Virginia LLCs do not file a narrative annual report; they pay an annual registration fee. The SCC sets that fee at $50.00 per year for an LLC, due on the last day of the month in which the business was organized or registered. The SCC assesses the fee and notifies the business roughly two months before it is due. Nonstock corporations pay $25.00 annually; stock corporation fees depend on authorized shares.
| Entity | Annual fee | Due | Late penalty |
|---|---|---|---|
| LLC | $50 | Last day of the organization month | $25 |
| Nonstock corporation | $25 | Last day of the formation month | $10 |
| Stock corporation | Based on authorized shares | Last day of the formation month | Greater of 10% of the fee or $10 |
| Limited partnership / business trust | See SCC schedule | Last day of the formation month | $25 |
Missing the fee has a hard consequence. An LLC that has not paid is canceled on the last day of the third month following the due date; a corporation is terminated on the last day of the fourth month following its due date. Reinstatement is possible but costs more than paying on time. The statutory basis is Va. Code § 13.1-1062. See Virginia annual report requirements.
Step 6: Register for Taxes
Get a free EIN from the IRS - never pay a third party for one. Then register the business with Virginia Tax for the accounts your activity requires: retail sales and use tax if you sell taxable goods, employer withholding if you have employees, and income tax accounts appropriate to the entity's classification. Virginia Tax handles business registration online.
Federally, a single-member LLC is disregarded and reports on Schedule C; a multi-member LLC files a partnership return; and owners generally owe self-employment tax on their share of business income. See Virginia LLC tax filing, self-employment tax, and the business tax hub.
Step 7: Local Licenses and Permits
Virginia has no single statewide general business license. Instead, most cities and counties administer a local business license under the Business, Professional and Occupational License (BPOL) framework, and rates and thresholds vary by locality and business classification. Regulated occupations add professional licensing through the Department of Professional and Occupational Regulation. Check with the commissioner of the revenue in the locality where you operate. See Virginia business license.
What It Actually Costs in Year One
The mandatory state cost to start a Virginia LLC is small: $100 to the SCC to file the Articles of Organization, and nothing else until the first annual registration fee comes due on the last day of your organization month. A federal EIN is free. Everything else depends on choices you make - a commercial registered agent charges its own annual fee, expedited processing and certified copies cost extra, and a local BPOL license carries a locality-set charge that is often tied to gross receipts.
Corporations look different. Because Virginia's stock corporation charter fee and annual registration fee both scale with the number of authorized shares, a founder who authorizes ten million shares "just in case" creates a permanently higher annual bill than one who authorizes what the cap table actually needs. If you are weighing entity types on cost alone, the LLC's flat $50 annual fee is the simpler and usually cheaper path.
Budget the recurring items rather than the launch items. After year one, a typical single-member Virginia LLC's required state spending is the $50 annual registration fee plus any local license renewal - a predictable number that does not scale with revenue at the state entity level.
Step 8: Set Up to Operate
- Open a dedicated business bank account so personal and business funds are not commingled - commingling is a common argument for piercing the liability shield.
- Adopt a written operating agreement even though Virginia does not require one.
- Keep the registered agent's information current with the SCC; changes are filed, not assumed.
- Track three separate calendars: SCC annual registration fee, Virginia Tax filing frequencies, and federal deadlines.
- If you later close, file properly rather than letting the entity be canceled - see how to dissolve an LLC in Virginia.
Frequently Asked Questions
How much does it cost to start an LLC in Virginia?
$100 to file Articles of Organization with the SCC, then $50 a year. See Virginia LLC cost.
Does Virginia have a Secretary of State for business filings?
No. The State Corporation Commission runs the registry through its Clerk's Information System.
When is the Virginia annual registration fee due?
The last day of the month the business was organized. LLCs pay $50; nonstock corporations $25.
What happens if a Virginia LLC does not pay the annual registration fee?
A $25 late penalty applies, and the LLC is canceled on the last day of the third month after the due date.
Does Virginia require a statewide business license?
No. Local BPOL licensing applies instead - see Virginia business license.
Who can be a registered agent in Virginia?
A Virginia-resident member, manager, officer, director, or licensed Virginia attorney, or an entity authorized to do business in Virginia.
Related
- How to form an LLC in Virginia
- Virginia LLC cost
- Virginia Articles of Organization
- Virginia Certificate of Formation
- Virginia registered agent requirements
- Virginia annual report requirements
- Virginia business entity search
- Virginia LLC tax filing
- Virginia DBA filing
- Virginia operating agreement
- Virginia business license
- How to dissolve an LLC in Virginia
Sources
- Virginia State Corporation Commission - Virginia Limited Liability Companies, forms and fees ($100 Articles of Organization).
- Virginia SCC - Annual Registration Fees ($50 LLC fee, due last day of organization month, $25 late penalty, cancellation timing, $25 nonstock fee).
- Virginia SCC - Articles of Organization form (LLC).
- Virginia SCC - Maintaining Your Business.
- Virginia SCC - Forms and Fees.
- Code of Virginia - § 13.1-1062, Assessment of annual registration fees.
- Virginia Tax - Register a Business in Virginia.
- IRS - Limited Liability Company (LLC).
- IRS - Get an Employer Identification Number (free EIN).
- IRS - Self-Employment Tax.
LegalGlass provides general information for educational purposes and is not legal advice, is not a law firm, and is not a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current amounts with the Virginia State Corporation Commission and Virginia Tax before acting.