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. 1

    Choose your business structure

    LLC, Corporation, or Sole Proprietorship — each has different costs, tax treatment, and liability protection.

  2. 2

    Pick and reserve your business name

    Search the SCC's BENI system. Reserve for $10 (optional, 120 days).

  3. 3

    Appoint a registered agent

    Must have a physical Virginia address. Can be yourself (free) or a service ($100-$300/yr).

  4. 4

    File your formation documents

    Articles of Organization (LLC, $100) or Articles of Incorporation (Corp, $75) with the SCC.

  5. 5

    Get your EIN from the IRS

    Free, online, takes 5 minutes. Do not pay anyone for this.

  6. 6

    Open a business bank account

    Keep personal and business finances separate. You'll need your EIN and formation docs.

  7. 7

    Get required licenses and permits

    Virginia doesn't have a single state business license — it's locality by locality.

  8. 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

See full cost breakdown →

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

Virginia State Corporation Commission (SCC) Entity filing, name search, annual reports scc.virginia.gov → Virginia Tax Tax registration, sales tax, withholding tax.virginia.gov → Virginia SBDC Free business counseling and training virginiasbdc.org → SBA Virginia District Office Federal loans, programs, and mentoring www.sba.gov → Virginia Employment Commission Employer requirements, unemployment insurance vec.virginia.gov →

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.